AAA: Cheaper gas, deals to boost holiday travel

— -- The USA will kick off the summer vacation season with slightly more people taking Memorial Day trips this year than in 2008 as lower gas prices and abundant travel bargains unleash the nation's "pent-up demand" for travel, according to a report from leisure travel organization AAA.

AAA says the recent swine flu scare isn't forcing people to cancel travel plans. The organization projects a 1.5% increase in the number of people taking a trip of at least 50 miles — from 31.9 million in 2008 to 32.4 million.

"It's not up by a lot, but anything that's up compared to last year is pretty good news in this economy," says Robert Darbelnet, AAA's president and CEO.

He says Memorial Day is "a bright spot" in the summer vacation season because travel is expected to remain flat during the rest of the summer, except possibly over the Independence Day and Labor Day holidays. "People are not going to give up the opportunity to spend time with friends and family over the holiday," he says.

The AAA report, based on research by IHS Global Insight, a Boston-based economic research and consulting firm, says that 27 million holiday travelers — nearly 83% of the total — will vacation by automobile, up from the 26.3 million last year when gas prices were among the highest on record. AAA doesn't expect the price of a gallon of self-serve regular gasoline, currently averaging $2.25 a gallon, to top $2.50 by Memorial Day.

The average distance traveled will be about 620 miles and average spending is expected to be $1,052 per family, AAA says.

About 2.1 million Americans — 7% of the total — will travel by air over the holiday weekend, and 3.3 million — 10% — will go by rail, bus and boat or ship, AAA says. Trips by air will drop by 1% from last year, AAA predicts.

David Castelveter, spokesman for the Air Transport Association, which represents the major airlines, says "it's safe to say you will see a decline based upon reduced demand and an ailing economy."