That last summer road trip is about to cost more than many travelers expected.
The national average for regular gasoline reached about $4.14 per gallon on September 3, according to AAA’s latest fuel report. If that price holds through the holiday, this will be the first Labor Day with the national average above $4 per gallon.
Flying is not necessarily the easy escape. AAA’s booking data also shows higher prices for many popular domestic flights and hotels. The practical takeaway is simple: whether you are driving or flying this weekend, build more room into your travel budget.
How expensive is Labor Day gas this year?
AAA says the national average is approximately $4.14 per gallon. That is about 95 cents more than the $3.19 national average recorded around Labor Day last year.
The previous Labor Day record was $3.82 per gallon, set in 2012. This year’s price is already roughly 32 cents higher.
What does that mean for an ordinary road trip? Imagine your vehicle gets 25 miles per gallon and you plan to drive 500 miles round trip. You would use about 20 gallons of gas.
At $4.14 per gallon, that fuel would cost approximately $83. At last year’s $3.19 average, the same amount would have cost about $64. That is nearly $20 more for one 500-mile trip.
Your actual total will depend on your vehicle, route, local gas prices, traffic and how much driving you do after arriving.
Why are gas prices so high right now?
Gas prices usually begin easing after the summer driving season. This year has been different.
AAA says expensive crude oil and continued volatility around the Strait of Hormuz have kept prices elevated. Crude oil is the basic material used to make gasoline, so when oil becomes more expensive, drivers often see higher prices at the pump.
Prices also vary considerably by state. The $4.14 figure is a national average, not the exact amount every traveler will pay. Check prices near your home and along your route before calculating your total.
Flights and hotels are costing more too
Drivers are not the only travelers facing a more expensive weekend.
According to AAA’s Labor Day booking analysis, the average domestic round-trip flight is about $750, up 2% from last year.
Flights to the most popular Labor Day destinations are nearly 20% more expensive, averaging about $790. Those destinations include Seattle, Orlando, Boston, Denver and New York.
Domestic hotel rates are also higher. AAA found an average nightly rate of approximately $260, about 12% more than last year. International hotels in popular destinations are averaging around $250 per night, an increase of about 15%.
There are a few bright spots. International airfare is averaging about 4% less than last year, while cruises leaving from U.S. ports are approximately 4% cheaper. Those figures reflect AAA bookings, though, so they do not guarantee that the same prices remain available for a last-minute reservation.
When will Labor Day traffic be worst?
The busiest road periods are expected after work on Thursday and during the day on Friday. Holiday travelers will be joining normal weekday commuters, which can turn a familiar drive into a much longer one.
Leaving one or two hours earlier can help. If your schedule is flexible, avoid beginning a long drive in the middle of the afternoon.
Traffic also affects fuel use. Sitting in congestion or taking a lengthy detour can increase the amount of gas you need, so the price displayed at the pump is only part of the cost.
How can travelers keep the cost down?
- Check prices before leaving. Compare stations near home and along the route instead of waiting until the tank is nearly empty.
- Fill up before entering expensive tourist areas. Gas stations next to major attractions and busy highway exits may charge more.
- Avoid the busiest driving windows. Less time sitting in traffic can mean less fuel burned.
- Check your tires. Proper tire pressure helps your vehicle use fuel more efficiently and reduces the chance of a holiday breakdown.
- Recheck flight costs before making a last-minute switch. A cheap-looking fare may become expensive after baggage, seat and transportation fees.
- Review the whole trip budget. Include parking, tolls, airport transportation and hotel fees—not only airfare or gasoline.
The bottom line
This is shaping up to be an unusually expensive Labor Day weekend. Gas prices are on track to break the holiday record, while many popular domestic flights and hotel stays also cost more than they did last year.
That does not necessarily mean you should cancel a planned trip. It does mean a quick budget check is worth doing before you leave. Drivers should calculate the likely fuel cost and avoid peak traffic when possible. Flyers should look beyond the ticket price and include baggage, parking and transportation in the real total.
The surprise this year is not simply that travel costs more. It is that there may be no obviously cheap alternative: driving, flying and staying overnight have all become more expensive at the same time.
