On the Dash:
- A record 122.4 million Americans are expected to travel over the December holiday, with 89% driving.
- Gas prices have fallen below $3 per gallon nationally, encouraging more road trips.
- Air travel costs are up 7% year over year, averaging nearly $900 for a domestic round-trip ticket.
The majority of Americans traveling this holiday season will opt to drive rather than fly as gas prices fall to their lowest levels since the pandemic. While driving has traditionally been the most affordable option, this year’s drop in fuel costs is expected to push even more travelers onto the road.
A record number of 122.4 million Americans are expected to travel at least 50 miles from Dec. 20 to New Year’s Day, according to the American Automobile Association (AAA), a 2.2% year-over-year increase. About 109.5 million of those travelers will drive, accounting for roughly 89% of all holiday travel and marking a 2% year over year increase. Air travel is also expected to hit a milestone, with 8.03 million Americans taking domestic flights during the holiday period, up 2.3% from 2024 and the first time year-end air travel has exceeded 8 million.
Gas prices are a significant factor shaping this year’s travel decisions. The national average for a gallon of gas has dipped below $3 for the first time in four years, according to AAA. In Texas and Arkansas, prices are closer to $2.50 per gallon. The West Coast, where gasoline is over $4 per gallon, is boosting the national average. Oklahoma currently has the cheapest gas in the country, with the average price under $2.50.
Lower fuel costs are encouraging more people to drive, but the rising cost of air travel is also influencing traveler behavior. The price of domestic round-trip flights has increased 7% from a year ago, with the average ticket nearing $900.
