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Christmas Gas Prices Down, Travel Forecast Higher

Christmas gas prices are down just pennies over last year, according to the latest numbers from AAA.

The average price per gallon of regular unleaded gas was $3.15 Sunday night in the Escambia County area, compared to $3.18 on year ago and an improvement from $3.28 on month ago.

AAA projects 93.3 million Americans will journey 50 miles or more from home during the year-end holidays, an increase of 1.6 percent over the 91.8 million people who traveled last year. This increase brings holiday travel figures to within half a million of the decade high mark seen during the 2006/2007 season. The year-end holiday travel period is defined as Saturday, Dec. 22 to Tuesday, Jan. 1, 2013.

“The year-end holiday season remains the least volatile of all travel holidays as Americans will not let economic conditions or high gas prices dictate if they go home for the holidays or kick off the New Year with a vacation,” said AAA President and CEO Robert Darbelnet. “Primary economic indicators all show modest improvement from last year and AAA is projecting an increase in the number of Americans stuffing their stockings with airline tickets and hotel reservations.”

“As we enter the New Year, one unknown for travel is the looming ‘fiscal cliff’ and the resulting uncertainty related to near-term tax and benefit changes. Having these items unresolved complicates many travelers’ ability to develop an accurate household budget as they plan for future spending and saving decisions. It is important that Congress and the President work together to quickly resolve the situation for the good of the nation,” said Darbelnet.

Impact of gasoline prices on travel plans

AAA estimates the national average price of gasoline will slowly drop through the end of the year and average between $3.20-3.40 a gallon by New Year’s Day. Gas prices dropped about 50 cents a gallon on average from September through early December, but remain at record highs for this time of year. AAA does not expect gas prices to have a major impact on travel volume, but consumers could have more money to spend on holiday shopping, dining and entertainment if prices drop through December as expected.

Automobile travel remains dominant mode of transportation, air travel increases

Approximately 90 percent of travelers (84.4 million) plan to travel by automobile this holiday season. This is a 1.3 percent increase over the 83.3 million people who traveled by auto last year. Air travel is expected to increase 4.5 percent as six percent of travelers or 5.6 million will take to the skies.

Those traveling by air will find lower airfares according to AAA’s Leisure Travel Index. For the year-end holiday period the average lowest round-trip rate is $203 for the top 40 U.S. air routes, a three percent decrease from last year. Approximately 3.3 million travelers will choose other modes of transportation, including rail, bus and cruise ship.

Pictured: A gas delivery at a station in Atmore. NorthEscambia.com photo, click to enlarge.