Americans are closing out summer with Labor Day getaways despite higher travel costs and expected traffic delays.
Travelers face higher fuel, airfare, and hotel costs this year, while domestic cruise prices trend lower.
"Labor Day has long been a popular time for a final summer getaway, and travelers continue to prioritize vacations with family and friends," said AAA's Megan Cooper. "Whether it's a cruise, a national park adventure, or an international trip, travelers are eager to make the most of the holiday weekend."
AAA booking data shows strong demand for destinations across the U.S., Canada, and Europe, with Seattle, Orlando, Rome, and London among the most popular choices.
Labor Day Travel Costs Rise for Flights and Hotels
Travelers are paying more for several major components of a Labor Day vacation this year.
AAA booking data shows average domestic airfare is up 2% compared to last year, averaging $750 for a roundtrip ticket. For travelers flying to the most popular Labor Day destinations, airfare is nearly 20% higher than last year, averaging $790.
Travelers are also paying more for accommodations. Domestic hotel bookings are up 9% compared to last Labor Day weekend, while international hotel bookings are 12% more expensive.
Not every travel category saw price increases. International airfare is down 4% year over year, creating opportunities for travelers looking beyond U.S. borders.
Cruises and National Parks Drive Labor Day Travel Demand
Many Labor Day travelers are looking to make the most of the unofficial end of summer by exploring the outdoors.
AAA travel advisors report strong demand for Alaska cruises and national park vacations. Cruise demand is helping drive interest in destinations such as Seattle, Anchorage, and Vancouver, while travelers flying into cities like Denver and Las Vegas often continue on to destinations including Rocky Mountain, Arches, Zion, and Grand Canyon national parks.
AAA booking data shows cruises departing from U.S. ports are 4% less expensive than last year, averaging $2,700 per booking. Travel advisors say travelers continue to view cruises as a convenient vacation option because transportation, accommodations, dining, and entertainment are bundled into a single package.
Gas Prices May Be More Expensive Than Last Labor Day
While it's too early to know what gas prices will be on Labor Day weekend, current market trends suggest motorists could pay more than they did a year ago. The national average price of gasoline on Labor Day 2025 was $3.19 per gallon.
Crude oil, which accounts for roughly half the price consumers pay for gasoline, remains more expensive than it was a year ago. Energy analysts also point to strong refinery demand and relatively low crude oil inventories as factors that continue to support higher fuel prices.
For travelers planning a road trip, fuel costs are likely to be another expense to factor into their holiday vacation budget.
Labor Day Traffic Forecast: Best and Worst Times to Travel
INRIX, a provider of transportation data and insights, expects the heaviest congestion to occur Thursday and Friday as holiday travelers share the road with regular commuter traffic.
The worst times to travel are expected to be:
- Thursday, Sept. 3: 2 p.m. to 7 p.m.
- Friday, Sept. 4: Noon to 8 p.m.
- Saturday, Sept. 5: 1 p.m. to 5 p.m.
- Monday, Sept. 7: 2 p.m. to 5 p.m.
Unlike longer holiday periods, Labor Day travel is often concentrated into a shorter window, resulting in significant congestion as holiday travelers mix with normal commuter traffic. AAA encourages motorists to depart early, allow extra travel time, and avoid afternoon departures whenever possible.
More Than 400,000 Drivers Needed Roadside Assistance Last Labor Day
For travelers choosing to drive, vehicle preparation remains critical.
During last year's Labor Day holiday period, AAA responded to more than 400,000 roadside assistance calls for common issues, including dead batteries, flat tires, lockouts, and towing.
Before leaving, drivers should:
- Check tire pressure and tread
- Test the battery
- Inspect fluid levels
- Pack water, snacks, and emergency supplies
- Carry a flashlight and jumper cables
Before You Go: AAA's Labor Day Travel Checklist
Travelers can save time, reduce stress, and avoid unexpected travel disruptions by planning ahead:
- Monitor traffic conditions and leave early to avoid peak congestion periods
- Check flights and travel itineraries before heading to the airport
- Reserve hotels, rental cars, attractions, and parking in advance
- Inspect your vehicle's tires, battery, and fluid levels before a road trip
- Pack an emergency kit with water, snacks, a flashlight, and jumper cables
- Monitor gas prices and fill up before reaching heavily traveled corridors where prices may be higher