The sluggish economy and an increase in gasoline prices will push more Americans to stay at home during the July 4 holiday weekend.

AAA has projected the number of Americans traveling fifty miles or more during the fourth of July weekend will dip 1.9 percent, from 37.8 million last year to 37.1 million in the present year.

AAA president and chief executive officer, Robert L. Darbelnet, said, "Many Americans remain cautious about the outlook for their personal finances, and these attitudes are reflected in the slight decline in travel we are forecasting for the upcoming holiday weekend." 

Although Air trips will account for just five percent of leisure travel, yet the airline industry is projected to witness a 4.9 percent increase in leisure bookings due to declining fares.

Number of auto trips will be trimmed down by 2.6 percent to 32.6 million because of increasing gasoline prices and lower air fares.

On an average, every American family traveling during the July 4 holiday weekend is expected to spend about $1,160, with transportation and accommodations accounting for half of that.

These projections by AAA are based on a research conducted by an economic research and consulting firm in Boston known as IHG Global Insight.