AAA PROJECTS A 2.5% DECLINE IN JULY 4 TRAVEL – MORE AMERICANS WILL FLY BUT FEWER WILL DRIVE
South Dakota mirrors the national trend – AAA expects a two percent drop in overall travel with slightly less-congested highways but busier airports.
NEWS from AAA South Dakota, June 22, 2011 – AAA predicts 39 million Americans will travel 50 miles or more from home during the Independence Day holiday weekend, a 2.5 percent decrease from a year ago. Three percent fewer will drive over the holiday, a total of 32.8 million, but nine percent more Americans will fly, a little more than three million.
The number of South Dakotans predicted to travel over the Fourth is 2.6 percent lower this year – 124,570, according to AAA. The auto club expects 100,150 South Dakotans will drive to their holiday destinations, a decline of two percent from last year. However, 5,700 will fly, a dramatic ten percent increase from the July 4, 2010 holiday period.
“AAA is projecting a slight decline in the total number of Independence Day travelers mainly due to fuel prices being a bit less than one dollar per gallon higher than last year,” said Mark Madeja, spokesman for AAA South Dakota. “Increased fuel costs are also responsible for a shift in the demographics of the typical Independence Day traveler as higher prices impact lower income households more significantly.”
The amount of money spent each month on gasoline is unlikely to vary much across household income groups. But as a share of total spending, fuel consumes a larger portion of the budgets of lower income households. As a result, AAA’s research indicates the percentage of travelers with a household income of $50,000 or less will to decrease from 41 percent to 33 percent, while travelers with a household income of more than $100,000 will increase from 26 percent to 35 percent.
Even with higher pump prices, five out of six travelers will drive to destination
Automobile travel remains the dominant mode of transportation (84 percent of holiday travelers nationwide and 80 percent of South Dakotans) despite gasoline prices about 90 cents per gallon more expensive than a year ago. According to AAA’s updated-daily website AAAFuelGaugeReport.com, the national average price for regular gasoline today, June 22, is $3.626. South Dakota’s average now stands at $3.673.
Impact of gasoline prices on travel plans
A survey of intended travelers found that 56 percent said rising gasoline prices would not impact their travel plans. For the remaining 44 percent who said rising gas prices would impact their travel plans, seven out of 10 will economize in other areas and three out of 10 are planning to take a shorter trip or get there via a different mode of transportation.
Travelers concerned about how fuel prices will impact their travel budget can use AAA’s free, GPS-based TripTik Mobile application to compare prices for all grades of gasoline at nearby stations. TripTik Mobile is available for iPhone and Android devices. Travelers may also use TripTik Mobile to get maps and directions, AAA Approved and Diamond Rated hotel and restaurant information complete with AAA inspector notes, plus details about attractions, events and AAA-Approved Auto Repair facilities.
Number of air travelers expected to increase by nine percent
The increase in the number of air travelers continues a rebound in air travel that began in 2010 following the lowest years for air travel in the past ten – those of 2009 and 2008. The higher cost of gasoline is contributing to the increase in air travel, despite recent jumps in airfares. Nationally, eight percent of all holiday travelers will be heading to airports over the Fourth with the remaining eight percent using other modes of transportation including rail, bus and watercraft.
Travelers to experience increases in airfares, hotel rates and car rental rates
According to AAA’s Leisure Travel Index, Independence Day holiday airfares will average 11 percent more than last year with an average lowest round-trip rate of $213 for the top 40 U.S. air routes. Hotel rates for AAA Three Diamond lodgings are predicted to be three percent higher than a year ago with travelers spending an average of $147 per night compared to $143 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay eight percent more with an average cost of $110 per night. Weekend daily car rental rates will average $56, a three percent boost over a year ago.
Average travel distance down seven percent; median spending up 25 percent from last year
According to a survey of traveler intentions, the average distance traveled by Americans during the July 4 holiday weekend is expected to be 573 miles, seven percent less than last year’s average travel distance of 617 miles. AAA predicts median spending will total $807, an increase of 25 percent from the $644 recorded last year.
AAA offers mobile and digital travel planning resources
For Independence Day getaways and vacation planning, travelers can use AAA’s digital eTourBook guides for smartphones and e-reader devices. Each new digital guide book highlights a top North American travel destination, complete with listings for AAA Approved and Diamond Rated hotels and restaurants; AAA Editor’s Picks for attractions, events and nightlife; and other proprietary information available only through AAA. Members can download the 40 available titles at AAA.com/ebooks and sync them to their device for on-the-go use.
AAA makes trip planning tools accessible on the mobile devices most used by travelers. Along with the TripTik Mobile app, AAA offers iPhone and Android versions of AAA Discounts and AAA Roadside. Using GPS technology, AAA Discounts displays nearby locations that offer AAA member-only Show Your Card & Save discounts and AAA Roadside transmits a user’s location and details about a vehicle breakdown when a member requests AAA roadside assistance. Membership is not required to download and use AAA apps, but is needed to take advantage of the available AAA member features and benefits.
AAA’s projections are based on economic forecasting and research by IHS Global Insight, a Boston-based economic research and consulting firm. AAA first teamed with IHS in 2009 to jointly analyze travel trends over major holidays. The complete AAA/IHS Global Insight Independence Day travel forecast can be found at AAA.com/news. The holiday travel period is defined as running from Thursday, June 30 to Monday, July 4.
As North America’s largest motoring and leisure travel organization, AAA provides more than 52 million members (89,000 in South Dakota) with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA South Dakota can be visited online at AAA.com.
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