Table of Contents
Memorial Day Travel Trends: A Mixed Picture for 2026
Memorial Day traditionally marks the beginning of the summer travel season, serving as a key indicator for holiday getaways. However, this year has seen a mix of challenges and expectations, as escalating fuel prices and airfares pose hurdles for many travellers in the United States.
Stacey Barber, Vice President of AAA Travel, noted that despite these complications, demand remains robust. "Travel is personal, and for many Americans, Memorial Day weekend getaways are a tradition," she remarked. AAA forecasts that approximately 45 million Americans will travel at least 50 miles from home between May 21 and May 25, setting a new record and surpassing last year’s total of 44.8 million. Of those, around 39.1 million are expected to take road trips, maintaining a steady trend from previous years.
The Costs of Travel
While road trips remain the more economical choice, the cost of gas is significantly higher than last year, averaging $4.53 this year compared to $3.19 last Memorial Day. Despite this, Barber emphasised that driving vacations will account for 87% of all travellers. Air travel is also anticipated to rise, with 3.66 million domestic flights expected over the long weekend, although most of these bookings occurred prior to the recent increases in jet fuel prices.
Economic Disparities in Travel Plans
The travel landscape is revealing a stark divide. Nearly 40% of lower-income households—earning $66,000 or less—are likely to forgo summer travel plans, according to the Bank of America Institute. Flight bookings and travel-related expenditure from these households have decreased year-over-year.
Brian Sozzi, Yahoo Finance’s executive editor, highlighted that financial pressure from increased gas and food prices has forced many Americans to allocate their summer travel budgets elsewhere. The personal savings rate has plummeted to 3.6%, the lowest level since 2022.
Contrastingly, middle- and higher-income households with incomes exceeding $66,000 are increasing their travel budgets. Travel plans for this demographic appear not to have slowed, even amidst economic uncertainties.
Adapting Travel Plans
Bank of America data suggests many travellers are adjusting rather than cancelling plans altogether. Approximately 30% of vacationers state that higher gas prices won’t affect their summer travel intentions. Roughly half of all travellers have locked in their plans ahead of time, a significant increase from 38% last year.
In terms of funding summer getaways, almost half of Americans are contemplating using credit card rewards and loyalty programmes. Notably, 80% of Gen Z individuals plan to utilise such incentives, compared to 60% of millennials and substantially lower figures for Gen X and baby boomers.
Cruising: An Up-and-Coming Option
For budget-conscious holidaymakers, cruises are gaining traction. Barber estimates that 2026 could be a record year for the cruise industry, noting that spending on cruises has increased across all income tiers in the initial months of the year. More than a third of Americans are contemplating a cruise in the next year.
Gene Sloan, the cruise team lead at The Points Guy, remarked that while airlines are raising fares and sometimes cancelling flights, cruise lines are initiating sales and value-added promotions to stay competitive.
Conclusion
The outlook for Memorial Day travel in 2026 is mixed, with strong demand evident but also rising costs and economic disparities impacting travel choices. While higher-income travellers are likely to continue their summer plans, lower-income households may have to sit this season out. Nonetheless, as travellers navigate these challenges, many are adapting, indicating resilience in the face of fluctuating economic conditions.
