Travelers may need to tighten their budgets when they hit the road as gas prices are expected to continue to rise, according to a recent national survey cited on USAToday.com.
Near the end of March, the national average for regular gasoline was $3.90 a gallon, an increase of 32 cents from last year.
The rising gas prices is affecting drivers’ consumer behavior, resulting in less spending at their vacation destination. Nearly 44 percent of those surveyed said they would reduce their shopping and 37 percent said they’d also limit their eating out. For people traveling for business, many said they would also spend less on accommodations, eating out and shopping. They also plan to be more efficient when they travel by scheduling the maximum amount of appointments in the shortest amount of time.
Retailers will need to be conscious of this trend. While a tank of gas may only cost an extra $2 to $3, people will curb their shopping and change their driving habits. These changes ripple out through retail and affect the industry’s bottom line.
The travel industry plans to counter rising gas prices by offering deals and extra values, such as hotels offering incentives for multiple-night stays, to appeal to travelers.
Source: USA Today, March 2012