NEW YORK - CHRISTMAS holiday travel this year will likely end up as a casualty of the downturn in the economy, with Americans expected to travel less for the first time since 2002, travel and auto group AAA said on Wednesday.

The number of Americans traveling during the Christmas holiday period is expected drop by 2.1 per cent from last year's levels, AAA said.

'Without question, the economic downturn of 2008 eroded the discretionary income many Americans would have spent on travel and, for some, altered their travel plans throughout the year,' AAA President and CEO Robert L. Darbelnet said in a press release.

The AAA forecast is based on an online survey of nearly 2,300 adults nationwide, with an additional 5,000 Americans surveyed from the top 10 states of origin in the United States.

'A lot of people who normally travel at this time of year have decided not to go anywhere,' said Ms Angelika Johnson, the manager of One World Travel in Bisbee, in southern Arizona.

'They say 'money is tight'. They are not sure that they will have a job next year, a lot of people who own their own small businesses say business is down as the economy is down, and so money is less available everywhere - except for the rich folks who are getting a bail out!'

Ms Johnson, who has been in the business for 23 years, said she's never seen her business so slow. She estimated business is down about a third from the same time last year.

Airline travel will see the largest decline, with 8.5 per cent fewer travellers, according to the survey.

The number of Americans who intend to travel by car will dip 1.2 per cent from last year's levels.

Other forms of travel, such as train and bus, will experience a smaller decline of 0.7 per cent from last year, the survey found.

The US South-east is expected to produce the largest number of both car and airline travellers.

Although a slowing economy is keeping some from travelling, those who are travelling may benefit.

For instance, those travelling by car can expect gasoline to cost them an average of US$1.30 per gallon less than last year, AAA said. Hotel costs are also expected to drop, down 16 per cent from a year ago.

But those taking a plane will not fare as well, with average prices expected to climb 3 per cent.

AAA projected a decrease in travel this year for Memorial Day, Independence Day, Labour Day, Thanksgiving and Christmas, the five major US travel holidays. -- REUTERS