July 6, 2022

Gas prices and inflation outpaced Covid with travel worries

Gas prices and inflation outpaced Covid with travel worries

After more than two years of largely staying home due to the pandemic, most Americans are ready to hit the road.

Until now inflation And breaking records Gasoline prices Overburden potential vacationers, even more than Corona virus disease concerns, according to a report by Morning Consult.

Nearly 60% of Americans said they will take more trips this year than last year, even though higher prices are now causing travelers to Reduce their plans and go shorter distancesThe exploratory studyCommissioned by the American Hotel & Lodging Association, found.

A third are likely to cancel entirely.

More personal finance:
Try these gas-saving tips
Former SEC chief economist says recession ‘likely’
It’s a good time for young investors to put their money in the market

Gasoline prices rose sharply, heading for the peak of the next summer driving season Russia’s invasion of UkraineIt shows no signs of slowing down.

The national average for unleaded gas hit a new high of $4.62 a gallon on Tuesday, according to AAA data. Prices are up more than 50% compared to last year.

Analysts say gasoline prices usually peak by mid-May, but this year’s prices at the pump may continue to rise until July and reach about $5 a gallon Or more.

Now, the AHLA survey has found, 90% of Americans take the price of gas into consideration in their travel decisions in the next three months.

The same share also says that inflation is a factor in their upcoming plans. Meanwhile, 78% now say Covid infection rates are a consideration when deciding whether to travel in the summer.

“The pandemic has instilled in most people a greater appreciation for travel, and this is reflected in the plans Americans are making to get out and in the summer,” said Chip Rogers, AHLA president and CEO.

“But once the negative impact of Covid on travel begins to wane, a new set of challenges emerge in the form of historical inflation and record high gas prices.”

Subscribe to CNBC on YouTube.