On the road?
As gas prices rise, many rethink vacation plans
Last Modified: Saturday, May 12, 2007 at 1:15 a.m.
As summer approaches, many families will be making plans to pack their bags and drive to their favorite destinations.
National average
$3.042 $3.228 $3.345
Month ago
$2.795 $2.966 $3.074
Year ago
$2.885 $3.063 $3.174
Alabama average
$2.861 $3.058 $3.149
Highest recorded average price of gasoline in Alabama:
Source: aaa.com and fuelgaugereport.com
Some of these trips will be forfeited, however, because of high gas prices.
Vacationers may choose to fly instead of drive because gas prices nationwide are expected to be more than $3 a gallon, which can break the bank when it comes to traveling long distances.
Whether these prices decrease or increase depends on several factors, including the demand for and the supply of gasoline this summer, said Jim Couch, professor of economics at the University of North Alabama.
“If conditions are similar to last year, look for prices to increase, plateau over the summer and then decrease in September,” Couch predicted. “More daylight, better weather and summer vacations all act to increase summer demand for gasoline by, on average, roughly 5 percent.”
Crude oil accounts for almost 60 percent of prices at the pump, Couch said.
“With OPEC responsible for roughly 40 percent of the world’s production and refineries operating at capacity, supply shocks are certainly possible,” he said.
Couch said that increased demand, both in the United States and across the globe, is also contributing to the price increase.
Clay Ingram, public relations and marketing manager with AAA Alabama in Birmingham, said that in the past, the general public kept gas prices in check by conserving fuel and price shopping.
“When the hurricanes hit, … our gas prices were suddenly close to $3 a gallon, and availability of gas was a concern,” Ingram said. “Even after the availability issue went away, our prices were still pretty high.”
He said that when consumers go back to price checking and conservation tactics, it might make a difference in the demand and price rates.
Gas prices affect many things across the board, including cost to transport goods and the price of the goods themselves, as well as the price for businesses to operate.
Gas prices also factor into people’s decisions for vacation and budget planning, Couch said.
“Some travel experts point to a price of $3 as a tipping point in which some begin to rethink a family vacation,” Couch said.
Marie Curren, with the marketing and reservations department for Brett/Robinson Vacations in Gulf Shores, said the high gas prices don’t appear to be affecting their customers’ decisions.
“About 98 percent of the market is a drive-in market for us,” Curren said. “Anything within eight hours, people are usually willing to drive.”
She said 60 percent of their business is out of state, but mostly from across the southeastern U.S., which is within decent driving distance.
“If they want, they can drive very little here,” Curren said. “A lot of people choose the condo route for the convenience of not having to go out.”
She said many of the company’s condominium properties in Gulf Shores and Orange Beach are within walking distance to several shops and restaurants.
“The thought of rising gas prices is in the back of our mind but it hasn’t affected us yet,” Curren said. “We hope that it won’t affect the vacationer making a decision to come to this area.”
Instead of changing plans altogether, some travelers might be changing their destination selection, but even that is a rare thing, Ingram said.
“For most people, their gasoline cost for going on vacation is a relatively small part of their overall vacation expense; when you factor in all the other things that people do, they’re not going to let an increase in gas prices keep them at home,” he said.
Alison Stanfield, assistant director of Florence/Lauderdale Tourism, said the Shoals tourism actually benefits from times when gas prices are high.
“We are close to larger cities and are just really good as a vacation destination,” Stanfield said.
She said some tourists choose the Shoals because it is within affordable driving distance from cities such as Memphis, Nashville and Atlanta, and the region has popular sites such as the Marriott Shoals Hotel and Spa, the Robert Trent Jones Golf Trail and Joe Wheeler State Park.
Money-saving travelers might choose to counteract the price of gas with cutting back in other ways while on vacation.
“Americans are notorious for finding ways to offset an increase in cost like that,” Ingram said. “We’re not suggesting that people cancel their summer vacation plans. We do suggest that people conserve fuel when they can.”
TimesDaily Staff Writer Kenda Williams can be reached at 740-5720 or kenda.williams@timesdaily.com.
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