Holiday Travel Boom: Over 122 Million Americans Set To Travel During Christmas And New Year Amid Cheaper Gas, Pricier Flights

With the holiday season just around the corner, new data suggests this year-end travel season could prove to be a record-breaking one as the agency expects 122.4 million Americans will travel at least 50 miles from home.

Most Of Them Will Take Road Trips

Data released by the American Automobile Association (AAA) on Wednesday predicted that over 109.5 million Americans will travel by car this year during the Christmas and New Year's holiday season, representing a 2% increase from 2024. "This year, 89% of holiday travelers will take road trips," the report said.

Gas prices fell across the country in comparison with last year. "For the first time in 4 years, the national average dropped below $3 a gallon," the report said, adding that it expects further decreases towards the end of the year. 

As far as air travel is concerned, the agency projected over 8.03 million Americans to take domestic flights. However, ticket prices have increased, with tickets being "7% more expensive this year, averaging nearly $900," the report said.

Trump Relaxes CAFE Norms

The news comes as President Donald Trump announced relaxed Corporate Average Fuel Economy (CAFE) norms in the U.S., a decision that was hailed by Ford Motor Co. (NYSE:F) CEO Jim Farley, who also reaffirmed investment in American-made vehicles.

The move was also touted by Sen. Ted Cruz (R-TX) and Transport Secretary Sean Duffy, who would drive consumer choice and affordability in the country. The lawmakers also hailed the move that would make vehicles safer. The move was criticized by California Governor Gavin Newsom (D).

Thanksgiving Travel

Meanwhile, AAA had forecasted that over 81.83 million Americans would travel at least 50 miles between Nov. 25 and Dec. 1, which would make up the highest number of travelers ever recorded for the Thanksgiving season.

The boom came amid a historic government shutdown, which had severely impacted the aviation industry in the U.S. as lawmakers clashed over Federal funding programs.

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