Labor Day Travelers Find Lower Prices on Flights, Hotels and Car Rentals, AAA Says
WASHINGTON (Aug. 15, 2025) — Many Americans are packing in one last trip before summer ends, with Seattle, Orlando and New York topping AAA’s list of most popular destinations for Labor Day weekend.
According to AAA booking data, domestic travelers will find welcome relief in prices this year. Roundtrip flights are averaging $720, down 6% compared to 2024. Hotel rates have dropped 11%, while car rentals are 3% cheaper.
“Labor Day caps off summer travel and provides one final holiday weekend before the fall routine begins,” said Stacey Barber, Vice President of AAA Travel. “The top cities on the domestic and international lists are Seattle and Vancouver, both port cities for Alaska cruises. While some people are going on dream cruises or European vacations, many travelers are staying closer to home and taking road trips to nearby beaches or national parks.”
AAA partner Hertz reports Orlando, Denver, Boston, Los Angeles and Atlanta are the top car rental markets for the holiday, with the busiest pickup day expected on Friday, Aug. 29.
Gas prices are also cooperating. The national average for a gallon of regular is expected to stay below last year’s $3.33, thanks to steady crude oil prices and few market disruptions so far this summer.
International travel costs are more mixed. While hotels are averaging 2% less than last year, international airfare is up 8%. Still, many Americans are heading overseas, with European cities filling AAA’s top destinations list. Vancouver, a popular departure point for Alaska cruises, ranks as the No. 1 international spot.
Drivers hitting the road should plan carefully. INRIX, a transportation analytics firm, warns that the worst travel times will be afternoons and early evenings, especially Saturday, Aug. 30. The best time to head out, experts say, is before lunchtime.
AAA analyzed booking data from Thursday, Aug. 28 through Monday, Sept. 1, and compared it with the same period in 2024 to identify travel trends.