Drop in Gas Prices Will Fuel Labor Day Travel, AAA Says

BURNSVILLE, MNAugust 24, 2006: With fuel prices slipping down to around $2.90 per gallon, AAA expects no let up in travel for the Labor Day holiday weekend. AAA estimates that 35.2 million Americans will travel 50 miles or more from home this holiday, a 1.2 percent increase from the 34.8 million who traveled last year.

Approximately 29.6 million travelers (84 percent of all holiday travelers) expect to go by motor vehicle, just over the 29.1 million who drove a year ago.

Another 3.9 million (11 percent of holiday travelers) plan to travel by airplane, down from the 4.0 million that flew last Labor Day holiday. A projected 1.6 million vacationers (4.5 percent) will go by train, bus, or other mode of transportation, down from about 1.7 million a year ago.

"Labor Day brings this eventful and strong summer travel season to a close," said Gail Weinholzer, director of public affairs, AAA Minnesota/Iowa. "Despite seeing gas prices at record heights this summer, Americans have traveled nonetheless, and the recent price drops certainly won't stop them from traveling through Labor Day."

Weinholzer added, "Travel will be up only slightly this holiday weekend. Both high gas prices and the increasing number of school systems that start before Labor Day contribute to the small increase in expected travel."

The forecast 1.2 percent increase for Labor Day is the second smallest expected rise since Memorial Day 2003, when holiday travel began to rebound after the 9/11 attacks and Iraq invasion, AAA said. In 2005, Labor Day travel increased by only 0.9 percent over 2004, which had a 2.4 percent increase from the year before. In 2003, the rate of increase was 1.8 percent, AAA said.

Holiday auto travelers will find gas prices nationwide currently averaging $2.92 for a gallon of self-serve regular gasoline--down almost 7 cents from a month ago and about 32 cents higher than a year ago.

AAA's Leisure Travel Index shows other vacation costs up from Labor Day 2005. Hotel rates have increased, averaging 5 percent higher for a moderately-priced hotel room for the 20 top destinations used in the comparison. Car rental rates have skyrocketed, increasing by an average of 14 percent from last years prices, while airfares have decreased about 1 percent.

"To help ease the pain of high travel costs this Labor Day weekend, travelers should take time to shop around to find the best hotel value," said Weinholzer. "And even though gasoline will still make up a relatively small part of many families' travel expenses, it's worth taking steps to save on gasoline and improve fuel economy to help deal with high summer gas prices."

AAA's gas saving tips for vacation travelers include:

-- Take the most direct route, reduce your chances of getting lost and avoid known holiday traffic bottlenecks by getting directions with AAA.com's TripTik(R) travel planner or from public Web sites like www.AAAmaps.com;

-- Shop around for the least expensive gas by watching prices before you need to fill-up. AAA's Fuel Finder website helps drivers find the lowest cost fuel at local stations. Access the AAA Fuel Finder at local AAA club web sites.

-- Drive your most fuel efficient vehicle that works for your trip.

-- Know before you go by using AAA's www.fuelcostcalculator.com web site. Just plug in the make and model of your car and where you are traveling and you will get an estimate of how much you will be spending on gas for the trip.

-- Keep your car well-maintained by keeping tires properly inflated and having a professional technician inspect your vehicle before you go;

-- Drive gently. Excessive braking and accelerating reduces fuel economy, as does driving faster than highway speed limits.

The most Labor Day travelers will originate in the West with 9.1 million, followed by the Southeast with 8.3 million; Midwest, 6.5 million; Northeast, 6.2 million; and Great Lakes, 5.2 million.

The West is expected to produce the most holiday travelers by auto, truck or RV, with 7.4 million, followed by the Southeast with 6.9 million; the Midwest with 5.7 million; the Northeast with 5.0 million; and the Great Lakes with 4.6 million.

The West is also expected to produce the largest number of air travelers with 1.5 million, followed by the Southeast at 1.2 million; the Northeast will produce 500,000 air travelers, the Great Lakes 400,000 and the Midwest 300,000.

Towns/rural areas top the list of preferred destinations this holiday with 28 percent of travel volume. Cities rank next, with 26 percent, followed by oceans/beaches, with 17 percent. Lake areas expect to see 8 percent of holiday travelers; followed by mountain areas, 4 percent; state/national parks, 4 percent; and theme/amusement parks, 4 percent. Another 7 percent responded with other, and 3 percent said they didn't know.

Despite dropping fuel prices, travelers are still paying more for fuel than they were a year ago. And although fuel is only a small portion of a vacationer's budget, travelers are finding more ways to save money while on vacation, leading 41 percent of the total Labor Day travelers expecting to stay at friends' and relatives' homes. Hotels/motels rank second, with 32 percent, followed by camper/trailer/RV/tent, 9 percent; own cabin/condo, 5 percent, and rented cabin/condo 5 percent. Another 2 percent responded with bed & breakfast; other 1 percent; no overnight stay, 5 percent; and didn't know, 1 percent.

Research for holiday travel is based on a national telephone survey of 1,600 adults by the Travel Industry Association of America, which conducts special research for AAA.

AAA (www.aaa.com) offers automotive, travel, insurance and financial services to more than 49 million members in the United States and Canada. AAA Minnesota/Iowa is part of The Auto Club Group, with 4.1 million members in eight Midwest States. AAA Minneapolis serves nearly 179,000 members in Hennepin County.