If your service volume is down slightly this week because of July 4, don’t worry. These ORs could increase significantly next week and beyond.
And the rental cars currently in service could also get a real workout during the holidays.
AAA predicts that 70.9 million travelers will travel 50 miles or more from home during the Independence Day travel period, defined as the nine-day period from June 29 to July 7.
Historically, AAA pointed out, the Independence Day holiday period included only one weekend. This is the first year that the Independence Day travel period has extended over a longer period, with two weekends included.
As a result, analysts said this year’s predicted passenger numbers for this stretch are expected to increase by 5% compared to 2023 and 8% compared to 2019.
“With summer vacation in full swing and the flexibility of remote work, more Americans are taking extended trips this Independence Day,” said Paula Twidale, vice president principal of AAA Travel. “We expect this July 4 week to be our busiest ever with 5.7 million more people traveling compared to 2019.”
AAA forecast that a record 60.6 million people will travel by car during the week of Independence Day, an increase of 2.8 million travelers over last year.
This year’s forecast also exceeded that of 2019, when 55.3 million people traveled by car during the week of July 4.
Additionally, AAA car rental partner Hertz said Dallas, Denver, Salt Lake City, Los Angeles and San Francisco are the cities with the highest rental demand during the holiday week. The busiest collection days are expected to be last Friday and Saturday as well as the day before July 4th.
AAA also mentioned that gas prices are lower than last year, when the national average was $3.53.
“Pump prices will likely continue to decline through Independence Day,” AAA said. “At that point, they will likely stabilize and remain relatively stable until after Labor Day, like last year.
“An important caveat is that hurricane season – currently underway – could affect gas prices if a storm negatively impacts Gulf Coast oil production and refining hubs,” AAA continued .
As consumers expect to spend plenty of time in front of the windshield attending family and friends gatherings, fireworks displays and more, driving activity could fuel recent projections from the Auto Care Association.
The association recently reported that total U.S. light vehicle parts sales are projected to grow 8.6% in 2023 to $392 billion, beating the previous year’s projection of 8.1%.
The organization added that light vehicle growth in 2024 is expected to reach a “robust” 5.9%, with the aftermarket for light, medium and heavy-duty vehicles now expected to become a $617.3 billion industry by 2027.
