The Effects of the Economic Turmoil Affects 4th of July Travel
AAA expects 37.1 million vacationers that will travel more than 50 miles away from their home this July 4, still 1.9 percent lower than last year.
Gas price may have slightly increased again, but the rise halted this Monday. Gasoline prices are only $2.68, down from last year’s $4, many are still thinking about taking a well deserved vacation this incoming holiday weekend.
This may be due to the 9.4 percent unemployment rate that is even expected to reach 10 percent very soon. American net worth even fell a whopping $1.3 billion during the first 3 months of 2009. Many homes would not want to risk spending extra money for leisure if their source of income is not that stable. They would rather enjoy some quiet time at home.
Even with the slight decline, travel is not as worse as last year when there was a 10.5 percent fall. AAA even says that majority of this year’s vacationers were those who suppressed themselves to travel last year.
Travel may be gaining back its momentum while households try to regain their spending routine.
AAA forecasts that 88 percent of the travels this year, or 32.6 million trippers, will go by car. This is 2.6 percent lower than last year. But the decline may be attributed to more reasonable plane ticket prices that the 2 million travelers availed. Air travel is even expected to increase by 2.9 percent.
AAA then surveyed 2,700 homes and found out that travel per household costs $1,160. 50 percent of this budget may go to transport and accommodations, while 20 percent goes to food and drinks. The rest may be allotted for leisure, shopping and entertainment.
