For the first time this decade, AAA estimates a decline in the number of Americans traveling during the July Fourth holiday travel period.

AAA projects 40.45 million Americans will travel during the July Fourth holiday weekend, down 1.3 percent, or nearly 550,000 Americans, from the 41 million who traveled last year.

This is the second consecutive travel holiday in 2008 where a year-to-year decrease was forecasted. AAA projected a nearly 1 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 travel," said AAA President and CEO Robert L. Darbelnet.

According to AAA, more than 13 percent of the U.S. population will be on the road this holiday weekend despite record gas prices. Many will be taking advantage of travel bargains that are being offered by hotels hoping to boost last-minute business.

More than 34.2 million Americans -- almost 85 percent of all holiday travelers -- intend to travel by automobile, a 1.2 percent decrease from the 34.6 million people who drove to their holiday destinations last year.

Approximately 4.54 million Americans -- 11 percent of holiday travelers -- expect to travel by airplane, a 2.3 percent decrease from the 4.64 million who flew last year. Nearly 1.7 million plan to travel by train, bus or other mode of transportation.

"Clearly gas prices are continuing to take a toll on the traveler’s budget, but the travel industry is responding, as they have in the past, with discounts, promotions and other incentives to get people traveling this holiday," Darbelnet said. "For instance, travelers should look out for free gas card offerings, breakfast promotions, kids-eat-free deals and car rental discounts."

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 $4.09 a gallon, 15 cents a gallon more than last month and $1.11 a gallon more than 1 year ago. Nationwide, 30 out of 50 states, as well as the District of Columbia, are averaging more than $4 a gallon.

AAA's Leisure Travel Index (LTI), 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. Air fares over the holiday weekend have increased 13 percent over last year. In addition, many airlines now charge fees for checked baggage and other services that were previously complimentary.

The greatest number of Fourth of July holiday weekend automobile travelers will originate in the Southeast with 8.7 million, followed by the West with 8.5 million; Midwest, 6.5 million; Northeast, 5.7 million; and Great Lakes, 4.7 million.

The West is expected to produce the largest number of air travelers with 1.78 million, followed by the Southeast with 813,000; Midwest, 727,000; Northeast, 695,000; and Great Lakes, 518,000.