Americans to Pack Roads/Airports for Labor Day Weekend
On June 28, 1894, President Grover Cleveland made Labor Day a federal holiday to be celebrated on the first Monday in September. The goal was simple – to formally recognize the contributions and achievements of the American worker.
Today, Labor Day also marks the unofficial end of summer. As schools and colleges start their fall session, millions of Americans and their families use the Labor Day holiday weekend for one last summertime road trip to their favorite destination of choice.
This year, the American Automobile Association (AAA) projects one of the busiest Labor Day travel weekends on record. Roughly 87% of travelers will go by car. Traffic is expected to peak on Thursday and Friday as many Americans look to get a jump start on their Labor Day festivities. Transportation analytics provider INRIX warns travelers that the heaviest road congestion will be on Thursday from 2 p.m. to 7 p.m. and on Friday from noon to 8 p.m. On Monday, INRIX expects the heaviest traffic to be from 2 p.m. to 5 p.m. as Americans make their way home from the holiday weekend.
Unfortunately, Americans should expect to pay more for gasoline. According to AAA, the average national price for a gallon of regular gas is $4.12, up $0.93 (29%) from last year.
The Transportation Security Administration (TSA) also projects a record number of air travelers this Labor Day holiday. Between Thursday, Sep. 3 and Wednesday, Sep. 9, the TSA projects more than 17 million air travelers will flood the nation’s airports. This is up 8.5% from last year. The TSA warns the peak day for air travel will be Friday, when roughly 2.9 million passengers are expected to travel. Chicago-based carrier United Airlines announced it will carry 3.4 million passengers between Thursday and Tuesday, up 300,000 (9.6%) from last year.
AAA states the average price for a domestic round-trip ticket over the Labor Day holiday will be $750, up 2% from last year. However, flights to the more popular domestic destinations – such as Seattle, Orlando and Boston – will average around $800 per round-trip ticket, 20% higher from last year. International flights this Labor Day holiday are expected to be 4% cheaper with an average price of $1,240 per round-trip ticket. The top international destinations are Rome, Vancouver and London.
Labor Day travelers should also brace for higher hotel prices. According to AAA, domestic hotel bookings are projected to be 9% higher than last year. For international hotel bookings, the price increase is expected to be 12%.
AAA notes one of the better travel values this Labor Day holiday is being offered by the cruise ship industry. On average, cruises departing U.S. ports are expected to be 4% cheaper from last year. The average cost per cruise booking is $2,700. However, AAA states travelers continue to view cruises favorably for their convenience and value-for-money. Cruise bookings often include the cost of accommodation, transportation, dining and entertainment.
Whether you’re staying local or you find yourself among the millions of holiday travelers, I wish you all a very happy and festive Labor Day weekend!
Mark M. Grywacheski, Investment Advisor
Quad Cities Investment Group is a Registered Investment Adviser.
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