As Thanksgiving approaches, millions of people are getting ready to hit the road despite the potential for storms in various parts of the country. AAA is predicting a record-breaking number of travelers this holiday season, exceeding last year’s count by 1.7 million. One of the factors contributing to this increase is the lower gas prices that are currently in effect.
Matt Smith, an energy analyst for Kpler, recently discussed the reasons behind the affordability of gas and what travelers can expect during the upcoming holiday season. He mentioned that oil prices are around $70, resulting in a national average of $3 at the pump, which is good news for those planning road trips. In Texas, gas prices are even lower, at $2.65 per gallon. This favorable pricing is expected to encourage more people to travel by car during Thanksgiving.
AAA is projecting that 80 million travelers will journey at least 50 miles over the Thanksgiving break, with a majority of them (71 million) opting for road trips. This figure surpasses the previous record set in 2019 by 1.3 million. Despite the potential for inclement weather, it seems like this Thanksgiving will see a significant number of people on the move.
When it comes to air travel, a similar trend is observed, with record volumes anticipated. The Transportation Security Administration (TSA) expects a high number of travelers passing through airports, while AAA estimates that 6 million individuals will be flying this holiday season. Although domestic flight tickets are pricier compared to last year, international flights are more affordable.
The record-breaking numbers in travel can be attributed to economic growth, declining inflation, and strong income gains. The current gas prices, hovering around $3 per gallon nationally, are a significant factor incentivizing people to opt for road trips. Interestingly, diesel prices are much lower than they were a year ago, which benefits the cost of transporting goods.
Despite global geopolitical tensions, the stability of oil prices around $70 per barrel could lead to further decreases in gas prices. However, uncertainties in the Middle East, particularly the ongoing tensions between Israel and Iran, remain a concern. Any disruption in oil supply due to geopolitical conflicts could lead to price increases at the pump.
Overall, the holiday travel season is expected to be busy, with many people choosing to hit the road or take to the skies. Lower gas prices and favorable economic conditions are driving this trend. However, potential geopolitical risks could impact energy prices in the future. If you appreciate the information provided in this article, please consider supporting the organizations behind the reporting by making a donation to help sustain their work. Your contribution helps ensure the continuation of valuable news coverage on platforms like texasstandard.org and KUT.org. Thank you for considering a donation today.
