$3 a Gallon Gas? - Experts Predicting Gas Prices to Continue Their Upward Trend

Record-high gas prices are expected to be greeted with a collective shrug by Memorial Day holiday travelers.

Those who think that $3-a-gallon and higher gas will keep people from hitting the highways, byways and airways next weekend should think again. According to projections from AAA, the nation's leading travel service, motorists in fact are expected to take off in record numbers.

"Motorists may save money by staying closer to home or cutting their budget in other areas, but the roadways will be filled with Memorial Day weekend travelers across the country," Beth Mosher, spokeswoman for AAA Chicago, said in a statement.

AAA, in fact, predicts that 38.3 million Americans will travel 50 or more miles from their homes for holiday vacations. That's a 1.7 percent increase from last year. Most of that group, 32.1 million (84 percent) will travel using their own motor vehicles.

The news comes as experts predict that gas prices could be well on their way to $4 a gallon by the time summer hits. A gallon of regular unleaded currently costs about $3.11 as a national average, but some spots already are paying close to that $4 mark, including San Francisco, which is paying $3.61 for regular and $3.91 for premium, according to AAA's Daily Fuel Gauge Report.

Some prices in other markets for regular unleaded:

New York City: $3.24

Chicago: $3.51

Atlanta: $2.99

Baltimore: $3.02

Miami: $3.06

Seattle: $3.46

Philadelphia: $3.05

"I see nothing in sight to slow down the increases in gas pricing," said Bill McClure, CEO of the Web site fuelmeup.com, which helps consumers find the cheapest gas prices in their areas or while planning trips. "It appears even with the record-high price of gasoline, consumers still want to drive and nothing is slowing them down."

Most Memorial Day auto travelers will come from the West, with 7.6 million travelers, AAA said. Elsewhere, the South will have 6.9 million, the Midwest 6.8 million, the Northeast 6 million, and the Great Lakes, from where 4.8 million holiday wanderers will originate.

Meanwhile, AAA also is noting a surge in air travel, with an expected jump of 1 percent from last year with 4.4 million going by plane. Those who choose that mode of transportation will find they're paying less than last year, with the average flight costing $166, a 5 percent decrease from 2006. Car rental rates are expected to be down 16 percent at $31, though hotel rates are expected to surge 13 percent from last year, with an average nightly rate of $174 at hotels carrying AAA's 3 Diamond rating.

Most of those travelers will be bringing their kids along as well. AAA says 57 percent of households with children under 18 will be bringing them along for the holiday weekend.

AAA based its figures on a national survey of 2,000 adults by the Travel Industry Association of America.