Even if summer is the last thing on your mind these days, rest assured that the businesses banking on a robust travel season are already fretting over the obvious. Gas prices keep climbing, and that's bad news all around. Last week, most of the major airlines raised their fares by $10 to help offset the rising cost of jet fuel. When American Airlines' parent, AMR
Will the airlines be able to stick to their higher fares? It's a financial necessity, but price wars make companies do silly, silly things. In the end, the costs of consumer vacations are inching higher for those traveling by air.
But what about the traditional road trip? Well, prices at the pump will have a definite impact there. They have already created a shift in the automotive industry, where truck and SUV powerhouses like Ford
Gas prices have risen by more than $0.20 a gallon over the past month. Fuel costs may be just a small part of any vacation budget, but those costs might really add up if the pumps are still pricey in a few months.
If the perception exists that fuel prices will keep inching higher, it may weigh heavy on the minds of those planning long summer vacations. That would certainly be bad news for everyone from hotel chains like Hilton
Now for some more summer reading:
- Some companies are looking to extend their summer seasons.
- Last summer saw more than just travel industries on a rollercoaster ride.
- The warmest months of the year may be the best ones to think about taxes.
Longtime Fool contributor Rick Munarriz will be staying in his home state of Florida for his family's summer vacation this year. He won't necessarily find things any cheaper at the pumps, though, since Florida is a pretty big state. He owns shares in Disney and Great Wolf Resorts. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.