Year-End Holiday Travel to increase 3.8 percent

BUFFALO, N.Y., December 16, 2009 – AAA is projecting 87.7 million Americans will be traveling 50 miles or more away from home during the year-end holidays. This is a 3.8 percent increase from the 84.5 million Americans who traveled during the same Christmas / New Year period one year ago, and is the largest projected increase for any major holiday this year.

The number of travelers by automobile is expected to be 77.7 million in 2009 compared to 74.4 million last year; an increase of 4.4 percent. The number of travelers by air is expected be 4.2 million compared to 4.1 million in 2008; an increase of 2.9 percent. The number of those traveling by “other” means, including, trains, watercraft, buses and multiple-modes of transportation, is expected to be 5.8 million compared to 6.0 million last year.

“More Americans traveling during the winter holidays is another sign consumers are continuing to grow more confident in their personal financial situations,” said Tom Chestnut, President/CEO of AAA Western and Central New York. “The moderate projected rise in the number of air travelers this holiday period is especially welcome since the airline industry was hit especially hard by the recession.”

Last year, the total number of travelers during the year-end holidays was 84.5 million; a decline of 4.7 percent from 2007. This year’s number of travelers represents the largest year-over-year increase since 2003-2004.

Gasoline prices will not deter auto travelers

Eighty-eight percent of year-end vacationers are expected to travel by automobile, while five percent are projected to go by air and the remaining seven percent by “other” mode.

The national average for a gallon of regular self-serve gasoline is currently $2.59. Travelers in New York State can expect to pay $2.84 per gallon, compared to $1.95 in 2008. Motorists in the Buffalo/Niagara area can expect to pay $2.85 per gallon, while drivers in Rochester will pay $2.84. In Syracuse and Central New York, the average price is $2.79 per gallon.

Hotel rates down, airfare and car rental rates up

According to AAA’s Leisure Travel Index, rates for AAA Three Diamond lodgings are expected to be 10 percent less than last year with travelers spending an average of $119 per night. Travelers planning to stay at AAA Two Diamond lodgings will pay 6 percent less than last year; an average of $86 per night. The lowest average published airfares over the year-end holiday period are expected to increase two percent from last year to an average of $179 per roundtrip ticket. Car rental rates also will increase; up two percent to an average of $50 per day for a mid-size car versus $49 per day last year.

Average spending projected to be $1,009 per household

Americans are expected to spend approximately $1,009 per household on travel during the Christmas / New Year period. The largest average share (35 percent) of all spending will be on transportation and transportation-related expenses. Approximately 11.6 percent of spending will go toward lodging. Dining will account for 17.6 percent of total holiday expenditures, while shopping will account for 17.6 percent. Entertainment and recreation expenses will account for 13.1 percent of the average travel budget.

Distance for travel will average 791 miles roundtrip

Christmas / New Year travelers will average a distance of 791 miles roundtrip this holiday season. An estimated forty percent of travelers will journey more than 700 miles round trip, while a quarter (25 percent) of travelers will log between 251 and 700 miles. More than one-third (35 percent) of travelers will journey 250 miles or less round trip.

The year-end holiday travel period is defined as Wednesday, December 23 to Sunday, January 3.

In cooperation with AAA, IHS Global Insight has developed a unique approach to forecasting actual travel that explicitly considers current economic conditions, past Christmas/New Year’s holiday travel trends and behavior, and a recent assessment of pre-holiday American travel intentions derived from a survey of 1,350 American households. The survey was completed November 16-20, 2009.

As Upstate New York’s largest member services organization, AAA provides nearly 880,000 members with travel, insurance, financial and automotive related services. Since its founding in 1900, AAA has been a leading advocate for the safety and security of all travelers. Visit AAA at www.AAA.com.

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