Taking the Kids: Without busting the budget as gas prices reach record highs
Now what? Just as we feel safe planning for spring and summer trips, gas prices reach record highs. And they may get higher despite crude oil prices dropping at the moment, AAA says.
“This war is roiling an already tight global oil market and making it hard to determine if we are near a peak for pump prices, or if they keep grinding higher,” said AAA spokesman Andrew Cross. .
The national average for gas is at an all-time high of $4.32 this week, according to AAA — over $5 in the western part of the country. More than half of Americans surveyed by AAA have said they would make changes to their driving habits or lifestyle once gas was at $4 a gallon. Once gas reaches $5, three-quarters of those surveyed said they would have to make changes. Still, more than half of those surveyed said they still plan to vacation this summer.
“How rising gas prices impact American travelers depends on their socio-economic level,” said Amir Eylon, CEO of Longwoods International, which has just released the latest COVID and American Travel Sentiment Survey.
“Historically, one of the biggest impacts is that people do tend to stay closer to home,” Eylon said. “Regional drive markets tend to be a bigger focus than long-haul as air fares increase due to the rise in fuel costs. We do not expect a lot of cancellations at this point, rather an adjustment to how they spend.”
I’m sure that is a discussion going on in your house. Eylon predicted many travelers will reallocate their budgets to shift spending to cover the higher fuel costs. This could be in ways like selecting a limited-service hotel instead of a full-service property because of a lower rate and the inclusion of breakfast. It could also mean economizing on eating out (more fast food and less sit-down dining, packing food for the road). Likewise, they may spend less on discretionary items like souvenirs and entertainment. “Most people will still continue with their plans to go ... just adjust the spend to stay within a budget,” he said.
Casandra Matej, president and CEO of Visit Orlando, agreed, noting that 53 percent of Orlando’s out-of-state visitors drive to the destination. “We expect to see people still traveling this spring and summer. However, the rising cost for gas could impact length of stay and spending during their trip,” Matej said.
We will adjust. We all need a vacation, especially after the pandemic restrictions of the past two years. Maybe it means a difficult conversation with the kids about the souvenir budget or the hotel without the water park.
As the cost of road trips will increase as we head into summer, consider a tour or a cruise where you can lock in the price now, suggests AAA spokesman Ellen Edmonds, adding you should protect your investment with travel insurance.
This is also the time to book early and be as flexible as you can. It’s likely that air fares will increase as jet fuel costs rise.
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