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UPDDATE 1-U.S. July 4 travel seen down 1.3 percent - AAA

Thu Jun 26, 2008 9:08pm IST
 
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NEW YORK, June 26 (Reuters) - For the first time in 10 years, fewer Americans will be hitting the open road for the Independence Day holiday weekend as they feel the pinch of gasoline prices over $4 per gallon, auto and travel group AAA said on Thursday.

Some 40.45 million Americans will travel 50 miles or more from home during the July 4th holiday weekend, down 1.3 percent, or nearly 550,000, from the 41 million who traveled last year, according to the survey.

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.

"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," said AAA President and CEO Robert Darbelnet in a press release.

Average retail gasoline prices have reached $4.07 per gallon, increasing more than a $1 per gallon, or 36 percent, from year-ago levels.

Almost 85 percent will travel by car, while 11 percent expect to travel by plane. The greatest number of July 4th holiday travelers will come from the Southeast, while most air travelers will come from the West.

Even if they leave their cars at home, holiday travelers can expect to pay more for other costs. Airfares have jumped 13 percent, while car rental rates have increased 12 percent, AAA said.

Independence Day is traditionally the busiest travel weekend of the summer and boosts peak demand for motor fuel in the world's biggest energy consumer. (Reporting by Richard Valdmanis and Rebekah Kebede; Editing by Christian Wiessner)

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