Consumer spending tested over summer holiday weekend

06.28.09
By Timothy Jones

Nice dinners at home are replacing fancy meals out at restaurants and families are clipping coupons instead of buying full-priced merchandise.

But as the 4th of July holiday weekend approaches, is your family planning to get away or celebrate the Independence Day in the back yard with a cookout?

According to AAA, the national motoring and leisure travel company, just 37.1 million Americans are expected to hit the road on the holiday weekend for a trip of 50 miles or more away from home. This is down from 37.8 million travelers in 2008 and 42.3 million the year before.

It's no secret why households are increasingly sticking to their budgets and postponing unnecessary travel plans - many have seen their savings accounts dip and their credit card debt skyrocket since the onset of the recession.

Additionally, says AAA, rising joblessness and concern over job security are prompting would-be vacationers to stay at home.

Are rising gas prices having an effect on travel plans? The impact is minimal says the motoring organization.

"Many Americans remain cautious about the outlook for their personal finances and these attitudes are reflected in the slight decline in travel we are forecasting for the upcoming holiday weekend," said Robert L. Darbelnet, AAA president and CEO.

However, the one place where families with budget money left over for vacations can find a deal is on airfare.

"Those who do vacation this summer will find a plethora of attractive discounts and special offers resulting in some outstanding vacation values. If you can afford to go, this summer is a smart time to travel," Darbelnet added.

AAA is expecting to see a 4.9 percent jump in leisure travel bookings this holiday as airfares decline.

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Consumers to decide between vacationing at home or hitting the road