Exploding gas prices, a housing burst and the shaky state of the stock market have all combined to create a tenuous economy that has already had a direct impact on travelers and vacationers in the U.S. In addition to the weak dollar with respect to the euro, the cost of flying across the pond seems to increase on a daily basis. In an effort to combat high fuel prices, United Airlines has recently joined American in the latest fee taxed upon travelers for what has long been a complementary service – a flier gets to bring his luggage with him!
Not only has international travel been impacted but domestic travel as well, with one of the hardest hit areas being family summer vacations. With gas prices exceeding $4 per gallon, families are rethinking and reorganizing the family road trip. The Travel Industry Association, which develops an annual Travel Price Index, estimated a 6% increase in travel prices in April from one year prior. The major driver of this increase is, of course, gas prices which have increased well over 20% in the past year. This is all in contrast to the Consumer Price Index which increased a seemingly mere 3.9% during the same period.
Families who take the quintessential Great American Road Trip have been directly impacted by these increases. Indeed, AAA recently released a report that estimates the cost of driving a new car at 54.1 cents per mile – a 1.9-cent increase from last year. AAA’s sensitivity to fuel prices is reflected in its online travel planner which lists current gas prices at over 100,000 gas stations in the U.S.
At Lake Bruin, Louisiana, Memorial Day weekend was a crowded day on the lake. A rural oxbow lake near the Mississippi River, the lakeshore is dotted with family homes and holiday camps. Vacationers in the local bait and gas shop were heard discussing the increased number of people. “We think it is because families who usually drive down to the beach or go somewhere else have stayed closer to home this time – gas is just too high!” lamented lake-goers. “There seems to be far more people here for a holiday weekend than normal,” agreed another.
From Hollywood to Reality
Another vacation method families have long used to both limit costs and heighten the vacation experience has been the home exchange. While not a new concept, the idea was popularized in the 2006 movie The Holiday, starring Cameron Diaz and Kate Winslet. The premise is simple: potential vacationers are matched via a website based on where they live and where they would like to visit – and they stay in each other’s homes.
A quick read-through of some of the most popular websites that handle these exchanges, such as HomeExchange.com and 1stHomeExchange.com, will show that most of these homes are very nice abodes. Most profiles tell a bit about the owners as well, revealing a large proportion of professionals, including physicians, attorneys, professors and retirees; some are couples, others have small children. This seemingly affluent group comes with the expected nice selection of homes as well, ranging from suburban McMansions to Caribbean condos to beach bungalows.
However, even within this group of sophisticated yet frugal vacationers, the dynamics are changing. Whereas a year ago many American homes listed were requesting exchanges in Europe, Mexico, Australia and around the world, many recent updates are sticking closer to home. Listings give site members a spot to list where they are interested in visiting. Although there are still many around the world, a higher proportion now lists areas much closer to home than did a year or two ago.
One particular listing in Sarasota, Florida, for instance, states, “We are looking for a place close to home, due to the weakening economy – two days of driving distance at the most.” Another listing in Georgia lists its preferences as Tennessee, North Carolina and Florida. A Sacramento, California, ad requests, “Anywhere in California.” Several Hawaii listings request, “Any other island in Hawaii.” While these types of listings are not singularly the result of the price of gasoline (some people just like to stay close to home), the increased frequency with which these types of requests appear seems to be.
For now, these changes in the travel habits of Americans seem to be only slight. Vacationers are still traveling, just perhaps for shorter distances or driving rather than flying – a tightening of the belt but still relatively slight. With fuel prices steadily increasing, however, the long-term fallout on the travel industry and the great American summer vacation remains to be seen.
Related posts:
Blogs RSS feeds [
Leave a Reply