America's first Labor Day was celebrated on Sept. 5, 1882 in New York City, where thousands of factory union workers gathered for a parade to celebrate the contributions they have made to America’s economic strength, according to the U.S. Department of Labor.
As travelers prepare for the last long weekend of summer, an AAA online survey conducted in early August found that 32% of Americans will travel for Labor Day, and 82% of those travelers will go by car.
What To Know: Those traveling should be prepared for the impact rising cost will have on their discretionary spending, as domestic travel has increased 22% year-over-year and international travel has increased by a whopping 104%, per AAA.
AAA found that the average price for airfares have increased by almost 20% since last year, which can mostly be attributed to the rise in crude oil prices.
Protests by hundreds of airline pilots kicked off again Thursday, the third time this year, which could add to the rising ticket costs as well as flight cancellations and delays.
Delta Air Lines (NYSE:DAL) is expecting 2.9 million passengers over the holiday weekend, up from 2.5 million last year, but still short of the 2019 levels of 3.1 million passengers.
Furthermore, the average hotel room is estimated to be $233 a night, up almost 53% over the last two years, which could help give rise to online vacation rental sites such as Airbnb Inc (NASDAQ:ABNB).
Glenn Fogel, CEO of Booking Holdings Inc (NASDAQ:BKNG) said: “We reached another milestone in our company’s recovery from the impact of the pandemic, with room nights for the second quarter surpassing 2019 levels for the first time.”
Additionally, AAA expects to rescue over 500,000 motorists across the country from Sept. 1-6, up 10% from the previous year.
Gas prices have fallen since the $5 per gallon average recorded in June. This should ease price pressures on other services and goods this weekend. Friday's national average gas price is $3.809 per gallon, according to AAA.
Go To: Ontario International Airport expects busy Labor Day as summer travel season concludes
The Last Word: Falling gas prices should also positively impact the car rental industry, as AAA found the average car rental price per day is $89, up almost 32% since 2020.
As travel returns to pre-pandemic levels, companies such as Avis Budget Group Inc (NASDAQ:CAR) and Marriott International Inc (NASDAQ:MAR) could expect extended healthy earnings in the second half of the year, as second-quarter earnings beat estimates by 39.1% and 16.8%, respectively.
Top Domestic Travel Locations:
Orlando, Florida
Las Vegas, Nevada
Top International Travel Locations:
Vancouver, Canada
London, England
Dublin, Ireland
Photo via Shutterstock.
