Independence Day Tips for Your Wallet

June 30, 2006 — -- A hot dog, a beer and a couple of sparklers -- that's how many people remember celebrating the Fourth of July in past years. But now, festivities have become so elaborate and the costs associated with the holiday so elevated that the Fourth seems more about dismantling your wallet than celebrating your independence.

Your finances may take a substantial hit from all sides this holiday weekend, which will likely require all or some of the following: a roundtrip airline ticket ($500); a couple of gas tank refills ($80); a hotel ($250/night); a Jet Ski rental ($75/hour); cocktails ($50); lobsters (market price to be determined); and a new outfit ($100).

So, if you're traveling to a Fourth of July party or are hosting one of your own, you could easily throw down more than $1,000.

A record 40.7 million Americans are expected to take trips during the long holiday weekend. That's up half a million people from last year.

"This is one of the most popular travel weekends. People are looking for savvy ways to make their travel plans," said Katie Deines, spokeswoman for Expedia.com. "A lot of people have marked this weekend on their calendars as the one they're going to take off for the summer."

More than a quarter of the total of Fourth of July travelers expect to stay at a hotel or motel. But if you haven't made your hotel reservations yet, AAA said finding available rooms could be a challenge.

Saving Through Packages

The best way to get that hotel room is to book it with your airline fare. By doing that, according to Expedia, you'll save an average of $200.

Travelers not only can book transportation and accommodation packages to save money, but there's also an increase in companies that offer other package incentives.

Hotels.com offers a $30 gas rebate on the site for those who book a two-night hotel stay. Online hotel booking sites are witnessing a changing trend in the types of accommodations that people are looking for.

"A lot of people are finding new ways of saving [money] through vacation rentals, condos or bed and breakfasts," said Nancy Williams of Hotels.com. "They can eat there in the kitchen and not dine out."

But online fares are not always so low, especially late in the game. If you want to travel from New York City to Boston by train, you might have some trouble. Amtrak is booked solid on a number of trains this holiday weekend. If you try to book a roundtrip airline shuttle ticket on that same short route, fares can average between $500 and $1,000.

Mike Pina, a spokesman for AAA, said there are a number of indicators that travelers are budgeting more this year than in previous years. "People are realizing they can't do anything about the price of gas," said Pina. "They'll just spend less money on hotels, [eat in] less expensive restaurants, and stay closer to home."

High gas prices are making people adjust their plans accordingly. The number of travelers using the fuel calculator (www.fuelcostcalculator.com) has doubled since 2005. "Americans want to know before they leave how much the total trip is going to cost," added Pina.

One simple way to avoid spending more money than you need to on gas, Pina said, is not to get lost. He advises travelers to determine the most direct routes through AAAmaps.com.

This year marks the smallest increase in travel since 2000. According to AAA, the number of Americans traveling over the July Fourth holiday is expected to increase by only 1 percent from a year ago. But just because that increase appears slight doesn't mean the roads will be empty. It's expected that 34.3 million people will still hit the highways this weekend.

Pina recommends doing a lot more advance planning and budgeting, and if you're looking for the most significant savings, do your planning online.

Last-Minute Savings Tips

Here are some last-minute tips from the Alliance to Save Energy (www.ase.org) to help save you some cash over the Fourth of July holiday.

Give your car a tuneup to improve gas mileage by about 4 percent.

Pack lightly when traveling, and avoid carrying items on your vehicle's roof. And an extra 100 pounds in the trunk cuts a typical car's fuel economy by 1 to 2 percent.

Curtail aggressive driving. Speeding, rapid acceleration and rapid breaking all waste gas and curb mileage by as much as 33 percent at highway speeds, according to the U.S. Department of Energy.

Use cruise control to cut fuel consumption by maintaining a steady speed during highway driving.

When renting a car, ask for a model that gets better fuel economy. Also, remember to fill up the tank before returning the car to the rental company, which always charges much higher gas prices and sometimes imposes an extra gas surcharge.

Protect your health and your wallet or pocketbook by walking to your destination whenever possible. You'll lose weight, lower stress, save gas and money, and reduce pollution.

If you own more than one vehicle, drive the one that gets better gas mileage whenever possible.

Buy your barbecue supplies in bulk.

Order lobsters through the Internet. They'll get shipped directly to your door, and they can cost as little as $7 a pound, which is less than a quarter of the average retail price for lobster -- $29.99 a pound as cited by the National Conference on Weights and Measurements.

About a quarter of Americans will take to the water this holiday. They're not just laying out on a simple towel from home and reading a book -- they're surfing, scuba diving, windsurfing and boating -- all activities that could cost hundreds of dollars.

If you'd like to avoid the costs associated with paying for a beach sticker and parking, check out this Guide from the United States Environmental Protection Agency.