Travelers Undeterred by Higher Gas Prices

Americans are traveling this holiday weekend in record numbers, despite significant increases in gas and airfare prices. According to AAA, 45 million people are expected to fly or drive at least 50 miles from home, up from last year’s record of 44.8 million.

For James Smith, the higher costs aren’t a deterrent. He’s flying from New Mexico to Newark, New Jersey, for a holiday weekend with friends at the Jersey shore, and spent $550 on his flight.

Airfares are up more than 20% compared to last year, according to estimates from travel booking site Kayak and data from major airlines. Gas prices nationally averaged $4.55 a gallon as of Friday, up $1.38 from last year.

The fact that travel isn’t slowing down despite higher costs isn’t surprising, said Adam Sacks, president of Tourism Economics. Survey data indicates there’s a lot of concern about gas prices. But there’s a disconnect between how people feel and how they act.

Historically, gas price spikes haven’t significantly impacted leisure or business travel, unless other factors are at play. Sacks noted that people who struggle most with higher gas prices or airfares tend not to travel much anyway.

More than half of leisure hotel spending comes from people making $150,000 or more, Sacks said. However, some hotel bookings appear to be softening, with travelers potentially skipping overnight stays to save money.

Laura Lee Blake, CEO of the Asian American Hotel Owners Association, said travelers might visit family members or stay with friends instead of booking a hotel. This trend is evident in the plans of Frantz Simon and his family, who are driving from Long Island to Georgia for a high school graduation and staying with family to save money.

In June Lake, California, near Yosemite National Park, Connie Lear manages rental reservations for 42 units, mostly condos and private homes. She’s seen many regular renters cut back on their stays, opting for shorter trips instead of the usual 7-day bookings.

Some people are finding ways to travel without breaking the bank. John Mercagliano is using his miles on American Airlines to fly to Arizona, where his friends live, instead of vacationing in London as originally planned.

According to the outlet, the average cost of gas has increased significantly over the past year, with prices up 53% since the start of the Iran war.

The number of travelers on the roads and in the skies is expected to remain high throughout the weekend, with 45 million people on the move. Despite the higher costs, it seems that for many Americans, the desire to travel and spend time with loved ones is outweighing the financial concerns.

In terms of raw numbers, the breakdown of travelers is as follows:

39.7 million people are expected to drive
3.1 million people are expected to fly
2.2 million people are expected to use other modes of transportation
45 million total travelers, up from 44.8 million last year

Tourism Economics president Adam Sacks noted that the trend of travelers finding ways to save money without sacrificing their trips is likely to continue, as people prioritize spending time with family and friends over concerns about gas prices and airfares.