The American automobile association (AAA) is reporting that holiday travel (November 2010) will improve by 11% over last year as Americans travel at least 50 miles during the Thanksgiving break. The big spike will be in driving which is expected to go up over 12% while air travel is likely to increase by a more modest 3.5%.
The massive 12% increase expected in driving probably indicates the adjustment that Americans are making in this new economy. The recessionary mood has gone long enough and people are ready to make the most of what is economically possible. This despite a sharp rise in gas prices to over 3$ a gallon.
The American consumer is also likely to spend more in retail and this augurs well for the US economy. As folks drive around there should be more optimism and energy in the marketplace . Consumers will take charge and while their overall holiday budget is under pressure, consumer optimism should spread to businesses as they become more confident. The question who will spend first between consumers and businesses is getting answered. It’s consumers who have started spending in retail,travel and a repeat consumer spending out of recession is probably the way forward in the upcoming holiday break.