A record 72.2 million Americans were expected to travel at least 50 miles from home during the Independence Day holiday period, according to AAA, setting a new record despite gasoline prices remaining well above last year’s levels. The forecast, released by AAA on June 17, projected more travelers than last year’s record 71.8 million, highlighting continued consumer demand for summer vacations even as travel costs increased.

Stacey Barber, Vice President of AAA Travel, said the number surpassed last year’s record even as the pace of growth slowed.

“For many Americans, traveling the week of July 4th is tradition,” Barber said. She added that while travel growth is beginning to level off, Americans are still hitting record numbers on the roads, in the skies, and at sea.

The travel period spans nine days, from Saturday, June 27, through Sunday, July 5. AAA developed the forecast with S&P Global Market Intelligence, using economic data including employment, household wealth, gasoline prices, and airline and hotel bookings.

The overwhelming majority of travelers chose to drive. AAA projected 61.4 million people would travel by car, representing about 85% of all holiday travelers. That is virtually unchanged from last year’s 61.3 million, despite significantly higher gasoline prices.

On Thursday, the national average price for regular gasoline stood at $3.84 per gallon, according to AAA. That was more than 20% higher than the same period last year. Prices, however, have fallen sharply in recent weeks, down from $4.29 a month earlier and well below the May 21 peak of $4.56, when fuel costs surged during the conflict with Iran.

“Overall, gas prices remain the highest they’ve been in four years, but the downward trend since late May is welcome news during the busy summer driving season,” AAA said.

Fuel prices continue to vary widely across the country. Hawaii has the highest statewide average at $5.47 per gallon, followed by California at $5.39 and Washington at $5.07. Among the least expensive states are Indiana at $3.10, Texas at $3.35, and Oklahoma at $3.36.

Even with gasoline costing more than last summer, driving remains the most affordable option for many families, particularly those traveling with children. That has helped keep road-trip numbers steady while other travel expenses have climbed.

Air travel remained relatively flat. AAA expected 5.85 million people to fly during the holiday period, a 0.2% increase from last year and roughly 8% of all travelers. The average domestic round-trip airfare reached about $830, approximately 5% higher than a year earlier, based on booking data. Popular routes to destinations such as Chicago and Denver experienced some of the largest price increases.

The fastest-growing segment of holiday travel is neither automobiles nor airplanes. AAA projected 4.93 million travelers would use buses, trains, or cruise ships, a 5.3% increase from last year. Cruise vacations account for much of that growth, as more families choose trips that bundle transportation, accommodations, and meals into a single price.

Based on booking data, the most popular domestic destinations included Seattle, Orlando, Anchorage, Miami, and New York City. AAA said Seattle ranked as the nation’s most popular destination this Independence Day.

For motorists, timing proved critical. Transportation analytics company INRIX projected the heaviest congestion during the second weekend of the holiday period. On Saturday, June 27, traffic was expected to be worst between noon and 5 p.m. INRIX recommended departing before 10 a.m. whenever possible. Travelers returning home on Sunday, July 5, were advised to leave before 11 a.m., with the most severe congestion expected from noon until 6 p.m.

Rental cars also remained in strong demand. Hertz expected Thursday, July 2, to be its busiest pickup day of the holiday period. According to the company, Orlando, Denver, Boston, Los Angeles, and New York City ranked among the busiest rental markets based on advance reservations. AAA also reported that domestic rental-car prices were running roughly 10% higher than last year.

The broader picture is a travel market that has settled into a more sustainable pattern after several years of rapid post-pandemic growth. The increase from 71.8 million to 72.2 million travelers represents another record, although the gains are more modest than the double-digit increases seen in previous years.

That resilience sends an important signal for businesses that rely on holiday travel, including hotels, restaurants, airlines, cruise operators, and gasoline retailers. Consumers have largely absorbed higher airfares and fuel costs without abandoning vacation plans. For many families, the holiday trip remains a priority, even if they trim spending elsewhere to make it happen.

JBizNews Desk | New York

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