AAA Unveils Labor Day Hotspots for 2025

As summer winds down, Labor Day remains a critical weekend for the travel and hospitality industry. According to the latest AAA booking data, U.S. travelers are seizing one last chance for vacations before the fall, with clear signals for destinations, hotels, and service providers on where demand will be strongest.

Labor Day travel reflects America’s love for summer getaways—cycling by the beach beneath the flag.

Top Destinations for Labor Day Weekend

• Domestic: Seattle, Orlando, and New York lead the list, followed by Denver, Atlanta, Boston, Los Angeles, Miami, Chicago, and Las Vegas.

• International: Vancouver claims the top spot, followed by Rome, Dublin, and London. Both Seattle and Vancouver are key Alaska cruise ports, reflecting a strong 2025 cruise season that AAA projected earlier this year.

  
  

Pricing Trends Offer Opportunities

AAA’s data points to a favorable landscape for domestic travelers, which could boost last-minute hotel and activity bookings:

• Flights: Average roundtrip fares are $720, down 6% from 2024.

• Hotels: Rates are 11% lower, creating opportunities for upselling and extended stays.

• Car Rentals: Down 3%, with AAA partner Hertz citing Orlando, Denver, Boston, Los Angeles, and Atlanta as the busiest pickup cities. The peak rental day will be Friday, August 29.

International travel is a mixed picture: hotels are 2% cheaper, but airfare has risen 8% year over year, with European capitals driving demand.

Fuel Prices and Road Trips

Gas prices are steady, averaging close to 2021 summer levels. In 2024, the Labor Day national average was $3.33 per gallon, and AAA projects this year’s prices will remain lower unless tropical storms disrupt Gulf Coast refineries.

What It Means for Hospitality Stakeholders

For hotels, attractions, and destinations, Labor Day represents both an end-of-season push and a strategic opportunity:

• Cruise gateway cities like Seattle and Vancouver should capitalize on strong pre- and post-cruise stays.

• Price-sensitive travelers may be swayed by discounted flights, hotels, and car rentals, creating potential for last-minute marketing campaigns.

• Stable fuel prices encourage regional drive markets, benefiting roadside hotels, resorts, and attractions.

  
  

“Labor Day caps off summer travel and provides one final holiday weekend before the fall routine begins,” said Stacey Barber, vice president of AAA Travel. “The top cities on the domestic and international lists are Seattle and Vancouver, both port cities for Alaska cruises.”

For the hospitality sector, this “last hurrah” is more than tradition—it’s an opportunity to maximize occupancy, drive ancillary spend, and lock in loyalty before travelers shift into autumn routines.