AAA predicts more than 53.4 million people expected to travel, the highest single-year increase since 2005.
Higher gas prices are expected to further dampen travel, though those who do plan to travel over the holidays expect to drive.
In some hot vacation spots this July Fourth weekend, rental car prices are averaging between $306 and $436 per day. KAYAK and Turo held a sweepstakes to give away four carshares in the U.S. cities with the highest demand for rental cars.
According to a recent survey by Hertz, more than 80% of respondents plan to take a road trip this summer. Of those planning to travel, 65% said that a rental car was the mode of transportation that made them feel the safest.
Domestic travel and road trips remain the biggest drivers of travel recovery. Two new budget airlines, Avelo Airlines and Breeze Airways are meeting demand at smaller airports and underserved routes.
A survey gauging consumers' comfort levels with various modes of travel found that 38% of respondents felt "very comfortable" or "somewhat comfortable" when renting a car. Road trips leads the list, while flying internationally is at the bottom.
Most Americans who decide to travel will do so by car, with road trips accounting for 96% of holiday travel.
Despite a rise in COVID-19 cases, the Transportation Security Administration screened at least 1 million people on four of the last 10 days through Sunday. That's still only half the volume from the same period last year.
An imbalance of cars and the high cost to move them to where they’re needed, rentals booked for low rates in April, and higher incidences of fraud and damage plague the shift to local rentals during the COVID-19 pandemic.
While Portuguese tourists can help revive the hotel and restaurant industry, car rental relies primarily on foreign tourists.
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