Slight Decrease in 4th of July Travel Means more Discounts

Travel Industry is responding to High Gas Prices with many more discounts.

Helena, Mont. 6/26/08– For the first time this decade, AAA estimates few Americans will be traveling this Fourth of July holiday. Still, AAA projects 40.45 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. This is the second consecutive travel holiday in 2008 where a year-to-year decrease was forecasted. AAA projected a nearly one percent drop in holiday travelers for the Memorial Day travel holiday in May. The forecast includes U.S. residents traveling 50 miles or more from home.

“With gasoline prices over $4.00 throughout much of the country, it is certainly no surprise that some Americans will be celebrating their independence at home this year,” says Denice Harris, AAA Spokeswoman. “But, there will still be many traveling despite record gas prices.”

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.

The West will produce the largest number of overall travelers with 10.5 million traveling from home, a decrease of nearly one percent from last year. Of these, 8.5 million will be traveling by automobile or RV while 1.7 million, will journey by air. The last time the West experienced a drop in Independence Day travel was in 2001.

“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.” Harris 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 $4.06 a gallon. That is 13 cents more than last month and $1.09 more than a year ago. Nationwide, more than half of all states (31 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 AAA Fuel Gauge Report Web site (www.fuelgaugereport.com) lists average daily prices for the nation, all 50 states and more than 250 localities for all grades of gasoline.

Research for Fourth of July weekend holiday travel projections are derived from the Travel Industry Association’s (TIA) Holiday Travel Forecast Model. The model was developed based on consumer travel intentions and TIA’s quarterly travel forecast data. The travel intentions data are collected through an online survey of over 2,000 adults nationwide, supplemented by an additional 6,500 Americans surveyed from the top 10 states of travel origin in the United States. Historical travel volume and other economic data such as GDP, disposable income, employment and travel costs (including fuel prices) are also incorporated into the model. Analysis of the data and the forecasts are produced by the Travel Industry Association, which conducts special research for AAA.

AAA MountainWest Club, is dedicated to providing its more than 160,000 members in Alaska, Montana and Wyoming with travel, insurance, financial, and auto-related services.  A fully taxpaying, not for profit corporation, AAA MountainWest, Inc. strives for improvement of motoring and traveling conditions, and is a leader for travel, civic and safety issues. AAA can be visited on the Internet at www.AAA.com.

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AAA Gas Savings Tips

• Stick to a routine maintenance schedule. Keeping tires inflated, moving components properly lubricated and ignition and emission systems operating properly will help ensure maximum fuel efficiency and extend the life of your vehicle.
  
  
• If you own more than one vehicle, use the more energy-conserving vehicle as often as possible.
  
  
• Consolidate trips and errands to cut down on driving time and miles traveled. When possible, combine them with your daily commute.
  
  
• If you are going somewhere new, get a map first from an online source such as AAA TripTik (www.AAA.com). Getting lost wastes gas as well as time.
  
  
• Comparison shop by phone or online if possible before heading out on the road.
• Slow down. For most vehicles, fuel economy drops off significantly when traveling more than 60 miles per hour. As a rule of thumb, you can assume that each 5 mph you drive over 60 mph is like paying an additional $0.20 per gallon for gas.
  
  
• Avoid quick starts and sudden stops. They waste fuel, are harder on vehicle components and increase the odds of a traffic crash.
  
  
• Lighten your vehicle by cleaning out the trunk, cargo areas and passenger compartments. A heavier vehicle uses more fuel.
• Keep your eyes open for low fuel prices but don’t waste gas driving to a distant filling station to save a few cents.