Rising fuel costs biting into summer travel

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from MarketWatch:



Rising fuel costs biting into summer travel
AAA cites $4 gasoline, 8% hike in air fares as vacation spoilers
By Steve Gelsi, MarketWatch


NEW YORK (MarketWatch) -- About 360,000 fewer Americans will travel 50 miles or more this Memorial Day weekend as gasoline spikes near $4 a gallon and airlines' fares gain altitude on the historic rally in oil prices, the AAA said Thursday.

The ranks of U.S. travelers will be dented by about 1% to just under 37.9 million, with most brushing aside a nearly $1-a-gallon increase in gasoline prices to fill up the tank.

The average U.S. gasoline price rose about 2 cents to $3.78 a gallon in the last day, according to the Daily Fuel Gauge Report from the AAA. The cost of gasoline has risen 22% from its year-ago price of $3.10 a gallon, and it's up nearly 12% from its price of $3.39 a gallon a month ago.

Prices for crude oil crossed $100 a barrel for the first time in January and have pushed to a record level of nearly $127 a barrel in recent days.

Nearly 31.7 million Americans are expected to travel by automobile over the upcoming three-day weekend, a 1% decrease from the approximately 32 million people who drove a year ago.
Nearly 4.35 million plan to fly this holiday weekend, a decrease of 0.5%, and about 1.8 million plan to go by train, bus or other mode of transportation.

"Many Americans are feeling a financial pinch this holiday weekend from record-high gasoline prices and other factors in the economy," said Robert Darbelnet, AAA's president and chief executive.
"Despite the small decrease, we will still see a significant number of people traveling this weekend. More than 12% of the U.S. population will be celebrating the Memorial Day weekend away from home."

According to AAA's Leisure Travel Index, air fares over the Memorial Day weekend are expected to be 8% higher than they were last year: Air passengers will pay an average $179.
Car-rental rates will climb to a daily average of $45, up 45% compared with $31 a year ago.

"If a trend toward higher gas prices and fewer travelers were to continue, it could eventually impact travel-dependent companies that provide employment opportunities and tax revenues in almost every city and town in America," Darbelnet said. ......(more)

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