Sticking closer to home may not cushion the sticker shock. The nonprofit Institute on Taxation and Economic Policy estimated Americans would collectively spend an extra $3.5 billion on gasoline over the holiday weekend. The average price for a gallon of regular gas in the U.S. was $4.56 on Thursday compared to $3.18 a year ago, according to motor club AAA.
Other travel expenses have gone up too. The latest consumer price index showed airfares were 20.7% higher in April from a year earlier, the cost of intracity transit such as buses and subways rose 5.6%, lodging cost 4.3% more, and eating out got 3.6% pricier.
Changing travel patterns
Despite elevated prices, industry forecasts suggest Americans still want to get away, even if it means replacing long trips with long weekends, choosing destinations closer to home and finding ways to cut costs by cooking meals or using buses and trains instead of driving.
AAA predicted that 45 million U.S. residents would travel at least 50 miles from home between Thursday and Monday for the holiday. The Transportation Security Administration said it expects to screen 18.3 million passengers from Thursday to next Wednesday.
Many households are planning summer vacations but making tradeoffs such as shorter trips or cheaper lodging, according to Bank of America analysts. Mastercard said in a recent report that consumers appeared increasingly focused on value and were adjusting their destinations and timing instead of not going away at all.
