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AAA Predicts Fewer July 4th Travelers

Back yard looks a lot better than the gas pump

June 13, 2008

According to AAA projections, more than 40 million Americans will travel during the July 4th holiday weekend, down 1.3 percent, or nearly 550,000 Americans, from the 41 million who traveled last year.

"While the numbers of travelers are a bit off from last year's levels, it is important to note that there are still millions of Americans that plan to travel," said AAA President and CEO Robert L. Darbelnet.

According to AAA, more than 13 percent of the U.S. population will be on the road this holiday weekend despite record gas prices. Many will be taking advantage of travel bargains that are being offered by hotels hoping to boost last minute business.

More than 34.2 million Americans (almost 85 percent of all holiday travelers) intend to travel by automobile, a 1.2 percent decrease from the 34.6 million people who drove to their holiday destinations last year.

Approximately 4.54 million Americans, 11 percent of holiday travelers, expect to travel by airplane, a 2.3 percent decrease from the 4.64 million who flew last year. Nearly 1.7 million plan to travel by train, bus or other mode of transportation.

"Clearly gas prices are continuing to take a toll on the traveler's budget, but the travel industry is responding, as they have in the past, with discounts, promotions and other incentives to get people traveling this holiday," Darbelnet said. "For instance travelers should look out for free gas card offerings, breakfast promotions, kids-eat-free deals, car rental discounts and, of course, always ask about AAA member discounts."

Automobile travelers across much of the country will have to contend with gasoline prices at or above $4 a gallon. The national average for self-serve regular is $4.07 a gallon. That is 13 cents a gallon more than last month and $1.09 a gallon more than a year ago. Nationwide, more than half of all states (30 out of 50) and the District of Columbia are averaging more than $4 a gallon.

AAA's Leisure Travel Index (LTI), which is based on available rates this holiday, reveals that Fourth of July holiday travelers can expect increases in other travel costs when compared to last year. For instance, air fares over the holiday weekend have increased 13 percent over last year.

In addition, AAA advises travelers that many airlines now charge fees for checked baggage and other services that were previously complimentary, so travelers should check with the airline or their travel counselor about any additional fees for their trip. Hotel rates for AAA 3 Diamond hotels are unchanged from last year's Fourth of July holiday travel period.

AAA's LTI shows an average increase in car rental prices of 12 percent. However, car rental rates vary from location to location, with some cities in AAA's index showing significant increases, while others show decreases compared to a year ago. AAA's index for car rentals is based on the average lowest intermediate size car daily rate in 20 U.S. airport locations. The rates do not include sales tax, insurance or other miscellaneous charges.

The greatest number of Fourth of July holiday weekend automobile travelers will originate in the Southeast with 8.7 million, followed by the West with 8.5 million; Midwest, 6.5 million; Northeast, 5.7 million; and Great Lakes, 4.7 million.

The West is expected to produce the largest number of air travelers with 1.78 million, followed by the Southeast with 813,000; Midwest, 727,000; Northeast, 695,000; and Great Lakes, 518,000.

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