AAA: Nearly 44 million Americans plan to travel this Memorial Day weekend
Drivers to hit record 38.4 million, highest since AAA began tracking in 2000
By Vishnu Rageev RMay 15, 2024
APPROXIMATELY 43.8 MILLION Americans will travel 50 miles or more from home, surpassing pre-pandemic figures, according to a forecast by AAA. This represents a 4 percent increase from last year and approaches the 2005 record of 44 million Memorial Day weekend travelers.
A record 38.4 million are expected to drive, marking the highest number since AAA began tracking in 2000.
“We haven’t seen Memorial Day weekend travel numbers like these in almost 20 years,” said Paula Twidale, AAA Travel’s senior vice president. “We’re projecting an additional one million travelers this holiday weekend compared to 2019, which not only means we’re exceeding pre-pandemic levels but also signals a very busy summer travel season ahead.”
The number of drivers this year is up 4 percent compared to last year and 1.9 percent higher than in 2019, the auto club said. Traveling by car is appealing for many people because of the convenience and flexibility it provides.
While gas prices remain stable compared to last year, hovering around $3.57 per gallon, AAA cautioned that they could rise further. Fluctuating oil prices, influenced by geopolitical tensions in the Middle East and Ukraine, could exert pressure on oil markets.
AAA's car rental partner Hertz identified Orlando, Denver, Atlanta, Boston and Las Vegas as the cities experiencing the highest rental demand. The busiest pick-up days are projected to be Thursday, May 23, and Friday, May 24, according to Hertz.
AAA anticipates 3.51 million air travelers this holiday weekend, marking a 4.8 percent increase from last year and a 9 percent surge compared to 2019. This will be the busiest Memorial Day weekend at airports since 2005, when 3.64 million flew for the holiday following the travel industry's post-9/11 rebound. Air ticket prices for Memorial Day weekend are comparable to last year, with AAA booking data indicating a 1 percent to 2 percent increase in prices for domestic flights.
Nearly two million people are expected to travel by other modes of transportation, including buses, cruises, and trains, AAA said. It projects 1.9 million people will take these other modes of transportation, an increase of 5.6 percent compared to last year.
“This category took the biggest hit during the pandemic with fewer people taking public transportation or not cruising at all,” Twidale added. “Now, five years later, we’re back to 2019 numbers. Travel demand has been soaring, and long holiday weekends create the perfect windows for getaways.”
This Memorial Day weekend, travelers are heading to theme parks and entertainment venues in Orlando, New York, Las Vegas and Southern California. Seattle, Anchorage, and Vancouver are popular destinations due to the popularity of Alaska cruises during this season. Additionally, Florida beaches and cruise ports are expected to be bustling.
In December, AAA forecasted approximately 115.2 million travelers would journey 50 miles or more from home during the 10-day year-end holiday travel period. This marked a 2.2 percent increase over the previous year and the second-highest year-end travel forecast since AAA began tracking holiday travel in 2000.
A PETITION FOR a referendum on Los Angeles’s proposed “Olympic Wage” ordinance, requiring a $30 minimum wage for hospitality workers by the 2028 Olympic Games, lacked sufficient signatures, according to the Los Angeles County Registrar. The ordinance will take effect, raising hotel worker wages from the current $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.
Mandatory health care benefits payments will also begin in 2026.
The L.A. Alliance for Tourism, Jobs and Progress sought a referendum to repeal the ordinance, approved by the city council four months ago. The petition needed about 93,000 signatures but fell short by about 9,000, according to Interim City Clerk Petty Santos.
The council approved the minimum wage increase for tourism workers in May 2023, despite opposition from business leaders citing a decline in international travel. The ordinance requires hotels with more than 60 rooms and businesses at Los Angeles International Airport to pay workers $30 an hour by 2028. It passed on a 12 to 3 vote, with Councilmembers John Lee, Traci Park and Monica Rodriguez opposed.
The L.A. Alliance submitted more than 140,000 signatures in June opposing the tourism wage ordinance, triggering a June 2026 repeal vote supported by airlines, hotels and concession businesses.
AAHOA called the ruling a setback for Los Angeles hotel owners, who will bear the costs of the mandate.
"This ruling is a major setback for Los Angeles' small business hotel owners, who will shoulder the burden of this mandate," said Kamalesh “KP” Patel, AAHOA chairman. "Instead of working with industry leaders, the city moved forward with a policy that ignores economic realities and jeopardizes the jobs and businesses that keep this city's hospitality sector operating and supporting economic growth. Family-owned hotels now face choices—cutting staff, halting hiring, or raising rates—just as Los Angeles prepares to host millions of visitors for the World Cup and 2028 Olympics. You can't build a city by breaking the backs of the small businesses that make it run."
Laura Lee Blake, AAHOA president and CEO, said members are proud to create jobs in their communities, but the ordinance imposes costs that will affect the entire city.
“Even with a delayed rollout, the mandate represents a 70 percent wage increase above California's 2025 minimum wage,” she said. “This approach could remove more than $114 million each year from hotels, funds that could instead be invested in keeping workers employed and ensuring Los Angeles remains a competitive destination. The mandate increases the risk of closures, layoffs and a weaker Los Angeles."
A recent report from the American Hotel & Lodging Association found Los Angeles is still dealing with the effects of the pandemic and recent wildfires. International visitation remains below 2019 levels, more than in any other major U.S. city.
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Global hotel RevPAR is projected to grow 3 to 5 percent in 2025, JLL reports.
Hotel RevPAR rose 4 percent in 2024, with demand at 4.8 billion room nights.
London, New York and Tokyo are expected to lead investor interest in 2025.
GLOBAL HOTEL REVPAR is projected to grow 3 to 5 percent in 2025, with investment volume up 15 to 25 percent, driven by loan maturities, deferred capital spending and private equity fund expirations, according to JLL. Leisure travel is expected to decline as consumer savings tighten, while group, corporate and international travel increase, supporting RevPAR growth.
Major cities continue to attract strong demand and investor interest, particularly London, New York and Tokyo. APAC is likely to post the strongest growth, fueled by recovering Chinese travel, while urban markets remain poised for continued momentum.
Lifestyle hotels are emerging as the new “third place,” blending living, working and leisure. The trend is fueling expansion into branded residences and alternative accommodations. JLL said investors must weigh regional performance differences, asset types and lifestyle trends when evaluating opportunities.
Separately, a Hapi and Revinate survey found fragmented systems, inaccurate data and limited integration remain barriers for hotels seeking better data access to improve guest experience and revenue.
Fragmented systems, poor integration limit hotels’ data access, according to a survey.
Most hotel professionals use data daily but struggle to access it for revenue and operations.
AI and automation could provide dynamic pricing, personalization and efficiency.
FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.
“The Future of Hotel Data” report, published by hospitality data platform Hapi and direct booking platform Revinate, found that 40 percent of hoteliers cite disconnected systems as their biggest obstacle. Nearly one in five said poor data quality prevents personalization, limiting satisfaction, loyalty and upsell opportunities.
“Data is the foundation for every company, but most hotels still struggle to access and connect it effectively,” said Luis Segredo, Hapi’s cofounder and CEO. “This report shows there’s a clear path forward: integrate systems, improve data accuracy and embrace AI to unlock real-time insights. Hotels that can remove these technology barriers will operate more efficiently, drive loyalty, boost revenue and ultimately gain a competitive edge in a tight market.”
AI and automation could transform hospitality through dynamic pricing, real-time personalization and operational efficiency, but require standardized, integrated and reliable data to succeed, the report said.
Around 19 percent of respondents cited communication delays as a major issue, while 18 percent pointed to ineffective marketing, the survey found. About 10 percent reported challenges with enterprise initiatives and 15 percent said they struggled to understand guest needs. Nearly 46 percent identified CRM and loyalty systems as the top priority for data quality improvements, followed by sales and upselling at 17 percent, operations at 10 percent and customer service at 7 percent.
Meanwhile, hotels see opportunities in stronger CRM and loyalty systems, integrated platforms and AI, the report said. Priorities include improving data quality for personalized engagement, using integrated systems for real-time insights, applying AI for offers, marketing and service and leveraging dynamic pricing and automation to boost efficiency, conversion and profitability.
“Clean, connected data is the key to truly understanding the needs of guests, driving amazing marketing campaigns and delivering direct booking revenue,” said Bryson Koehler, Revinate's CEO. “Looking ahead, hotels that transform fragmented data into connected data systems will be able to leverage guest intelligence data and gain a significant advantage. With the right technology, they can personalize every interaction, shift share to direct channels and drive profitability in ways that weren’t possible before. The future belongs to hotels that harness their data to operate smarter, delight guests and grow revenue.”
In June, The State of Distribution 2025 reported a widening gap between technology potential and operational readiness, with many hotel teams still early in using AI and developing training, systems, and workflows.
Hyatt partners with Way to unify guest experiences on one platform.
Members can earn and redeem points on experiences booked through Hyatt websites.
Way’s technology supports translation, payments and data insights for Hyatt.
HYATT HOTELS CORP. is working with Austin-based startup Way to consolidate ancillary services, loyalty experiences and on-property programming on one platform across its global portfolio. The collaboration integrates Way’s system into Hyatt.com, the World of Hyatt app, property websites and FIND Experiences to create a centralized booking platform.
World of Hyatt members can earn and redeem points on experiences booked through Hyatt websites, including wellness programs, cultural activities, ticketed events and local collaborations, the companies said in a statement. Members can also access FIND Experiences, which includes activities and auctions where points can be used to bid on events.
"In our search for an on-brand platform to power experiences and tap into ancillary revenue opportunities, Way's collaboration has been a true unlock for us," said Arlie Sisson, Hyatt’s senior vice president and global head of digital. "After a thorough evaluation of potential solutions, Hyatt chose Way to power the next chapter of our digital strategy by streamlining operations, elevating brand differentiation, enhancing personalization and, most importantly, delivering care at every touchpoint in the guest journey."
The Way initiative spans Hyatt’s portfolio, covering cabana rentals, in-room amenities and partnerships with local providers, the statement said. Way’s technology supports real-time translation, more than 100 currencies, multiple payment methods and data insights to help Hyatt manage operations globally.
"Hyatt set a high bar and Way is proud to bring their vision to life," said Michael Stocker, Way’s co-founder and CEO.
"The platform supports enterprise needs while preserving the guest experience."
U.S. CMBS delinquency rate rose 10 bps to 7.23 percent in July.
Multifamily was the only property type to increase, reaching 6.15 percent.
Office remained above 11 percent, while lodging and retail fell.
THE U.S. COMMERCIAL mortgage-backed securities delinquency rate rose for the fifth consecutive month in July, climbing 10 basis points to 7.23 percent, according to Trepp. The delinquent balance reached $43.3 billion, up from $42.3 billion in June.
Trepp’s “CMBS Delinquency Report July” showed multifamily led the increase, with its delinquency rate rising 24 basis points to 6.15 percent. Lodging fell 22 basis points to 6.59 percent and retail declined 16 basis points to 6.90 percent. Office delinquencies edged down to 11.04 percent after hitting a record 11.08 percent in June.
Loan-level analysis showed $4.4 billion in loans became newly delinquent in July, exceeding $3 billion that cured. Mixed-use, retail and office each accounted for more than $800 million of newly delinquent loans.
The seriously delinquent share, 60+ days, foreclosure, REO, or non-performing balloons, rose to 6.93 percent, Trepp said. Excluding defeased loans, the overall delinquency rate would be 7.41 percent.
A separate report from Lodging Econometrics showed the global hotel pipeline at 15,871 projects, up 3 percent year-over-year, totaling 2,436,225 rooms, up 2 percent.