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Americans driving less in face of higher gas prices

Washington - Americans are cutting down their driving in the face of high gas prices.

The Federal Highway Administration says in a new report that in April travel fell by 2.4 percent - or 6.1 billion miles. That's the second straight month of declines and the largest decline since February 2010.

Americans drove 250.5 billion miles in April.

At the same time, AAA forecasts just 39 million Americans will travel 50 miles or more from home during the Independence Day holiday weekend, a 2.5 percent decline from the 40 million people who traveled a year ago.

"AAA is projecting a slight decline in the number of Independence Day travelers mainly due to fuel prices being approximately one dollar per gallon higher than last year," said Glen MacDonell, director, AAA Travel Services. "Increased fuel costs are also responsible for a shift in the demographics of the typical Independence Day traveler as higher prices impact lower income households more significantly."

About 32.8 million people plan to travel by automobile and that's a decline of almost a million auto travelers from the 33.7 million who drove last year. Total travel in the U.S. for the first four months is down 0.8 percent — or about 7.1 billion miles to 939.2 billion miles.

Travel fell the most in April in the 12-state North-Central region, which includes Michigan, Ohio, Indiana and Illinois. Total traffic fell 3.5 percent to 55.9 billion miles in April in those states.

In March, nationwide traffic fell 1.4 percent — or 3.5 billion miles — after traffic increased in January and February.

Americans drove 3 trillion miles in 2010, up 0.6 percent — or 1.4 billion miles.

Gasoline prices have fallen in recent weeks, after rising steadily since late February and hitting a nationwide average of $3.97 in May.

The Energy Information Agency says as of Friday the average retail price of gasoline is $3.65 a gallon - up $0.91 a gallon over a year ago - but down six cents in a week.

AAA expects the national average price for regular gasoline to remain between $3.60 and $3.70 per gallon during the Independence Day holiday weekend.

It's not clear what impact the drop could have on Michigan's tourism industry. The state saw gains in 2010, generating an estimated 10,000 new jobs as out-of-state leisure visitor spending soared 21 percent, the first time non-resident visitors outspent in-state travelers.

AAA Projects a 2.5 Percent Decrease in Independence Day Travel as ...

Traveler as higher prices impact lower income households more significantly.”

The amount of money spent each month on gasoline is unlikely to vary much across household income groups, however as a share of total spending fuel is obviously going to consume a larger share of the budget for lower income households. As a result, the percentage of travelers with a household income of Approximately 32.8 million people plan to travel by automobile and that’s a decline of almost a million auto travelers from the 33.7 million who drove last year. Automobile travel remains the dominant mode of transportation (84 percent of holiday travelers) despite gasoline prices about a dollar per gallon more expensive than a year ago in many parts of the country. If current market conditions persist, AAA expects the national average price for regular gasoline to remain between A survey of intended travelers found that 56 percent said rising gasoline prices would not impact their travel plans. For the remaining 44 percent who said rising gas prices would impact their travel plans, seven out of 10 will economize in other areas and three out of 10 are planning to take a shorter trip or travel by a different mode of transportation.

Travelers concerned about how fuel prices will impact their travel budget can use AAA’s free, GPS-based TripTik® Mobile application to compare prices for all grades of gasoline at nearby stations. TripTik Mobile is available for iPhone and Android devices. Travelers may also use TripTik Mobile to get maps and directions, AAA Approved and Diamond Rated hotel and restaurant information complete with AAA inspector notes, plus details about attractions, events and Approved Auto Repair facilities.

Number of air travelers expected to increase by nine percent A little more than three million leisure travelers (eight percent of holiday travelers) will fly during the holiday weekend, a nine percent increase from last year’s 2.75 million air travelers. This increase continues a rebound in air travel that began in 2010 following the lowest years for air travel in the past ten – 2009 and 2008.  The rising cost of gasoline is a contributing factor to the increase in air travel, as the increasing cost of travel by car is making air travel a more viable option for some travelers despite recent increases in air fares. The remaining eight percent of holiday travelers are expected to travel by other modes, including rail, bus and watercraft.

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