Monday, June 29, 2009

AAA Predicts Travel Decrease

AAA says travel rates will drop slightly this Fourth of July, due to a sagging economy and rising fuel prices. They estimate about 700,000 fewer people taking a trip over 50 miles from home. But as gas prices go up and airfare drops (about 16% from last year), plane traffic is expected to increase almost 5%. AAA spokeswoman Bevi Powell says the decline in travellers makes destination spots more eager to give good deals. "Hotel rates are about 12% less year-over-year than last year. There are a lot of great last-minute deals that are out there," says Powell. Gas prices are still lower than last year, though, and the drop in travel doesn't nearly match the shift from 2007 to 2008. That period saw a 10.5% decline in travel, while this year's decrease accounts for a 1.9% drop.

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