AAA estimates a slight decline in the number of Americans traveling during the 2008 Fourth of July holiday travel period. The auto club projects 40.5 million Americans will travel during the July 4 holiday weekend, down 1.3 percent or nearly 550,000 Americans from 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.

“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 plan to travel,” says Martha M. Meade, Manager of Public and Government Affairs for AAA Mid-Atlantic.

According to AAA, more than 13 percent of the U.S. population will be on the road this holiday weekend 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 last year. Approximately 4.54 million Americans (11 percent of holiday travelers) expect to travel by airplane, a 2.3 percent decrease from last year. Nearly 1.7 million plan to travel by train, bus or other mode of transportation.

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 more than last month and $1.09 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, 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 check with the airline or your travel counselor about any additional fees for your trip.

Hotel rates for AAA 3 Diamond hotels are unchanged from Fourth of July weekend 2007. Car rental rates vary from location to location, but this holiday travelers will see a 12-percent increase in car rental prices.

“While gas prices are reducing the amount of many family’s vacation budgets, some popular tourist destinations are responding with special offers to attract travelers and make celebrations possible,” says Meade. “Hotels are selling rooms at last year’s rates and travelers will find free gas card offers, complimentary breakfasts with hotel stays, kids eat free deals and more. When consumers seek out all of the special offers and combine them with membership discounts, coupons, etc., they can significantly reduce the cost of their vacation.”

Research for Fourth of July weekend holiday travel projections are derived from the Travel Industry Association’s 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.