Thanksgiving Travel to Hit Record Levels
According to the American Automobile Association (AAA), a record-high 79.9 million Americans are expected to travel at least 50 miles during the Thanksgiving travel period. The AAA defines this travel period as the Tuesday before Thanksgiving Day through the following Monday. The 79.9 million projected travelers are up 1.7 million (2.1%) from last year and is 2 million more than the 2019 pre-pandemic level.
As one might expect, the most popular mode of transportation will be via automobile, which will account for 89.8% of all travelers. This translates to a record 71.7 million Americans piling into the family truckster and heading out on the open road. The second most popular travel mode (7.3%) is via air. A record-high 5.8 million Americans will fly domestically over the Thanksgiving travel period, up 2% from last year.
Thanksgiving drivers this year will benefit from lower gas prices. During last year’s Thanksgiving holiday, the national average for a gallon of regular gas was $3.26, according to AAA data. Currently, the national average is around $3.07 per gallon.
Gas prices vary extensively from one state to the next. Even within an individual state, the price you pay at the pump tends to be much more in big cities than in rural areas. Illinois has the tenth highest average price in the nation at $3.19 per gallon, $0.12 above the national average. In Chicago, the price skyrockets to $3.60 per gallon.
Iowa, by comparison, has the tenth lowest average price at just $2.75 per gallon, a wallet-friendly $0.32 cheaper than the national average. For perspective, the highest prices for a gallon of regular gas in the land go to perennial high-cost states Hawaii ($4.57) followed by California ($4.45). Oklahoma wins the award for the cheapest gas prices at just $2.57 per gallon.
Here in the Quad Cities, as is usually typical, the price you pay for a gallon of gas is heavily dependent on which side of the river you fill up on. On the Illinois side, the average price for a gallon of regular gas is $3.21. However, you can save some big bucks by filling up on the Iowa side of the river, which is $0.39 cheaper at just $2.82 per gallon. If you have a larger size car with an 18-gallon tank, like an SUV, that’s a savings of around $7.02 per fill up. For smaller cars with a 12-gallon tank, you’ll save around $4.68 per fill up.
For those of you who will be in the driver’s seat during your Thanksgiving road trip, when you choose to travel is also an important consideration. According to INRIX, a provider of transportation data and analytics, the worst time to travel will be on Tuesday and Wednesday afternoons. INRIX recommends Thanksgiving Day as the best travel day as most roads, highways and interstates will typically have less traffic. For your return tip home, INRIX suggests early Sunday morning to avoid traffic congestion.
Whether you’re staying local or you’ll find yourself among the millions of holiday travelers, I wish you all a very Happy Thanksgiving!
Mark M. Grywacheski, Investment Advisor
Quad Cities Investment Group is a Registered Investment Adviser.
This material is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Quad Cities Investment Group and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Quad Cities Investment Group unless a client service agreement is in place.
