BUFFALO, N.Y., August 31, 2009 – AAA is projecting 39.1 million travelers (12.8 percent of the U.S. population) are expected to take a trip of 50 miles or more away from home this Labor Day holiday weekend, a decrease of 13.3 percent from 2008 when Labor Day travel was the highest this decade.

AAA said the projected year-over-year decline in leisure travel is heavily impacted by when Labor Day falls on the calendar. In 2008, Labor Day fell on September 1st and allowed many families to take advantage of the long weekend before a new school year started. This year, many children will return to school before Labor Day on September 7th.

Last year, 45.1 million Americans traveled during the Labor Day holiday weekend period; the most this decade. Despite this year’s projected decline of 6 million travelers, AAA said it expects more Americans to travel this holiday than were projected to travel over this year’s 4th of July holiday weekend. AAA projected 37.1 million Americans would travel during the Independence Day holiday. This will also be the third strongest weekend for Labor Day travel this decade. The second busiest year was 2003 when 41.6 million Americans took a Labor Day weekend trip.

“AAA’s forecast indicates that the number of travelers intending to travel over the Labor Day weekend has more to do with the calendar than the economy,” said Tom Chestnut, President/CEO of AAA Western and Central New York. “Although the number of travelers will be down from one year ago, AAA expects this Labor Day weekend to be busier than the Fourth of July travel period, and that’s a positive sign.”

Auto travel dominates

AAA projects 32.9 million Americans will travel by automobile this year, representing 84 percent of all travelers; an 11.8 percent decline compared to the 37.3 million who took a road trip in 2008.

Despite lower airfares, only 1.5 million Americans (four percent of all travelers) will take to the skies this Labor Day weekend, a 20 percent decline from the 1.8 million passengers that traveled by air last year. The significant drop is attributed to declining capacity on airlines and the reluctance of travelers to take longer trips due to the school year calendar.

An estimated 4.8 million Americans (12 percent of travelers) will travel by other modes of transportation including rail, buses and watercraft, a decrease of 20.5 percent from 2008.

Gasoline prices nearly one dollar lower

This year, gasoline prices will average close to $1.00 lower compared to last year. In 2008, the nationwide price of a gallon of self-serve regular gasoline averaged $3.68 during the Labor Day weekend. Currently, the nationwide average is $2.61, down $1.07 compared to last year.

Travelers in New York State can expect to pay $2.83 per gallon on average. In the Buffalo/Niagara region, the average price of a gallon of gasoline is $2.79, compared to $3.91 a year ago. Rochester area motorists are currently paying $2.77, compared to $3.85 last year. In the Syracuse area, the current average is $2.76 a gallon, compared to $3.78 in 2008.

Lodging and airfare costs drop, car rental rates rise

According to AAA’s Leisure Travel Index, the lowest average published airfares over the Labor Day holiday weekend are expected to decrease 17 percent from last year.

Hotel rates for AAA Three Diamond and Two Diamond lodgings are expected to be 12 percent less than last year with travelers spending an average of $137 per night for Three Diamond properties and $101 per night for Two Diamond lodgings.

Car rental rates are up seven percent with consumers paying an average of $43 per day compared to $40 a year ago.

Average spending $968

Labor Day travelers expect to spend approximately $968 per household this upcoming holiday weekend. Transportation and accommodations will account for 47 percent of trip spending, while food and beverage will absorb another 22 percent of the holiday budget. Shopping, entertainment and recreation will account for 27 percent of spending on average. The remaining four percent was categorized as “other.”

Travel distance averages 645 miles

The average round trip journey for the Labor Day weekend will be 645 miles. More than one third (37 percent) of travelers will stay relatively close to home, venturing only 250 miles round trip or less. Slightly more than one third (34 percent) of weekend travelers will log between 251 and 700 miles round trip, while 28 percent will travel over 700 miles.

In cooperation with AAA, IHS Global Insight has developed a unique approach to forecasting actual travel that explicitly considers current economic conditions, past Labor Day holiday travel trends and behavior, and the recent assessment of pre-holiday American travel intentions derived from a survey of 1,350 American households. For the purpose of this forecast, the Labor Day holiday travel period is defined as Thursday, September 3, 2009 through Monday, September 7, 2009.

As Upstate New York’s largest member services organization, AAA provides nearly 880,000 members with travel, insurance, financial and automotive related services. Since its founding in 1900, AAA has been a leading advocate for the safety and security of all travelers. Visit AAA at www.AAA.com.