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Record 72.2 million Americans to travel for July Fourth -

AAA

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United Airlines and American Airlines ( AAL ) sees y/y rise in

bookings

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July Fourth international airfares down 13% compared to

2024

-Hopper

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Travel agents seeing surge in European trips due to

discounts

By Doyinsola Oladipo and Samantha Marshak

NEW YORK, July 2 (Reuters) - A record number of

Americans are set to travel for the Fourth of July holiday by

road and air, travel industry statistics show, but many

last-minute travelers say their plans depend on whether they can

get a good deal on airline tickets.

In more cases, the best value for travelers is for those

looking to go abroad this year.

Average airfares are sharply lower for international

trips than a year ago, with airlines discounting prices as

inbound traffic to the U.S. from Europe has fallen in part due

to stricter border controls and President Donald Trump's

policies.

Domestic U.S. airfares for the holiday travel period are

about 3% lower than a year ago, but tickets to Europe and Asia

are 13% cheaper, according to travel booking app Hopper.

"The tickets to Newark from Charlotte are like $250, and to

fly all the way to London is $500, so you may as well fly

international rather than just come up to New Jersey," said

travel nurse Ryan Patella, 24, who lives in Charlotte, North

Carolina, and has family in New Jersey.

About 10 travel agents told Reuters that some of their

clients are flocking to Europe this summer due to ongoing

discounts, and those staying in the U.S. are prioritizing the

destinations they can reach by car.

Travel agent Laurel Brunvoll said she is seeing a rise in

last-minute bookings to Europe because air ticket prices were

not surging as they had in the past two years.

"In 2023, I had several travelers who desperately wanted to

visit Portugal and paid almost $3,000 for one economy ticket,"

she said that this year prices are more "normal" at $875 to

$1,500 per person in economy.

About 72.2 million people are projected to travel more than

50 miles (80 km) for Fourth of July vacations over an eight-day

period, according to travel group AAA.

That would be a new record, with an estimated 1.3 million

more Americans on the roads and 80,000 more flying to their

destinations compared to last year.

SHIFTING STRATEGIES

Travel companies said consumers still have an appetite for

travel, despite broader concerns about inflation and the state

of the economy. But they are seeing a bifurcation between people

who have the funds to take advantage of long-haul flights, and

those who are taking shorter trips or opting out of air travel

and for road trips instead.

Ashley Pichardo, 24, a fire-alarm technician from San

Antonio, Texas, said she took budget carrier Spirit Airlines to

Newark to save on costs for a birthday trip.

"I gladly traveled with Spirit because of the price," she

said. "It was $300... flying with Spirit has been pretty good

with the prices. No complaints."

Domestic hotel rates for the July Fourth weekend are

averaging $213 per night, down 8% from $232 per night in 2024,

according to Hopper.

United Airlines is expecting 500,000 more travelers

over a 10-day period including the July Fourth holiday, with

international bookings up 5% year-over-year. Competitor American

Airlines ( AAL ) said it is expecting 5% more travelers over a

10-day period.

More people are booking last-minute this year, according to

data from online travel agency Expedia Group's ( EXPE ) vacation

rental arm Vrbo. It said there was a 15% increase in travelers

booking their rentals this summer within one month of their

trip.

Families looking for last-minute travel were experiencing

sticker shock when looking at the prices for last-minute

cruises, all-inclusive resorts and airfares, said Christy

Slavik, a travel agent and owner of the Mom Approved Travel

agency.

The cost of travel has some travelers shifting their

strategies instead of canceling plans, said travel agent Melissa

Newman. Driving to the cruise port instead of flying has helped

some consumers offset the cost as cruise travel demand continues

to boom, she said.