ORLANDO, Fla. -- The combination of a growing economy and low gasoline prices will push travel volume on Memorial Day 2015 to the highest level in a decade, AAA predicts.
The group expects 37.2 million Americans to travel 50 miles or more from home during the holiday weekend. This would represent a 4.7% jump from 2014, the greatest forecast growth rate for any holiday tracked by AAA since Independence Day 2012.
That 37.2 million travel volume figure would also reach a high not seen since 2005. Of these travelers, 88%, or 33 million, will drive during the holiday travel period, which AAA defines as Thursday, May 21 to Monday, May 25. This represents a 5.3% increase from the year prior.
The lowest Memorial Day gasoline prices in at least five years will be one motivating factor. While the national average retail price for gasoline has risen for nearly 27 consecutive days to reach $2.66 per gallon—the highest average of the year—it is still $1 per gallon lower than it was on the holiday weekend last year, AAA reports.
On a regional basis, California has the highest average gas prices at $3.72 per gallon, followed by Hawaii ($3.23), Nevada ($3.22), Alaska ($3.15) and Oregon ($3.00), according to AAA, which cites refinery issues as a factor. South Carolina ($2.37), Missouri ($2.39) and Mississippi ($2.40) have the lowest averages. Thirty states and Washington, D.C., have seen prices down $1 or more per gallon year-over-year, with Ohio, Michigan and Kentucky enjoying the greatest savings.
“A strong employment market and low gas prices have driven consumer optimism to new highs and boosted Americans’ disposable income,” said Marshall L. Doney, AAA president. “This is welcome news for the travel industry.”
To see the full AAA/IHS Global Insight 2015 Memorial Day Travel Forecast, click here.
Separately, American Petroleum Institute (API) chief economist John Felmy said that Memorial Day travelers and the businesses that cater to them are reaping the benefits of increased U.S. oil and natural gas production.
“As we head into the Memorial Day weekend, motorists are getting some welcome relief at the pump,” said Felmy during a press conference call on Thursday. “Thanks to hydraulic fracturing and horizontal drilling, the U.S. is experiencing a renaissance in domestic oil and natural gas production. The benefits for U.S. consumers—as well as manufacturers, the travel and tourism industry and frankly our entire economy—are hard to overstate. Government policymakers should not take these things for granted. In order to maintain a robust supply of domestic oil, it is essential that the industry be allowed to affordably and predictably explore for and develop new resources.”
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.