AAA cites $4 gasoline, 8% hike in air fares as vacation spoilers
By Steve Gelsi, MarketWatch
Last update: 11:49 a.m. EDT May 15, 2008
NEW YORK (MarketWatch) -- About 360,000 fewer Americans will travel 50 miles or more this Memorial Day weekend as gasoline spikes near $4 a gallon and airlines' fares gain altitude on the historic rally in oil prices, the AAA said Thursday.
The ranks of U.S. travelers will be dented by about 1% to just under 37.9 million, with most brushing aside a nearly $1-a-gallon increase in gasoline prices to fill up the tank.
The average U.S. gasoline price rose about 2 cents to $3.78 a gallon in the last day, according to the Daily Fuel Gauge Report from the AAA. The cost of gasoline has risen 22% from its year-ago price of $3.10 a gallon, and it's up nearly 12% from its price of $3.39 a gallon a month ago.
'If a trend toward higher gas prices and fewer travelers were to continue, it could eventually impact travel-dependent companies ...'
— Robert Darbelnet, AAA
Prices for crude oil crossed $100 a barrel for the first time in January and have pushed to a record level of nearly $127 a barrel in recent days.
Nearly 31.7 million Americans are expected to travel by automobile over the upcoming three-day weekend, a 1% decrease from the approximately 32 million people who drove a year ago.
Nearly 4.35 million plan to fly this holiday weekend, a decrease of 0.5%, and about 1.8 million plan to go by train, bus or other mode of transportation.
"Many Americans are feeling a financial pinch this holiday weekend from record-high gasoline prices and other factors in the economy," said Robert Darbelnet, AAA's president and chief executive.
"Despite the small decrease, we will still see a significant number of people traveling this weekend. More than 12% of the U.S. population will be celebrating the Memorial Day weekend away from home."
According to AAA's Leisure Travel Index, air fares over the Memorial Day weekend are expected to be 8% higher than they were last year: Air passengers will pay an average $179.
Car-rental rates will climb to a daily average of $45, up 45% compared with $31 a year ago.
"If a trend toward higher gas prices and fewer travelers were to continue, it could eventually impact travel-dependent companies that provide employment opportunities and tax revenues in almost every city and town in America," Darbelnet said.
By AAA's estimates, the greatest number of automobile travelers this Memorial Day holiday weekend will originate in the West with 7.6 million travelers, followed by the Southeast with 6.8 million; Midwest, 6.7 million; Northeast, 5.8 million; and Great Lakes, 4.8 million. End of Story
Steve Gelsi is a reporter for MarketWatch in New York.
