Travel is still on, but rising costs reshape summer vacation plans Memorial Day, traditionally a key indicator for summer travel activity, is seeing a shift this year as higher gas prices and airfares disrupt traditional vacation planning. AAA Travel’s vice president, Stacey Barber, told Yahoo Finance that demand for travel remains strong, emphasizing that Memorial Day weekend getaways are a cherished tradition for many Americans. The organization projects 45 million people will travel at least 50 miles from home during the Memorial Day holiday, which runs from Thursday, May 21, to Monday, May 25. This marks a new record, surpassing last year’s 44.8 million travelers. Road trips are expected to dominate, with 39.1 million people planning to travel by car, a slight increase from last year. Barber noted that even with surging gas prices—now averaging $4.53 per gallon, up from $3.19 in 2025—driving remains the more affordable option for most travelers, accounting for 87% of trips. Air travel is also on the rise, though the growth is tempered by earlier bookings. AAA estimates 3.66 million travelers will take domestic flights over the weekend, a modest increase from last year. However, many of these trips were booked before jet fuel prices began to significantly impact airfares. The broader trend reflects a split in travel behavior across income groups. According to the Bank of America Institute’s summer travel outlook, nearly 40% of lower-income households—those earning $66,000 or less—plan to forgo summer travel altogether. Their travel spending has declined year over year, as funds are redirected to cover higher costs for gas and groceries. Brian Sozzi of Yahoo Finance highlighted that “money earmarked for summer travel is now being used for essentials.#yahoo_finance #memorial_day #stacey_barber #bank_of_america_institute #gene_sloan
