Labor Day Prices for Hotels and Flights Expected to Rise

AAA predicts not only an increase in travelers this Labor Day, but also higher rates for hotels and flights.

This Labor Day weekend, an estimated 34.7 million Americans will travel at least 50 miles from home. That would mean a 1.3 percent increase in travelers compared to last year, as well as the highest volume of travel for the holiday since the Great Recession, according to AAA’s Labor Day 2014 Travel Forecast. Those aren’t the only figures the organization predicts will rise this Labor Day. AAA also anticipates that hotel rates and airfares will increase.

Travelers can expect rates for AAA Three Diamond lodgings to increase by 6 percent from last year’s, with guests spending an average of $171 per night instead of $161. AAA Two Diamond properties will likely increase rates by 9 percent, jumping to at an average cost of $125 per night.

Meanwhile, the average round-trip, discounted airfare for the top 40 U.S. routes is predicted to rise to $219, which is a $5 increase from last year’s cost. It’s worth noting, however, that only 7.6 percent of Americans plan to fly for the holiday. The vast majority — 85.7 percent — will take to the road instead. Driving is an especially attractive option considering that AAA forecasts a decrease in the price of gas.

“This year, Americans are more optimistic about their financial situation,” said AAA’s COO Marshall L. Doney. “Consumer spending continues to outpace disposable income, indicating that Americans are comfortable using their credit cards to take one last summer vacation this year.”

[Photo: iStock]