CHICAGO, June 24, 2026 — High fuel prices will flatten consumer travel by car and airplane this 4th of July holiday, according to the Automobile Association of America (AAA), tempering what traditionally has been a surge in demand for meals prepared away from home.
The only forms of tourism that will likely see a surge between June 27th and July 5 are trips by bus, train and cruise ship, the association of car owners said.
It expects travel by ship to be potentially record-setting because of the cruise industry’s pricing model. AAA explained in releasing its forecast that travelers appreciate paying a single all-inclusive price for their lodging, meals and entertainment, simplifying their budgeting. It anticipates that more than 4.8 million American tourists will board ships for the nation’s 250th anniversary, which would set a new record.
Americans traveling by automobile, in contrast, will inch upward by about a tenth of a percentage point, to 61.4 million, compared with last year’s nose count of 61.3 million, AAA reported. Road trips will remain the most popular form of travel for the early-summer holiday, accounting for 85% of all excursions.
Only 8% of domestic holiday travelers, in contrast, will opt to take a plane. That amounts to 5.9 million consumers, or 0.2% more than boarded a domestic flight last year.
According to AAA, both air and car travel are being negatively affected by high fuel prices, which most observers attribute to the war with Iran.
The average price of a domestic airline ticket has jumped to $830, according to AAA, with the fares to popular cities about 5% than they were pre-war.
Meanwhile, gas prices are at their highest levels in four years, the association noted. Other sources project that the price of a gallon of regular gasoline will average about $4 by the 4th, compared with last year’s mean of $3.15 and the all-time high of $4.80 that was notched in 2022.
AAA’s research shows that the five most popular domestic destinations for U.S. travelers will be Seattle, Orlando, Anchorage, Miami and New York City.