Rising Gas Prices Aren’t Keeping Americans from Traveling

Key Insights

  1. With pandemic restrictions lifted, Americans are looking to travel again.
  2. Rising fuel prices have only increased the cost of flights by roughly 10%.
  3. Staffing shortages are cited as the most likely reason for increases in the cost of flights.

Just as many Americans start to see the “light at the end of the tunnel” after lockdowns and COVID-19 restrictions have been lifted, gas prices skyrocket to levels higher than the 2008 recession. So, how will rising gas prices affect future travel? According to travel and hospitality expert Sarah Dandashy, not very much.

While everyone is seeing the prices go up at the pump, overall Americans are not letting that expense impact their vacation plans. This is likely due to many delaying their travels during the peak of the pandemic, and now they’re ready to get back to exploring.

However, Dandashy commented that since the gas prices affect car and air travel, Americans are still considering their budget when planning. “More so, these rising gas prices are influencing how many times people will go on trips as well as how far people are willing to go,” she explained.

Interestingly enough, airfare has only risen by 10 percent per flight — at least for Delta and Jet Blue airlines. What does that translate to? “About $10–20 of an increase in a price for a one-way fare. So that really isn’t that much,” Dandashy added.

Instead, like many other industries, the greatest issue for airlines is staffing, and the shortage is impacting all roles from pilots to baggage handlers. To compensate for this, airlines are having to reduce flight options, which will in turn increase competition to get a seat. In reality, that will influence flight costs more than gas prices will.

Ultimately, Dandashy remains optimistic about the outlook for the travel industry and hopes listeners have something exciting planned for the year. Hawaii, anyone?

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