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18 Aug 2025 By travelandtourworld
The Labor Day weekend has always been one of the busiest travel periods in the United States, marking the unofficial end of summer. In 2025, new research from AAA Travel shows that Americans are not holding back on making the most of the long break. Seattle, Orlando and New York are leading the list of favourite US destinations, and the encouraging news is that travellers are paying less compared to last year.
Roundtrip flights within the country are now averaging lower fares, hotel rates have dropped by double digits, and car rentals are also slightly cheaper. For families planning theme park visits in Orlando, culture-seekers heading to New York, or cruise passengers boarding in Seattle, these savings mean more value for money. It also allows travellers to spend on experiences rather than just on getting there.
The trend points to a wider shift in the travel market. More flights and hotel rooms are available, and petrol prices remain steady, making both road trips and city breaks more attractive. At the same time, cruises from Seattle to Alaska and Broadway shows in New York are drawing record attention, proving that Americans are keen to enjoy one final adventure before autumn routines return.
AAA’s findings highlight that 2025’s Labor Day weekend travel is not only about popular destinations but also about affordability and smarter choices. This mix of lower costs and high demand shows a vibrant, resilient travel market as summer comes to a close.
The Labor Day weekend has always been a key moment in the American travel calendar. For many families, couples, and groups of friends, it marks the final chance to enjoy a break before autumn routines return. This year, millions of Americans are making plans to travel, and the latest data from AAA Travel reveals clear patterns in destinations, prices, and driving conditions.
The picture that emerges is both exciting and encouraging. Airfares are down, hotel rates are lower, and even car rentals are cheaper compared to last year. Many travellers are choosing city escapes, theme parks, road trips, or cruises. Others are saving money by staying closer to home. Yet the trend is the same across the country: people want to squeeze in one last trip before the season ends.
According to AAA booking data, Seattle, Orlando, and New York are the three most popular US cities for Labour Day weekend 2025. Each destination offers a very different type of holiday, yet all are proving irresistible to travellers.
Seattle is at the top of the list. The city serves as a gateway to Alaska cruises, which are finishing their summer season. With Vancouver also ranking as the number one international destination, it is clear that Alaska cruise holidays are driving strong demand.
Orlando takes second place, thanks to its world-famous theme parks. Families are flocking to Central Florida to enjoy Walt Disney World, Universal Orlando, and other attractions before school begins. Lower flight prices have made Orlando more affordable than in previous years.
New York is third, with Broadway shows, museums, and iconic landmarks pulling visitors from across the country. The city’s mix of culture, shopping, and events makes it a classic long-weekend choice.
Other domestic hotspots include Boston, Anchorage, Chicago, Atlanta, Denver, Miami, and Las Vegas. This spread shows that Americans are seeking both urban excitement and natural adventures.
While domestic travel dominates, international journeys are still strong. Vancouver, Canada tops AAA’s international list, again tied to the popularity of Alaska cruises. From Vancouver, travellers can board ships that sail through stunning northern waters.
European cities follow closely. Rome, Dublin, London, Paris, Amsterdam, Barcelona, Athens, Edinburgh, and Lisbon are all in the top ten. For many travellers, Labor Day weekend is a chance to extend summer with a European escape. Airfare is more expensive this year, but hotel prices abroad are slightly cheaper. That mix shows demand is holding steady despite higher costs.
One of the biggest surprises in AAA’s research is the drop in domestic travel costs. Roundtrip flights within the US are averaging $720, about 6% cheaper than last year. Hotels are 11% cheaper, and car rentals are 3% lower.
There are several reasons for this. First, airlines have added more seats on popular routes, spreading demand. Second, hotel supply has improved as new rooms come online in major cities. Third, steady fuel prices have kept car rental companies from raising fees sharply.
Together, these factors create a more affordable holiday weekend. This is welcome news for Americans who faced higher prices throughout 2022–2023, when travel costs soared after the pandemic.
Driving remains one of the most popular ways to travel over Labor Day. Families often take short road trips to beaches, lakes, or national parks. This year, petrol prices are helping. The national average for a gallon of regular fuel is lower than last year’s $3.33 per gallon.
Barring a tropical storm or hurricane hitting Gulf Coast refineries, prices should stay steady. In fact, 2025 has seen fewer price swings than earlier years because crude oil has remained stable. This makes road trips more affordable and easier to plan.
Traffic, however, is still a challenge. INRIX, a transport data provider, has highlighted the best and worst times to drive during the holiday weekend. The advice is clear: travel early in the day.
On Thursday, August 28, the best time to set off is before 1:00 pm, while the worst time is between 1:00 pm and 8:00 pm. On Friday, August 29, drivers should leave before midday. From noon to 8:00 pm, roads will be crowded as millions head out of town.
Saturday is expected to be especially busy. The best time to start is between 6:00 am and 10:00 am. After that, congestion will last until the evening. Sunday and Monday mornings are less intense, but afternoons will see heavy returns.
For those in cities like Atlanta, Boston, Chicago, New York, Los Angeles, and Seattle, travel times could double on key routes. In some cases, such as the Boston to Manchester route, delays may be more than 100% compared to normal.
AAA’s car rental partner Hertz says the busiest day for pick-ups will be Friday, August 29. Popular destinations for rentals include Orlando, Denver, Boston, Los Angeles, and Atlanta. Many families are using cars to extend their trips to nearby attractions.
This demand makes early booking essential. Even though prices are lower overall, last-minute renters may face limited choice. Larger vehicles such as SUVs and minivans are particularly popular for family road trips.
Travel is not just about cost and logistics. It is about memory-making. Families want to celebrate the end of summer. Couples want to enjoy one last romantic trip before work routines return. Friends want to gather for fun before autumn commitments take over.
That is why even with the risk of traffic jams, crowded theme parks, or busy airports, millions still choose to travel. The holiday has become a symbol of summer itself.
Among all the options, Alaska cruises stand out. Both Seattle and Vancouver are leading destinations because they serve as gateways to these voyages. The 2025 season has been especially strong, as projected earlier this year in AAA’s Cruise Forecast.
Travellers see Alaska as a dream trip, offering glaciers, wildlife, and stunning landscapes. For many, it is the highlight of their summer. The fact that cruise demand is boosting two major cities shows the power of this form of travel.
The trends revealed by AAA tell us several things about the American travel market. First, price still matters. Lower flights, hotels, and rentals are attracting more people to travel domestically. Second, cruises continue to drive tourism in port cities. Third, road trips remain a favourite, supported by steady petrol prices.
At the same time, travellers are showing flexibility. Many are choosing shorter trips or closer destinations to save money. Others are mixing international holidays with local road trips. This blend reflects a desire for balance: enjoy the world, but keep costs manageable.
As the Labor Day weekend of 2025 arrives, Americans are on the move. From Seattle’s cruise terminals to Orlando’s theme parks, from New York’s Broadway lights to European capitals, travellers are filling planes, hotels, and cars.
They are supported by lower domestic travel costs and steady fuel prices. They are guided by traffic forecasts that stress the importance of early starts. And they are motivated by the emotional pull of summer’s end.
Labor Day has always been more than a date on the calendar. It is a cultural moment, a pause before routine returns. This year, with cheaper options and exciting destinations, it is proving once again that Americans will not miss their last chance for summer adventure.
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