(CHARLOTTE) -- Thanks to reduced gasoline prices, an improving economy and a midweek July4th, Independence Day holiday travel in North Carolina is expected to increase by 5 percent over last year, according to AAA Carolinas.

More than one million North Carolinians are expected to fly or drive 50 miles or more away from home for the July 4th holiday, with some combining their holiday with Monday and Tuesday (July 2nd and 3rd), others with Thursday and Friday (July 5th and 6th).

North Carolinians will find self-serve, regular gasoline about 30.9 cents a gallon cheaper than Memorial Day and roughly 49 cents cheaper than last July 4th. The state average is $3.244 with the highest price in Charlotte at $3.331 a gallon and the cheapest in Rocky Mount at $3.188.

South Carolina continues to have the cheapest gasoline in the nation at $2.98.3 cents a gallon.

“We predict slightly more travelers will combine Thursday and Friday as part of their holiday weekend in order to enjoy Independence Day celebration activities, such as Wednesday night fireworks, encouraging travelers to stay at their destination overnight,” said David E. Parsons, president and CEO of AAA Carolinas.

Overall travel has rebounded this year with AAA Carolinas’ Travel Agency seeing a 21% increase in air travel compared to last year, an increase of 26% in car rentals, a 9% in hotel bookings and a 5% increase in personalized TripTiks for automobile travelers.

“The appetite for travel of all kinds has returned this year,” said Parsons.

Because July 4th falls on a Wednesday this year, the calendar plays a role in driving holiday travel volume upwards. The last time July 4th was on a Wednesday, holiday travel set a record of 1,090,300 vacationers who traveled more than 50 miles from home by air or motor vehicle.

More than a million – 1,008,700 – are expected to drive, with slightly more than half expected to begin their five-day holiday on July 4th; the remainder beginning theirs on Friday, June 30th.

Air travel passengers state-wide will total 51,800, up from 47,000 flyers last July 4th – a 9.9% increase over last year, due in large part by the extended 5-day holiday travel period, which allows more time for longer distance trips.

Additionally, airfares are flat year over year, with an average lowest round-trip rate of $200 for the top 40 U.S. air routes in both 2011 and 2012, according to AAA’s Leisure Travel Index.