Auto Rental News
MenuMENU
SearchSEARCH

Holiday Travel Expected to Reach Record Levels

BURNSVILLE, Minn. -- With two holiday weekends this December, AAA anticipates Christmas-New Year's holiday travel to hit its highest level ever, with an estimated 62.7 million Americans travelin...

by Staff
December 16, 2004
2 min to read


BURNSVILLE, Minn. -- With two holiday weekends this December, AAA anticipates Christmas-New Year's holiday travel to hit its highest level ever, with an estimated 62.7 million Americans traveling 50 miles or more from home. This repesents a 3% increase over last year's 60.8 million travelers.

"With Christmas and New Year's Day both falling on Saturdays, many people will make weekend getaways," said Shannon Swanson, AAA Minnesota/Iowa spokesperson. "There is a downside to having both holidays fall on weekends, though. Last year provided separate weeklong windows for typical Saturday-to- Saturday vacations built around either Christmas or New Year's. This year, with just one week that includes the two holidays, competition for space at beach destinations, on cruise ships and at ski resorts has been much greater than last year."

Ad Loading...

Approximately 50.9 million travelers (81% of all holiday travelers) expect to go by motor vehicle, a 2.9% increase from the 49.4 million who drove a year ago. Another 8.6 million (14% of holiday travelers) plan to travel by airplane, up 3.5% from the 8.3 million that flew last Christmas-New Year's holiday. A projected 3.2 million travelers (5%) will go by train, bus, or other mode of transportation, up from 3.1 million a year ago.

Holiday auto travelers will find gas prices nationwide currently averaging $1.83 per gallon, down 14 cents during the last month, but about 36 cents higher than a year ago.

Other holiday travel costs are down from last year, with airfares down 6% from last year, reflecting expanded service by discount airlines, and hotel rates bucking recent price increases, falling 1.4% from last year. Rental car rates increased slightly, up 2.3% from 2003.

The greatest number of holiday auto travelers will originate in the Southeast with 13.3 million, followed by the West, 12.9 million; Midwest, 10.3 million; the Great Lakes, 8.0 million; and the Northeast, 6.4 million.

The Southeast is expected to produce the largest number of air travelers with 2.5 million, just ahead of the West, with 2.4 million. They are followed by the Northeast, 1.7 million; Midwest, 1.1 million; and Great Lakes with 900,000.

Ad Loading...

Cities are the expected destination for 40% of Christmas-New Year's travelers, followed by towns/rural areas, 29%. Oceans and beaches are popular, getting 15% of travelers, followed by mountain areas, 7%; 2% for lake areas; and 1% each for theme/amusement parks and state/national parks. Another 4% responded with other, and 1% said they didn't know.

Research for holiday travel is based on economic modeling and a national telephone survey of 1,397 adults by the Travel Industry Association of America.


More Rental Operations

thumbnail of Chris Brown and Mike DeLorenzo with title Time to Rethink Rental Categories?
Rental Operationsby Chris BrownSeptember 8, 2026

Is It Time to Rethink Rental Categories?

As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.

Read More →
Woman receiving car rental rates on computer from AI agent
Rental OperationsSeptember 1, 2026

Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental

Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)

Read More →
map of globe with regional corporate car rental rates
Rental Operationsby StaffAugust 25, 2026

U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%

Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.

Read More →
Ad Loading...
Sixt H1 financial results
Rental Operationsby StaffAugust 14, 2026

Sixt Revenue Tops $2.4 Billion in First Half of 2026

Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.

Read More →
Bobby Klyce in memoriam image
Rental Operationsby Chris BrownAugust 13, 2026

In Memoriam: Bobby Klyce, Avis Licensee Legend

The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.

Read More →
Vibe coding webinar promo image
Rental Operationsby StaffAugust 12, 2026

How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]

A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.

Read More →
Ad Loading...
Globe image with Text: GBTA Business Travel Forecast

Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027

Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.

Read More →
Car rental sign with financial graph in background
Rental Operationsby Chris BrownAugust 2, 2026

Avis Cuts Fleet as Summer Demand Trails Expectations

Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.

Read More →
car rental booking engine on computer screen with text: Bookings aren't the whole story
Rental OperationsAugust 1, 2026

Why Bookings Are Only the Start of the Rental Day

A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.

Read More →
Ad Loading...
Rental Operationsby Chris BrownJuly 31, 2026

This Is the Oldest Car Rental Advertisement You’ll Ever See

This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.

Read More →
Ad Loading...