“Gas Prices expected to drop 50 cents by summer.” “Rising Gas Prices: Many Turn to Alternatives.” “Gas Prices: Why Won’t They Drop?” The recent headlines surrounding gas prices the last few months seem to tell contradictory stories. Whether summer travel plans are threatened by a price increase or travel industry fears are soothed by a price decrease, gas prices have been at the forefront of both consumer attention and travel industry projections for the past five months.
In an effort to better predict the outlook for summer travel this year, in mid-March, an online poll by USA Today found that more than 75 percent of respondents were still planning to travel this season, albeit with some travel modifications. However, a more recent survey by LowFares.com found that 63 percent had cancelled travel plans already.
With such varied data, it’s understandable why AAA Travel has yet to release projections for the 2011 season. Despite the jarring stats in the LowFares.com survey and comments like, “I have not gone on a vacation in over 10 years. Would love to though, but the cost is simply too high,” there is reason to be optimistic.
Earlier this week, news circulated through the Associated Press heralding that gas prices are expected to peak in May and begin dropping again by June, giving those in the travel industry greater reason to stay positive as the season truly kicks off Memorial Day weekend. Additionally, in its summer 2011 travel forecast, STR noted that it expects summer travel revenue to increase 6.7 percent over last year and hotel occupancy to increase 1.7 percent over last year.
Despite the higher transportation costs and consumers looking for deals and vacation discounts this season, the overall sentiment remains that Americans are planning to travel. Hotels, attractions and others in the travel industry can make 2011 a successful season by providing summer vacation experiences that travelers are willing to drive for and ones they can’t get anywhere else.
Vacations, unique attractions and time together will always be worth more than a tank of gas.
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