Bad News for Summer Car Rental Agencies, Car Travelers and Auto Traveling Destination Points
Bad News for Summer Car Rental Agencies, Car Travelers and Auto Traveling Destination Points
By Lance Winslow
It seems each year around spring time when people are planning their automobile trips or during the 3-day weekends like on Labor Day, that fuel prices are at their highest. Right now, many motorists are already feeling the pinch with gasoline prices in six states over $4.00 per gallon, when last year, they were complaining when fuel topped $3.00 per gallon. How much more of this can our economy take, and what about the travel sector? Airline jet fuel is now well over $3.00 per gallon and that industry is worried as you can only fuel surcharge the vacation traveling public so much before they stop flying.
The same is true with automobiles, as many families are re-considering their vacation time plans. This is very bad news for automobile destination points, places where the airlines really do not fly too, the Grand Canyon for instance, local ski resort areas, and even the redwood forest. Many museums and tourist towns are very worried, as well they should be. Some popular College Spring Break Towns are already seeing a decline and remember college students with their parent’s paying the credit card bills are far less frugal than a family on a local vacation.
How far will gas prices go? So far there have been a few smaller towns with gasoline prices in excess of $5.00 per gallon. Where? Well, in those very out-of-the-way tourist towns that rely on car traveling vacationers for their livelihood. What is worse is that unless the strategic military reserve releases fuel into the market or stops buying fuel to replenish what it uses for a while, then, gasoline prices could go even higher this summer.
Some car rental agencies are stating that folks with larger cars will rent smaller ones to save money on gas, but many industry analysts are saying it’s a bad deal all the way around, and could lead to a decline in auto rental sales. Of course, all this is based on the region where those car rental agencies actually are. Nevertheless, gasoline prices are affecting the travel industry in more ways than one.
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