Americans are poised to hit the roads, airports and ports in record numbers this year, underscoring the resilience of consumer travel demand even as broader economic uncertainty lingers.
AAA estimates that 122.4 million people will travel at least 50 miles from home during the year-end holiday period, spanning December 20, 2025 through January 1, 2026. The forecast marks a 2.2% increase from last year and establishes a new high, eclipsing the prior record of 119.7 million travelers set in 2024.
The surge reflects a familiar seasonal mix: family reunions, short domestic getaways and long-haul leisure trips to warmer climates. But this year’s increase is being fueled by a combination of easing fuel costs, pent-up demand for experiences and continued strength in leisure travel segments such as cruising.
“Holiday travel looks different for everyone,” said Stacey Barber, vice president of AAA Travel, “but the common denominator remains the desire to get away–whether that’s returning home or discovering someplace new.”
Roads Dominate as Gas Prices Ease
Driving remains the dominant mode of transportation, with 109.5 million travelers expected to travel by car, accounting for nearly nine out of every ten holiday trips. That figure represents a 2% increase from last year and reflects both affordability and flexibility as key advantages of road travel.
Fuel prices are providing a meaningful tailwind. The national average for gasoline has slipped below $3 per gallon for the first time in four years, down from roughly $3.04 during last year’s holiday season. Prices may continue to soften as the calendar turns to 2025, further supporting road-trip demand.
The volume of drivers has safety groups urging caution. December is National Impaired Driving Prevention Month, and AAA, alongside Mothers Against Drunk Driving, is amplifying warnings amid one of the most dangerous periods of the year for road travel.
Last year, AAA responded to more than 860,000 roadside assistance calls during the same holiday window, addressing issues ranging from dead batteries to flat tires and empty fuel tanks. Officials are also reminding motorists to comply with “Slow Down, Move Over” laws to protect roadside workers and first responders.
Rental Cars Tighten in Sunbelt Markets
For travelers opting to rent vehicles, Saturday, December 20, is expected to be the busiest pickup day of the season, according to AAA’s car-rental partners. Demand is strongest in leisure-heavy markets including Orlando, Los Angeles, Atlanta, Miami and Phoenix, with small SUVs emerging as the most popular rental class.
Domestic rental rates are modestly higher, rising about 1% year over year, reflecting steady demand despite easing inflation in other travel-related categories.
Air Travel Hits New High–at a Cost
Air travel is also setting records. AAA projects 8.03 million domestic air passengers, a 2.3% increase from last year and the first time holiday air travel has exceeded the eight-million mark.
The growth comes with higher ticket prices. Based on booking data, the average round-trip domestic airfare is nearly $900, up about 7% from a year earlier. Flights in the days leading up to Christmas are the most expensive, while travel on Christmas Day itself tends to be cheaper. New Year’s Day departures are also commanding premiums as travelers extend vacations into early January.
Cruises and Trains Continue Post-Pandemic Revival
Travel by alternative modes–including buses, trains and cruises–is expected to climb 9%, reaching 4.9 million travelers. The category has expanded 25% since 2019, driven largely by an ongoing boom in cruise bookings as the sector continues its post-pandemic rebound.
Warm Destinations Lead Holiday Bookings
Booking data shows travelers gravitating toward warmer destinations both domestically and abroad. Florida, Southern California and Hawaii top the U.S. list, while Caribbean islands and resort hubs in Mexico are drawing strong interest from travelers seeking sun-filled escapes to close out the year and ring in 2026.
Taken together, the numbers point to a holiday season defined by movement–on highways, in the air and across oceans–signaling that for many Americans, travel remains a priority worth paying for, even as costs rise and economic signals remain mixed.
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