Americans Tighten Their Wallets, Choose Road Trips Over Flights for Domestic Travel

Bloomberg Reports Citing American Automobile Association Data
Memorial Day Car Travelers Reach 20-Year High

As concerns grow over a resurgence of inflation triggered by the global trade war initiated by U.S. President Donald Trump, more Americans are choosing to travel by car instead of by air.

On May 12 (local time), Bloomberg News, citing data from the American Automobile Association (AAA), reported that 39.4 million Americans are expected to travel by car over the Memorial Day weekend (May 26). This represents a 3.1% increase from last year and is the largest number in 20 years. The number of people planning to travel by air is about 3.61 million, an increase of only 1.7%.

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The increased preference for car travel is partly due to gasoline prices falling as oil prices have dropped to their lowest levels in about four years. According to AAA data, as of May 9, the average price of gasoline nationwide in the U.S. was about $3.14 per gallon (approximately 4,400 won), down about 50 cents per gallon from a year ago. The U.S. Energy Information Administration (EIA) predicted that gasoline prices in the U.S. would remain at similar levels in the second and third quarters.

In contrast, domestic airfares in the U.S. for the Memorial Day weekend have risen by 2% compared to the same period last year. The average round-trip ticket price is about $850 (approximately 1.19 million won). Bloomberg explained that this increase was partly due to some low-cost airlines pursuing premium strategies and raising their fares. In addition, recent concerns about aviation safety following several incidents have also negatively impacted air travel demand.

Julie Brinkman, CEO of the vacation rental revenue management company Beyond, said that an increasing number of travelers are choosing destinations such as the Gulf Coast in the southern U.S. and Great Smoky Mountains National Park over international travel. Austin Lin, an analyst at consulting firm Wood Mackenzie, analyzed that consumer spending on travel is declining due to negative sentiment toward the Trump administration's economic policies. Lin explained, "There is an emotional element in the market," and added, "Even if the trade war is resolved quickly, discretionary spending will remain subdued because of the shock the market experienced from the sudden turmoil."

Recently, wealthy Americans whose assets have declined due to the stock market crash are also changing their vacation plans. For Travel Beyond, a luxury overseas travel agency specializing in unique destinations ranging from the Arctic to Africa, the number of inquiries in March fell by 20% compared to the same period last year, and in April, it dropped by another 14%.