Americans are gearing up for a record-breaking travel season this Fourth of July, with an estimated 71 million people expected to hit the road, according to the latest data from AAA. Despite concerns about high fuel prices and the looming threat of a hurricane, vacationers are eager to kick off their summer festivities.
AAA forecasts that around 60 million people will be driving to their destinations, while nearly 6 million are expected to fly. Additionally, approximately 4.6 million people will be traveling by bus, train, or cruise during the holiday period. These numbers are unprecedented, with AAA spokesperson Andrew Gross noting that this year’s travel figures resemble what 2020 would have looked like without the pandemic.
While inflation remains a concern, recent data shows that consumer spending is on the rise, offering hope that the U.S. Federal Reserve can effectively manage inflation without triggering a recession. Gasoline prices have slightly decreased in recent months, with the national average price per gallon at $3.50. Domestic airfare is also down by 2%, with an average round trip costing $800.
Despite the increase in fuel prices compared to previous years, a survey conducted by American Trucks found that most travelers are undeterred by the higher costs. Gasoline demand has reached a one-year high as retailers prepare for the holiday rush, while jet fuel demand remains steady.
Although Hurricane Beryl poses a potential threat to travel plans, the storm is expected to weaken considerably by the time it reaches Mexico’s Yucatan Peninsula. Fortunately, U.S. fuel inventories are well-stocked, providing motorists with a buffer against any sudden price shocks in case of disruptions to refining operations.
Overall, the outlook for U.S. vacation travel remains positive, with GasBuddy analyst Patrick De Haan noting that Americans are optimistic and eager to hit the road. Despite challenges such as high fuel prices and the hurricane season, travelers are determined to make the most of the holiday season and enjoy some well-deserved time off.
