Jun 27, 2008 2:15 pm US/Eastern
AAA Expects July 4th Travel To Drop For First Time
BALTIMORE (CBS) ―
For the first time in more than a decade, AAA expects travel numbers to go down for the Fourth of July holiday.
Whether it's driving or flying to a destination, thanks to gas prices, it's not happening as much this year, reports CBS station WJZ-TV in Baltimore.
If these numbers are ever going to come down, the latest formula coming out of Wall Street is not the way to go.
OPEC's prediction of $170 a barrel this year plus a threat from Libya to cut oil production topped off with another setback for the dollar against the euro all add up to another record breaking crude oil price at $140 a barrel.
This will trickle down to the price at the pump. In fact, economists predict $7 a gallon by 2010.
Last month Maryland drivers paid $3.92 a gallon. They are paying more than $4.00 now.
The prices are forcing many people to change up their daily driving routines.
So imagine how many would-be vacationers are scrapping any plans for July Fourth.
AAA projects 40.5 million Americans will travel during the Independence Day holiday. That's down 1.3 percent from 2007's 41 million.
"It's important to note our projections, look at people who are traveling 50 miles or more," said Ragina Averella, AAA Mid-Atlantic. "There will obviously be people who opt to stay closer to home."
That includes people like Larry Caudle, who pays $120 to fill up.
"I'll just stay with the family that's here. But as far as going to another city or traveling somewhere else or going to the ocean, no, not right now," said Caudle.
"For July Fourth, I used to go up to York, Pa., or down to Virginia, but I'll probably spend more time in the local area," said Mark Carter.
When you have to pay so much to get out of town, there's definitely no place like home.
If you plan to brave the gas prices for a Fourth of July vacation, there is some good news.
Many hotel rates will be lower than in years past. You can ask about incentives like a free gas card.
Despite the cost of gas, AAA says 85 percent of people who travel this Independence Day will be driving.
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