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Memorial Day is typically a barometer for summer travel.
This year, higher gas prices and airfares have thrown a monkey wrench into vacation plans.
“Demand remains strong,” Stacey Barber, vice president of AAA Travel, told Yahoo Finance. “Travel is personal, and for many Americans, Memorial Day weekend getaways are a tradition.”
AAA projects 45 million Americans will travel at least 50 miles from home for Memorial Day between Thursday, May 21, and Monday, May 25.
The outlook sets a new Memorial Day record. It’s a notch higher than last year, when 44.8 million people traveled for the holiday. Around 39.1 million people are traveling by car, up slightly from last year.
“Road trips are still the cheaper alternative to flying,” Barber said. Even with the surging gas prices, driving vacations will make up 87% of the share of travelers next week. Last Memorial Day, the national average for a gallon of regular was $3.19, according to AAA data. This year it’s $4.53.
Air travel is also growing. AAA projects 3.66 million travelers will take domestic flights over Memorial Day weekend, a small bump year over year. One big caveat: Most of those trips were booked before rising jet fuel prices started impacting airfare.
No summer travel plans vs. juiced-up travel spending
When you look at travel plans across America, it’s a split-screen.
Nearly 4 in 10 lower-income households — those with $66,000 or under in household income — are likely to have no summer travel plans, per Bank of America Institute’s new summer travel outlook report. And Bank of America card data shows their travel-related spending has dropped year over year in 2026.
“Money that was earmarked for summer travel is now being earmarked for higher gas and food prices,” Brian Sozzi, Yahoo Finance’s executive editor, noted in his recent column.
To make ends meet on a daily basis, many Americans are pulling from their savings and leaning on credit cards. The US personal savings rate has dropped to 3.6%, the lowest level since 2022, according to the Federal Reserve Bank of St. Louis.
On the other hand, for now, middle- and higher-income households, with $66,001 to $130,000 and $130,000 and above, are ramping up travel spending, per the Bank of America Institute report.
Earlier this year, despite concerns about the grim job market, travel searches were rising, air fares were falling, and more people were looking for international trips.
“This summer, travel isn’t slowing down — it’s being reshaped,” Melanie Fish, Expedia Group’s travel expert, said. “As major global events and rising costs influence decisions, travelers are either staying closer to home or seeking out destinations where they can get more for their money.”
