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Fuel Prices, Costs May Keep People Home For Fourth

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Fuel Prices, Costs May Keep People Home For Fourth

CHICAGO (STNG) ― If rising gas prices and other costs associated with leaving town for part or all of the Fourth of July holiday are keeping you close to home, you're not alone.

Despite July 4 falling on a Friday and allowing for a three-day weekend, AAA Chicago estimates a decline in the number of Americans traveling during the holiday period.

However, AAA projects 40.45 million Americans will still travel during the holiday weekend, down 1.3 percent, or nearly 550,000 from the 41 million who traveled last year, according to a release.

This is the second consecutive travel holiday in 2008 where a year-to-year decrease was forecast. AAA projected a nearly one percent drop in holiday travelers for the Memorial Day holiday. The forecast includes residents traveling 50 miles or more from home.

"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 who plan to travel," Brad Roeber, AAA Chicago president, said in the release.

According to AAA, more than 13 percent of the U.S. population will be on the road this weekend despite record gas prices. Many will be taking advantage of travel bargains 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 who drove to holiday destinations last year.

Approximately 4.54 million (11 percent) expect to travel by plane, 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.

In Illinois, nearly 1.62 million people will travel during the holiday weekend. The majority, 1.16 million (72 percent) will travel by motor vehicle. About 251,000 people will be flying.

"Fuel 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." Roeber said.

Automobile travelers across much of the country will have to contend with gas prices at or above $4 a gallon. The national average for self-serve regular is $4.07 a gallon. That is 13 cents more than last month and $1.09 higher than a year ago. In Illinois, drivers are paying $4.14 a gallon, $1.00 more than last year. Indiana drivers are paying $4.05 a gallon, up $1.13 from a year ago.

As of Tuesday morning, the price of a gallon of regular unleaded gasoline in the Chicago metropolitan area was $4.216, according to the AAA, compared to $3.254 per gallon a year ago. In the Gary, Ind. area, a gallon of gas was averaging $4.131 Tuesday morning, compared to $2.914 a year ago, according to AAA.

AAA's Leisure Travel Index, which is based on available rates this holiday, reveals that Fourth of July holiday travelers can expect increases in other travel costs as well. For instance, air fares over the holiday weekend have increased 13 percent. In addition, many airlines now charge fees for checked baggage and other services that were previously complementary.

Car rental rates vary from location to location, but this holiday travelers will see a 12 percent increase in car rental prices.

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, according to AAA.

(Source: Sun-Times News Group Wire © Chicago Sun-Times 2009. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)