Americans Can Set Records for Air, Auto Travel this 4th July

Americans Could Set Record For Air, Auto Travel This July 4th. As many as 50.7 million are expected to fly, drive, or take other forms of travel this Independence Day

Key TakeAway

• Notwithstanding the escalated ticket expenses, surpassing the previous year by nearly 50%, an all-time high in the number of individuals traveling for Independence Day flights is anticipated.
• AAA projects that 43.2 million travelers will embark on a road journey, whereas 4.17 million will opt for air travel to celebrate the Fourth of July this year.
• As indicated by a survey conducted by Morgan Stanley, concerns regarding the economy have prompted 38% of Americans to curtail their summer travel plans.

Americans are poised to establish unprecedented travel benchmarks this year for Independence Day, surpassing the 2019 achievements in terms of both air and car mileage, all while likely disregarding persistently high fuel and travel ticket expenses in order to commemorate the summer holiday.

The travel association AAA foresees a staggering 50.7 million Americans embarking on journeys spanning 50 miles or more for the Fourth of July, surpassing the pre-pandemic record of 49 million travelers in 2019.

The majority of travelers will opt for road trips, with AAA estimating that 43.2 million individuals will undertake automobile travel for the Fourth of July, surpassing the previous high point of 42.2 million in 2022. Furthermore, air travel is expected to reach unprecedented levels this year, with 4.17 million Americans taking to the skies during the holiday weekend, representing an 11.2% surge from last year's figures and marking the largest number of air travelers since 3.91 million Americans in 2019 flew for the Fourth.

An additional 3.36 million individuals are anticipated to undertake journeys by means of bus, cruise, or train this year, denoting a 24% rise compared to 2022. However, this figure falls short of the 3.54 million who opted for alternative travel methods in 2019.

Paula Twidale, the Senior Vice President of AAA Travel, expressed, "We have never predicted such elevated travel numbers for the Independence Day weekend." 

Twidale added, "This indicates that despite limited availability and ticket prices soaring by 50%, consumers are not scaling back on their summer travel plans. Many of them heeded our advice and made early bookings, which further highlights the robust demand for travel."

Travelers Ignoring Costs

Undeterred by expenses, travelers persist in proceeding with their travel plans, following a trend observed since the previous year. Despite gas prices averaging around $4.80 per gallon during the summer of 2022, which did not hinder the setting of record-breaking automobile travel numbers for July Fourth, individuals are undaunted by the current average of $3.50 to $3.60 per gallon this summer. However, they now face airfare costs that are, on average, 40% to 50% higher than the previous year. Nonetheless, bookings continue to rise.

The AAA projections align with data from the Transportation Security Administration (TSA), which indicated that a record number of Americans embarked on journeys to commence the summer vacation season during the Memorial Day holiday in May.

Scaling back on expenditures and plans

The AAA's projected record numbers for Fourth of July travel coincide with findings from a Morgan Stanley survey, suggesting a potential decline in consumer enthusiasm for travel in general. According to the Morgan Stanley AlphaWise US Consumer Pulse Survey, 60% of respondents expressed intentions to travel within the next six months, displaying only a slight increase compared to the same period last year.

However, only 19% of participants stated their plans to travel more this year compared to the previous year, while 38% anticipated traveling less due to economic concerns. The survey also indicated that 38% of respondents expected to spend less on summer travel compared to last year, while 23% anticipated higher expenditures.