4 Stocks To Ride On Second-Highest Memorial Day Weekend Travel

This Memorial Day weekend, Americans are hitting the highway and taking to the sky in numbers not seen in more than a decade. Travel volume is expected to be the second highest on record and the most since 2005. Record low summer time gas prices and steady rise in income levels are giving Americans every reason to travel.

The Memorial Day holiday travel period stretches from May 26 to May 30 and marks the unofficial start to the summer season. Hence, now is the right time to bet on fundamentally sound stocks that benefit from this surge in travel.

Record Uptick in Memorial Day Weekend Travel

About 38 million Americans are anticipated to travel this Memorial Day weekend, according to the American Automobile Association (AAA) and IHS Global Insight. Compared to last year, around 700,000 more people will travel. The projected figure of those likely to travel 50 miles or more away from home also compares favorably with the past 10 years’ figures.

Nearly 34 million (about 89%) travelers, an overwhelming majority, is expected to drive to their Memorial Day destinations. Marshall Doney CEO of AAA said that the “great American road trip is officially back.”

But why only road trip, American are also choosing to fly this summer. Around 2.6 million (about 6.8%) Americans are poised to travel by air, which marks an increase of 1.6% from last year. Additionally, 231.1 million passengers are predicted to fly in June, July and August, according to the Airlines for America (A4A). This will result in an increase of 3.8% over last summer’s record numbers. Other modes of transport during the weekend, including cruises, trains and buses, will account for the remaining 4.2%. 

Cheap Gasoline to the Rescue

Lowest gas price in more than a decade is the prime incentive for Americans to hit the road. The national average price for gas is around $2.22 per gallon. The AAA survey showed that 55% of Americans are more likely to take a road trip, thanks to such low gas prices. AAA also estimated that Americans saved $15 billion on gas for this year due to low gas prices compared to the same period last year.

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