Survey: Gas prices won't put brakes on summer travel

June 23, 2000
Web posted at: 2:57 p.m. EDT (1857 GMT)

(CNN) -- Despite skyrocketing gas prices, an estimated 37.5 million Americans are expected to travel this July 4 holiday, according to AAA Auto Club South. The group says that would be a 4 percent increase from last year, and the largest one-year jump since 1993.

Most vacationers -- 32 million -- will travel by motor vehicle, AAA predicts. The greatest number of motorists is expected come from the Southeast (8.1 million), followed by the West (7.7 million), the Midwest (5.8 million), the Northeast (5.5 million) and the Great Lakes (4.9 million).

Even with gas prices 43 percent higher than last year -- or 56 cents more a gallon -- neither holiday travel nor summer travel will suffer, forecasts AAA and the Travel Industry Association of America (TIA).

Where is everybody going? Towns and rural areas 25% Oceans and beaches 20% Cities 18% Lakes 11% State/national parks 7% Mountains 7% Desert 7% Theme/amusement parks 5%   SOURCE: AAA   PRICING GASOLINE Click here to see how production costs affect the price of gasoline     OIL PRODUCTION Click here to learn about the world's leading oil producers.     GAS BUDGET CALCULATOR Click here to calculate how much you spend each year on gas You'll need Flash to view two of these features. If you don't have it, get it here     MESSAGE BOARD Will rising gas prices affect your travel plans this summer?

Both organizations say a booming economy is offsetting the effects of gas prices. The TIA even expects a 3 percent increase in road travel.

"The average American family traveling by auto will spend only about 5 percent of its total vacation budget on gasoline," noted William S. Norman, the TIA's president and CEO, in an address to the National Press Club on Thursday.

The average length of a pleasure trip by car is about 700 miles (1,126 kilometers) round trip, Norman said. Based on that average, drivers will spend about $13 more to full up their cars for a vacation.

Still, travelers may choose to save money by taking shorter trips, renting smaller, more fuel-efficient cars, traveling at off-peak times or staying at a cheaper hotels, Norman said.

Some U.S. hotels and resorts are even offering discounts and vouchers to make sure motorists don't curtail their driving, according to the TIA.

It also expects air travelers to shrug off higher ticket prices from fuel costs.

Norman called attention to another TIA survey, the "Travel Sentiment Index," that gauges consumer interest in travel and perceived ability to travel.

While the study showed a slight drop in the overall perceived affordability of travel, it reflected an increase in travelers' perceptions of their ability to travel based on time and finance.

"We interpret (the findings) to mean that although travelers feel they have more financial resources to travel, they feel they might be getting less for their dollar," Norman said.

Oil industry officials said motorists in the Midwest, where gas prices in some parts have surpassed $2 a gallon, should soon get relief now that wholesale prices of gasoline have fallen.

The Petroleum Marketers Association of America, a gasoline retailing group, reported wholesale prices in the nation's central states have fallen by up to 40 cents a gallon since Monday.

Reuters contributed to this report.

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AAA
Travel Industry Association of America

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