Labor Day travelers face record gas prices as AAA data show demand for trips holding firm

Americans heading out for the Labor Day holiday are facing the most expensive gasoline for this time of year on record, even as travel demand shows little sign of easing. The national average price for regular gasoline stood at $4.10 a gallon as of August 20, according to AAA's daily fuel price survey, the highest it has ever been on that date and part of a month tracking as the most expensive August at the pump on record.

The price run-up arrives just as AAA's annual survey of Labor Day travel trends pointed to continued demand for cruises, national park road trips and European city breaks even as the cost of getting there has climbed for many travelers compared with a year ago.

Record prices at the pump

August's average gasoline price of $4.06 a gallon has edged past the previous record of $3.97 set in August 2022, according to AAA, which tracks prices daily across more than 100,000 gas stations nationwide. The $4.10 reading recorded on August 20 marked a 3-cent increase from the week before. AAA attributed the climb to crude oil prices holding near $80 a barrel amid continued instability around the Strait of Hormuz, even though gasoline demand has been running below typical seasonal levels. Independent weekly survey data from the U.S. Energy Information Administration put the national average at $4.049 a gallon for the week ending August 17, closely tracking AAA's figures using a separate government sampling methodology.

The increase is stark when measured against last year: the national average on Labor Day 2025 was $3.19 a gallon, meaning drivers filling up this holiday weekend are likely to pay roughly 90 cents more per gallon, or close to 30 percent, than they did a year ago. For a driver covering 300 miles round trip in a car that gets 25 miles per gallon, that difference works out to about $11 in additional fuel costs for the trip alone. Electric vehicle owners have been comparatively insulated from the swing: AAA reported that public charging prices have held steady at 42 cents per kilowatt-hour.

Where travelers are headed

Despite the higher pump prices, AAA's data show strong continued demand for Labor Day trips, with domestic roundtrip airfare averaging about $750, up 2 percent from a year earlier, while fares to the most popular domestic destinations are running closer to $800, roughly 20 percent higher than last year. International airfare, by contrast, is averaging about $1,240 per ticket, down 4 percent from a year ago. AAA also reported that domestic hotel bookings are running about 9 percent above last year's Labor Day weekend, with international hotel stays up roughly 12 percent, according to figures cited alongside the AAA data by local radio outlet WIVK.

Seattle, Orlando, Boston, Denver and New York top the list of domestic destinations this year, according to AAA booking data, while Rome, Vancouver, London, Dublin and Paris lead the international rankings, a pattern also noted in coverage from the Gilmer Mirror. A common thread among several of the most popular spots, AAA said, is Alaska cruising: Seattle, Anchorage and Vancouver are all drawing travelers wrapping up a strong Alaska cruise season, while Denver and Las Vegas are seeing a surge in car rentals from travelers driving on to Rocky Mountain, Arches, Zion and Grand Canyon national parks, according to trends summarized by Hotel News Resource.

• Top domestic destinations: Seattle, Orlando, Boston, Denver, New York, Chicago, Anaheim/Los Angeles, Las Vegas, Anchorage, Atlanta
• Top international destinations: Rome, Vancouver, London, Dublin, Paris, Calgary, Barcelona, Athens, Amsterdam, Halifax

"Travelers are seeking memorable experiences, and these top Labor Day destinations reflect that desire," said Stacey Barber, vice president of AAA Travel. "AAA members are embarking on Alaska cruises and river cruises, touring National Parks, and sightseeing in Europe. Many of our members are also looking ahead to 2027 and booking cruises and tours now before they sell out."

Who is affected

The cost increases weigh most heavily on road trippers and drivers of less fuel-efficient vehicles, since gasoline is the one travel expense that touches nearly every domestic trip regardless of destination. Families driving to national parks or visiting relatives, rather than flying, are among the most exposed to the pump-price spike, while air travelers to the most in-demand domestic destinations are facing the sharpest fare increases of any segment AAA tracked this year. International travelers, somewhat counterintuitively, are seeing relief on airfare even as their hotel costs climb, a split that AAA data did not fully explain but that likely reflects softer demand on some long-haul routes even as leisure hotel rates continue rising broadly.

Truckers and other commercial drivers, along with any household relying on a vehicle for a daily commute, are also absorbing the higher fuel costs outside the holiday context, a dynamic that retailers including Walmart have separately cited as a factor weighing on discretionary consumer spending this summer.

What happens next

Labor Day falls on September 7 this year, with the holiday weekend beginning as early as Thursday, September 3, for travelers looking to get a head start. Traffic analytics firm INRIX has projected that Friday, September 4, will see the longest stretch of heavy congestion on the nation's highways, while Sunday is expected to be comparatively light for holiday-related traffic. AAA said it fielded more than 400,000 roadside assistance calls over the Labor Day period last year for issues including flat tires, dead batteries and emergency towing, and the club has urged drivers to have vehicles inspected before setting out this year given the added strain higher fuel costs are putting on household travel budgets. The Energy Information Administration is scheduled to publish its next weekly gasoline price survey before the holiday weekend, which will show whether prices continue climbing into September or begin to ease as summer driving season winds down.