麻豆传媒

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Higher gas prices are sure to affect people taking summer vacations this year, right? Perhaps, although how much remains to be seen. Janet Harrah, director of the Center for Economic Development and Business Research at 麻豆传媒, says the rising price of gas alone won't keep many people from taking a vacation.

Harrah: 鈥淲hen you're looking at the price of gasoline and its effect on consumer travel plans, it's not the price of gasoline in and of itself that's going to affect your overall travel budget. For example, at $2 a gallon versus $4 a gallon, if your car gets 20 miles a gallon on the highway, and you're going a thousand miles round trip, the difference that $2 versus $4 is only a hundred dollars in your total trip costs."

Of course, higher prices at the gas pumps are only one of several factors that is putting the squeeze on consumers.

Harrah: "Right now we have rising food prices and rising gasoline prices and they've risen quite dramatically in the last six months, and consumers are really feeling the pinch."

"As food and gasoline prices have been rising, the question has arisen as to what impact that's going to have on consumers' plans for summer travel and summer vacations."

Harrah says even if high gas prices scare off some travelers, most are reluctant to forego the traditional summer vacation.

Harrah: 鈥淧ast experience has shown that despite higher gasoline prices, people don't give up their summer vacations. They just try to look for ways to reduce the total cost."

And Harrah says there are several ways that money-conscious consumers can stretch their travel dollars.

Harrah: 鈥淭here are a variety of ways that consumers can reduce the overall cost of their summer vacations. For example, they may decide to stay with family and friends rather than stay in a hotel, or they may decide to go camping. They may decide to go for a one-week vacation rather than a two-week vacation. They may look for a lower cost location. For example, rather than flying to Hawaii, you stay in Florida."

The timing of the federal tax rebate may benefit the travel industry, as Harrah explains.

Harrah: 鈥淚 think one of the things the tourism industry is looking at is the timing of the federal government tax rebates. It's coming right at the start of this travel season. It will give consumers a pool of money that they could spend, are very likely to spend on luxury items, vacation being one of those items."

So, all things considered, Harrah says this may not be a bad year to take a summer vacation.

Harrah: 鈥淎nd actually in spite of high gas prices, it might actually be a good year to travel from a cost perspective because most major tourist locations are worried about consumers wanting to stay home, and are consequently really competing for consumers and offering a lot of discounts and a lot of really good package deals."

If you prefer to stay closer to home, there's always the option of day trips, and this may be a good summer to experience local and area attractions.

Thanks for listening. Until next time, this is Joe Kleinsasser for 麻豆传媒.