Still going on vacation but closer to home

Gasoline prices are astronomical and hotel rates are going through the roof, but that hasn’t discouraged people from planning getaways this Memorial Day weekend.

And summer travel — especially within the U.S. — is looking hot.

Studies “show that the majority of consumers expect to continue to see high gas prices this summer, but they seem to be taking this much more in stride than they have in the past,” said Suzanne Cook, senior vice president of research for the Travel Industry Assn.

But families are making adjustments. They are planning to stay fewer days at less-pricey hotels that are closer to home and they’ll dine at cheaper restaurants, said Sandra Hughes, vice president of travel for the Automobile Assn. of America.

The action will start in earnest Friday, the AAA said, as the number of travelers trekking 50 miles or more for the holiday weekend is expected to rise about 2% from last year. It was up about 1% in 2006.

Summer travel won’t be much different, so expect crowded airports and packed airplanes, said Chris McGinnis, editor of Expedia Travel Trendwatch. Fares aren’t going up as they did last year, when they rose about 10%.

“It’s getting crowded out there, but prices are holding firm,” McGinnis said.

That’s because low-cost carriers are adding planes and seats for summer, putting pressure on major airlines to hold the line on fares. Some airlines tried raising fares several times in the last two weeks but had to retreat when others declined to follow suit.

Meanwhile, a weak dollar and new passport rules are putting a damper on interest in overseas vacations. Shorter domestic trips to destinations such as Las Vegas and San Francisco are surging, according to online travel services.

Jun and Johnny Chung of Irvine are among those couples electing to stay closer to home. They will drive to Las Vegas.

“I do mind that gas prices are so high, but we’ve got to get away,” Johnny Chung said. He added that the Vegas trip, which includes three nights at the MGM Grand’s new Signature hotel, was less than half the cost of flying to Cabo San Lucas, where they initially planned to go. “We’re saving a bundle and I’m happy about that.”

Last week, gas prices nationwide were averaging $3.04 for a gallon of regular — 25 cents more than a month ago and 15 cents higher than regular gas was at the same time last year, according to the AAA. In the Los Angeles-Long Beach area, regular gas averaged $3.48 last week, 22 cents higher than last month and 9 cents higher than last year.

Flights over the holiday weekend are averaging about 5% less than last year, with average airfare at $166. Car rental rates also are down about 16% to an average of $31 a day.

But hotel rates are up 13% from a year ago with travelers spending an average of $174 a night, the AAA said. That may be one reason the use of recreational vehicles is expected to be up this year compared with 2006 despite high fuel costs, according to a survey of RV owners.

But travelers will tolerate only so much in fuel costs, according to the Travel Industry Assn., which found in a survey that a third of more than 2,000 respondents would cancel a trip if a gallon of gas hit a nationwide average of $3.50.

“There is that small risk that if gasoline prices do in fact get that high, our industry will suffer,” Cook said.

McGinnis of Expedia Travel Trendwatch is advising his readers to try destinations “off the beaten path” to avoid crowds and save money.

For instance, try flying north of the border to Quebec City instead of to Paris, which traditionally becomes one of the summer’s most-crowded — and most expensive — destinations. Quebec City is “right out of a fairy tale, in a French-speaking Canadian province,” McGinnis said.

Or if Hawaii is a favorite, consider Punta Cana in the Dominican Republic. “Off the radar of most travelers, it’s now one of the fastest-growing destinations among Expedia travelers,” he said.

Other ways to save include considering alternative airports. Residents of the Santa Clarita and San Fernando valleys might consider flying out of Palmdale Regional Airport, where United Airlines will launch a service Tuesday with special introductory fares, including round trips to Washington, New York, Boston and Chicago via San Francisco for $318.