Inflation threatens summer vacation plans for millions of Americans

Inflation threatens summer vacation plans for millions of Americans

Rising inflation threatens travel plans for millions of Americans, as growing demand for travel and vacations drives prices higher.

On Saturday, gasoline reached the new record high of $ 4.45 and the peak season for the start of summer is still several weeks away.

Earlier this week, federal inflation data showed air fares were up 33 percent from a year earlier, jumping 18.6 percent from March to April alone, the fastest rise since they began the records in 1963.

Analysts at travel comparison company Hopper estimate that domestic return flights are now averaging $ 330, up from $ 235 in early 2022.

Inflation threatens summer vacation plans for millions of Americans

On Saturday, gasoline reached the new record high of $ 4.45 and the peak summer season is still several weeks away.

Hopper predicts that prices will rise by at least 10 percent to $ 360 by the end of May and will remain so until June.

And prices for summer camps for children will rise by 10% to 15% from a year ago, amid strong demand, said Tom Rosenberg, president and CEO of the American Camp Association.

“Demand is extremely strong for camping, as parents desperately want their children to be out in nature with their peers and away from technological devices after two years of social distance,” he told CNN Business.

However, rising costs do not deter summer vacations, and about 85% of Americans expect to travel this summer, according to the American Travel Association.

Expedia CEO Peter Kern told Bloomberg that he expects the summer of 2022 “to be the busiest travel season ever.”

Airlines, hotels, car rental companies and booking sites have reported an increase in demand for their services in the company’s latest batch of profits.

But at the same time. Many of these companies are facing a narrow labor market and limited volume as they try to restart and expand their operations after more than two years of declining demand due to the pandemic.

Earlier this week, federal inflation data showed air fares were up 33 percent from last year, jumping 18.6 percent from March to April alone.

Earlier this week, federal inflation data showed air fares were up 33 percent from last year, jumping 18.6 percent from March to April alone.

Prices for summer camps for children will increase from 10% to 15% compared to a year ago, amid strong demand, predicts an industry group

Prices for summer camps for children will increase from 10% to 15% compared to a year ago, amid strong demand, predicts an industry group

A customer pumps gas at an Exxon gas station Tuesday, May 10, 2022 in Miami

A customer pumps gas at an Exxon gas station Tuesday, May 10, 2022 in Miami

Tripadvisor said travelers should expect inflation to affect all areas of the travel market in 2022, and booking now for later could mean locking in better prices.

Hilton Worldwide Holdings Inc. plans to continue to revalue hotel rooms “every minute of the day” to reduce the impact of inflation on its operations, Christopher Nassetta, chief executive, told investors on Tuesday.

“As demand has increased, we have certainly been able to do this and we expect to continue to do so,” he said in the company’s profit call.

Hilton’s average daily values ​​in the United States were 36.4% higher in the first quarter of 2022 compared to the same period in 2021.

Average daily rates among hotel companies in the US increased by about 37.7% in the first quarter of 2022 compared to the same period in 2021, according to hotel market data provider STR.

Flight prices are also moving higher this summer, according to travel search engine Skyscanner.

Return flights within the US will cost $ 302 per traveler on average, which is 3 percent higher in the same period before the pandemic.

International long-haul and very long-haul flights are up to 20% higher than in 2019, costing an average of $ 797 and $ 1182, respectively.

Other parts of the travel industry face supply constraints and labor shortages as leisure travelers and professionals also return.

Tripadvisor said travelers should expect inflation to affect all areas of the travel market in 2022 and booking now for later could mean locking in better prices

Tripadvisor said travelers should expect inflation to affect all areas of the travel market in 2022 and booking now for later could mean locking in better prices

Car rental company Hertz Global Holdings said it had an average of about 481,000 vehicles in the first quarter of 2022 compared to the pre-pandemic level of about 700,000 vehicles.

“There is no doubt that as demand grows even more during the summer, you will see further stress,” said Hertz CEO Stephen Scherr, adding that the supply of vehicles available is limited and needs very careful management.

Staff problems have also tarnished operations in recent weeks at airlines such as Alaska Airlines and JetBlue, forcing them to cut summer flights to avoid further disruption.

Hopper travel booking application said domestic airlines are currently scheduled to operate between 75 per cent and 95 per cent of their 2019 summer capacity from May to August.

The Transportation Safety Administration (TSA) continues to host recruitment events in an effort to increase staff in anticipation of expected summer travel and return to pre-pandemic passenger volume, according to the agency.

The TSA said in March that the return of passenger traffic levels (fiscal year) 2019 will return to (fiscal year) 2022, a year earlier than previously planned, and the increase in staff will help ensure that “the traveling public he will not face excessive waiting times. ‘

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