If you're planning to hit the road this holiday season, you'll have plenty of company. The American Automobile Association released data Wednesday showing that 122.4 million Americans are expected to travel at least 50 miles from home during the Christmas and New Year period, which would make this a record-breaking travel season.

Road Trips Dominate as Gas Gets Cheaper

The overwhelming majority of holiday travelers are choosing four wheels over wings. About 109.5 million Americans will drive to their destinations this year, up 2% from 2024. That's 89% of all holiday travelers opting for road trips.

The reason isn't hard to figure out: gas is actually affordable right now. For the first time in four years, the national average price dropped below $3 per gallon, and AAA expects prices to keep falling as we move toward year-end.

Air travel tells a different story. While 8.03 million Americans are projected to take domestic flights, they're paying for the privilege. Ticket prices have climbed 7% this year, averaging nearly $900.

Trump Eases Fuel Economy Rules

The holiday travel news arrives alongside President Donald Trump's announcement relaxing Corporate Average Fuel Economy standards. Ford Motor Co. (F) CEO Jim Farley praised the decision while reaffirming the company's commitment to American-made vehicles.

The policy shift got support from Sen. Ted Cruz (R-TX) and Transport Secretary Sean Duffy, who argued it would increase consumer choice, improve affordability, and make vehicles safer. California Governor Gavin Newsom (D) criticized the move.

Thanksgiving Set the Stage

This holiday surge follows an already historic Thanksgiving, when AAA forecasted over 81.83 million Americans would travel at least 50 miles between November 25 and December 1—the highest number ever recorded for that holiday.

That travel boom happened despite a government shutdown that severely impacted the aviation industry as lawmakers battled over federal funding programs.