AAA: Cheaper gas, travel deals will boost Memorial Day trips

— -- The number of Americans taking Memorial Day trips will rise slightly over last year, thanks to lower gas prices and abundant travel bargains that are spurring more families to hit the road, according to a new report from auto club AAA.

The organization projects a 1.5% increase in the number of travelers taking a trip of at least 50 miles — from 31.9 million in 2008 to 32.4 million this year.

"Last year, soaring gas prices and a deteriorating economy resulted in far fewer trips being taken than had been forecasted," said Robert Darbelnet, AAA's president and CEO. "The good news is sharply lower gasoline prices and plentiful travel bargains have Americans feeling better about taking a road trip this summer, which should help tourism-based economic activity throughout the nation."

If this year's improved travel forecast materializes, the number of travelers taking Memorial Day vacations would still be well below the 35.3 million people who took trips in 2007.

AAA says that 27 million holiday travelers — nearly 83% of the total — will vacation by automobile, up from the 26.3 million people who paid some of the highest gas prices on record to travel by motor vehicle last year. The auto club does not expect the price of a gallon of self-serve regular gasoline, currently at $2.25 a gallon, to average more than $2.50 per gallon.

"While the 2009 numbers represent a slight rebound from the depressed 2008 travel holiday (down 9.6%), this does not signal a return to the robust growth experienced in 2003-2005," says the AAA report, which is based on research conducted by IHS Global Insight, a Boston-based economic research and consulting firm. "The economy continues to weight heavily on leisure travel. Unemployment reached 8.5% in March, consumer sentiment has improved only slightly and remains at recessionary levels, and March home sales continued to disappoint."

AAA says about 2.1 million Americans — 7% — will travel by air over the holiday weekend, and some 3.3 million — 10% — will go by rail, bus and watercraft. The report also indicates that the swine flu scare isn't forcing people to cancel travel plans.