Todays travel blogshot is highlighting what is sure to be a growing trend in travel articles this summer. Featuring two clips both talking about the cost of travel. The first clip comes from a Forbes article sharing perspective on what is sure to be a major shift in travel plans and destinations for people all over the world. The second clip comes from a USA piece stressing the clear change in travel patterns that is already effecting the industry in a big way. Emphasizing not only the impact on vacations but on business travel. There does not seem to be an end in sight for this crisis as prices continue to rise and the world continues to rely on oil to fuel our transportation. Be sure to check out the video clip and leave your comments at the end.
Finding Cheap Destinations
“Luxury travel hasn’t quit, but it has changed,” says Trevino. “People want more value–they’re looking for more inclusive, personalized, one-on-one experiences.”
Travel search engine Kayak.com asked more than 3,800 of its users how the struggling U.S. economy has influenced their summer travel plans. The company found that while the economic downturn has caused an overwhelming 79% of travelers to alter their vacation plans, users still intend to get away this summer.
And even though travelers want more bang for their buck, as Trevino suggests, the good news is that they can find it–even with the dollar depreciating in value by 7.5% in the past six months. That’s because several high-end destinations still have a weak currency compared with the dollar.
Air Travel Industry Under Oil Price Siege
Air travel in the USA has grown at a rate five times faster than the population since 1978, when deregulation first allowed airlines to compete by setting their own prices and routes without government approval. Last year, 769 million passengers boarded U.S. airline flights.
But with today’s unprecedented jet fuel prices, airline executives and aviation analysts are warning that only extreme fare increases and dramatic cutbacks in flights will enable the industry to cover a 2008 jet fuel bill the airlines’ trade group projects will be 44% higher than last year’s.
By this time next year, there could be as many as 20% fewer seats available if carriers respond to oil prices well above $100 a barrel by cutting as many flights as securities analysts such as JPMorgan’s Jamie Baker are suggesting.
GAS PRICES RISING! WHY?!? PEAK OIL???
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