Tennesseans are expected to travel in near-record numbers for the year-end holiday period (from Saturday, Dec. 21 to Wednesday, Jan. 1). AAA predicts 2.7 million Tennesseans will travel 50 miles or more from home. That’s over 62,000 more travelers than last year and 62,000 travelers shy of the record high, set in 2019.

Nationwide, AAA expects 3 million more travelers than last year.  An estimated, 119.3 million people will travel 50 miles or more. This narrowly surpasses the previous record set in 2019 by 64,000 travelers.

“Travelers should expect the roads, airports and cruise terminals to be more crowded than normal,” said Debbie Haas, Vice President of Travel for AAA – The Auto Club Group. “So, finalize your travel plans now and give yourself extra time to get to your destination. We also suggest travel insurance, which provides assistance in the event winter weather or something unexpected interferes with your plans.”

Factors influencing this year’s travel forecast:

•     Travel volume is being driven by consumer spending as inflation continues to moderate.

•     Strong employment continues to drive rising wages and with inflation leveling off, consumers are expected to spend nearly 5% more than last year as incomes rise at a similar level.

•     Economic growth continues to remain steady, with Q4 real GDP growth expected at 2.0% in Q4 compared to last year.

By Car:  AAA expects 2.5 million more people on the roads this year. Nationwide, an estimated 107 million will take a road trip of 50 miles or more. That’s just shy of the record of 108 million road travelers – set in 2019.

Road travel is expected to be the second-highest on record in Tennessee. More than 2.5 million Tennesseans are forecast to take a road trip. That’s 52,000 more Tennessee road trippers than last year. 93% of holiday travelers will drive to their destinations, making it the most popular way to travel.

“Many travelers, particularly families with young children, prefer the flexibility and lower cost that road trips provide,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Gas demand in December goes down as the weather gets colder, more people work remotely, and holiday shoppers purchase their gifts online versus in person.”

Gas prices are expected to be cheaper than last year’s levels. During the last two weeks of 2023, Tennessee gas prices averaged $2.78 per gallon. During that time, the state average ranged from $2.75 per gallon to a high of $2.82/g. Currently, Tennessee drivers are currently paying $2.65 per gallon. To view updated national, state, and metro area gas price averages, visit GasPrices.AAA.com.

AAA car rental partner Hertz says Denver, Las Vegas, Los Angeles, Miami, Oahu, Orlando, Phoenix, and Tampa are the cities displaying the highest rental demand for the holidays. The busiest car pick-up days are expected to be Friday, December 20 and Saturday, December 21. The busiest time for rental returns is expected to be the weekend and Monday after Christmas. The average length of rental is one week.

By Air: Nationally, AAA expects air travel to set a new record this holiday season. Nearly 7.9 million Americans are forecast to take at least one domestic flight. That number surpasses the previous record of 7.5 million air travelers last year. AAA booking data shows flights are 4% more expensive this holiday season compared to last year. The average domestic ticket is $830. International flights are 13% more expensive, averaging $1,630 a ticket.

By Other Modes: The number of Americans traveling by bus, train, and cruise this holiday season is up nearly 10% compared to last year. AAA expects 4.47 million people will travel by other modes. That number is the highest it’s been in 20 years. Cruise bookings out of domestic ports are up 37% compared to last holiday season. Cruising is popular this time of year as many families enjoy celebrating the holidays aboard a ship full of activities and food.