The national average for a gallon of gas is sitting around $4.10 this Labor Day, up roughly 30% from a year ago. The previous record for the most expensive Labor Day gas, set back in 2012, was $3.83. If prices hold where they are, today could quietly become the most expensive Labor Day at the pump in history. None of that seems to be keeping people home.

A Record Nobody's Talking About

Higher crude oil prices, strong refinery demand, and thinner oil inventories are the specific forces pushing pump prices to this level. Some regions are feeling it far worse than the national number suggests, with parts of Los Angeles County seeing prices well above $5 a gallon, while other areas are closer to $4. Whatever the local number, it's meaningfully higher than what most drivers paid for the same holiday weekend a year ago.

Despite the run-up in gas prices, AAA is projecting a busy holiday travel weekend, and the spending data backs that up. Domestic hotel prices are running about 9% above last year, and international accommodations are up around 12%. That's not the behavior of a public pulling back because of pump prices. It's the behavior of a public that has, at least for now, decided a holiday weekend is worth paying more for.

Where the Deals Actually Are

Not every part of Labor Day travel got more expensive. International airfare is running about 4% cheaper than last year, and cruise pricing out of US ports is down a similar amount, averaging around $2,700 for an Alaska voyage. Domestic airfare did rise modestly, up about 2% overall and closer to 20% for the most popular destinations specifically, which tells you the premium is concentrated in high-demand routes rather than spread evenly.

Final Take

If your Labor Day plans involve a long drive, the math this year is straightforward: you're very likely paying record or near-record prices at the pump to get there. If your plans involve a flight or a cruise instead, you may actually be catching a relative discount compared to a year ago. Either way, the data suggests price alone isn't what's deciding whether people travel this weekend, it's just deciding how much more the trip costs once they've already committed to going.

Written by Deniss Slinkins
Millionaire Core