Labor Day weekend: Has the travel boom truly returned?

NEWARK, N.J. (NewsNation) — Millions of Americans are traveling during Labor Day weekend, with a record number expected to fly and hit the road as they take advantage of slightly cheaper flights and gas.

The Transportation Security Administration predicts an 8.5% increase in airport screenings compared to the same period last year, with Friday expected to be the busiest day at airports nationwide.

Meanwhile, AAA predicts heavy road congestion and suggests traveling by car Friday morning or Saturday afternoon to avoid the worst traffic.

Despite ongoing concerns about inflation and layoffs, Americans are traveling in record numbers this summer. TSA confirmed to Nexstar's NewsNation on Friday that air travel this summer has reached the highest levels in the agency's history.

However, like much of the American consumer experience this year, vacation trends are divided.

What's fueling the record-breaking travel?

So, what's fueling the high travel?

It comes down to the value proposition. In nearly every other area of consumer spending, Americans are paying more and getting less — often referred to as "shrinkflation."

In contrast, domestic airline prices are down. The travel app Hopper is reporting that domestic airfares are 5% lower this Labor Day weekend and 17% lower than they were during the same holiday weekend in 2019, before the COVID-19 pandemic.

Since Memorial Day weekend, TSA has screened 239.8 million people, averaging 2.7 million per day. To underscore this trend, the top 10 busiest travel days in TSA history have all occurred since May of this year, including a milestone July 7, when more than 3 million people were screened in a single day.

This Labor Day weekend is set to break another record, with 17 million people expected to fly between Aug. 29 and Sept. 4. The TSA anticipates Friday to be the peak travel day, with agents planning to screen 2.86 million people.

The record-breaking travel seen this summer and expected this weekend primarily involves domestic trips. According to AAA, international travel is down about 4%, with costs rising 11% compared to previous years.

Gas prices are falling

Over Labor Day weekend in 2023, the national average for gas was $3.81 per gallon, but in recent weeks, prices have hovered around $3.50.

GasBuddy projects the average price on Labor Day will be even lower at $3.27 per gallon, the lowest this holiday since 2021.