The Thanksgiving Holiday has arrived, MEANING one of the busiest travel periods of the year is upon us, and this year 80% of travelers plan to drive to their destination, according to Cars.com.
A contributing factor to the high number of drivers is that of the 63% of travelers who have experienced recent flight delays, nearly all of them or 92% are now considering travel by car.
“Personal vehicles endure as the preferred mode of transportation for Americans, with 80% of Thanksgiving travelers opting to drive this year,” said Jenni Newman, Cars.com editor-in-chief. “Increased flexibility in the workplace coupled with the costs and inconveniences of air travel means the holiday road trip has never looked better.”
Gas prices continuing to fall
Meanwhile, the price of gasoline is falling across the United States as oil producers grapple with a downturn in the global economy and continuing fallout from the war in the Ukraine.
Since Monday, the national average for a gallon of regular gasoline has dropped by 7 cents to $3.70, according to AAA.
New data from the Energy Information Administration, gas demand decreased 3% from last week. Meanwhile, total domestic gasoline stocks rose by nearly 2.2 million barrels to 207.9 million.
The combination of increasing supply and falling gasoline demand has contributed to pushing pump prices lower. As demand remains low and stocks grow, drivers will likely continue to see pump prices decline ahead of Thanksgiving.
“While the national average has barely budged, there are now about 13 states with some stations selling gas below $3 a gallon,” said Andrew Gross, AAA spokesperson. “More gas stations could follow, which may be a big help with road trip budgeting as Thanksgiving approaches.”
Oil producers brace for economic downturn and reverse oil shock
Prices declined because the market is concerned the demand for oil could decrease due to growing economic concerns. If economic growth stalls or reverses course, crude demand will likely follow suit alongside prices.
AAA reported the largest weekly decreases in prices at the pump came in the Upper Midwest around the Great Lakes. Since last week, the largest price drops came in Wisconsin were prices dropped 27 cents. The price in Michigan dropped by 21 cents, by 18 cents in Indiana, 15 cents in Illinois and Ohio. Prices also declined by 14 cents in Delaware, by 11 cents Oregon, by 10 cents in Texas, and by 9 cents in Oklahoma. The price of gasoline also dropped by 8 cents per gallon in California.
Meanwhile, the national survey by Cars.com also found that growing frustration with airlines around weather delays, ticket prices, and schedule disruptions are leading to a record number of people opting for road trip this Thanksgiving.
The cars.com found nearly half or 46% of the respondents, who prefer to fly but are driving on Thanksgiving cite the cost of flights as reason for driving, while 20% of those who prefer to fly but are driving cite concern about flight disruptions as reason for driving.
