Increasing gas prices may prompt travelers to pump the breaks and put a halt on their plans for a road trip. Gas prices could take a bite out of the travel market if American families pull back on spring and summer road trips.
According to AAA, gas near Yosemite National park in California, is already running close to $4.50 per gallon for regular. The east coast isn’t any better. In Washington, DC, the average price for gas has risen 40 cents over the last month to $3.68.
Business may drop a bit as people tailor their plans to suit their budgets if fuel prices stay high and continue to rise. For some, staying closer to home may be an option. That’s what travelers did during the summer of 2008 when fuel prices reached record highs, according to AAA national spokesman Troy Green in a recent CNN.com article.
Rising fuel costs has prompted airline carriers to look for ways to increase revenue. One idea is to charge travelers for items that were once free, including on-board sales of food, drinks, pillows, blankets and entertainment. Industry officials say airlines prefer complex fees to additional fare hikes because people will quit buying tickets if airlines raise prices too high.
American Airlines, United-Continental and Delta are among the carriers considering various new fees. The airlines have proposed charging customers for seat assignments, where a family of 4 will start paying anywhere from $10 to $16 to choose their seats.
Elite or business and first-class passengers would be exempt from the airlines’ proposed seat assignment fee. Travel experts believe airlines will waive the fee for travelers who book a flight and choose their seat within the last 24 hours. But fliers may pay a fee if they want to choose and confirm their seat well in advance.
Other proposed fees include charging for customized travel, including fancy food and champagne in economy class, security-line services and travel-concierge services.