AAA: Start your engines, holiday travelers

AAA today projected the number of Americans traveling this Labor Day holiday weekend will increase 9.9 percent from 2009, with approximately 34.4 million travelers taking a trip at least 50 miles away from home. Last year, at the height of the recession, only 31.3 million Americans traveled during the Labor Day holiday. The 2010 Labor Day holiday travel period is defined as Thursday, September 2 to Monday, September 6.

The increase in travel for Labor Day appears to be the result of economic improvement during the past year. While job growth has been disappointing, gross domestic product, household net worth and consumer confidence have increased, while consumer debt has decreased. The U.S. travel industry began to gain traction in the fourth quarter of 2009 and that momentum has continued this year.

 In addition to economic data, the date of the Labor Day holiday is another variable considered in the forecast. The later the holiday falls in September, the more likely districts are to start the school year before the holiday weekend, keeping families closer to home. Although the growth in Labor Day travel is predicted to be strong at 9.9 percent, had the holiday fallen earlier in the month the forecasted number of travelers would likely be even higher.

 Car trips increase along with gas prices

Trips by automobile are expected to increase in popularity with 91 percent of travelers, or 31.4 million people, reaching their destination by driving. This is an increase of 10.3 percent from last Labor Day when 28.5 million travelers went by motor vehicle.  Barring any major tropical storm activity in the Gulf Coast region, AAA expects the national average price of self-serve regular gasoline to be around $2.70 per gallon during this holiday weekend. The current average price of self-serve regular unleaded gasoline in Washington has gone up about a dime since the beginning of summer to $3.10 per gallon, an increase of 21 cents since last Labor Day weekend. In Idaho, the current average is $2.99 per gallon, an increase of nearly 30 cents since a year ago.

 Air travel

Leisure air travel is expected to account for just five percent of overall travel with 1.62 million holiday flyers. This is an increase of 4.6 percent from one year ago when 1.54 million flew. According to AAA’s Leisure Travel Index, airfares over the Labor Day holiday weekend are expected to increase nine percent from last year with the lowest round-trip rates moving up to $179 for the top 40 U.S. air routes.

 Hotel and rental car rates increase

 Weekend daily car rental rates will increase seven percent to an average of $46. Hotel rates for AAA Three Diamond lodgings are expected to increase six percent from a year ago with travelers spending an average of $139 per night compared to $132 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay two percent more at an average cost of $102 per night.