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368 total votes
Kind of a silly question. Let's say gas goes up $1 a gallon to $4.35 and you are looking at a 2000 mile trip in a car that gets 20 miles per gallon. The difference is $100. Is anyone going to change plans over $100? Or would they just save a little on meals etc if they had to? This gas thing is overblown.
As the average joe travels 15000 miles/year in their vehicle. Over the past several years, the average joe is paying about $1,000/year more for one vehicle. If gas hits your $4.35/gallon, the average joe will be paying close to $3,000 more a year for gas.
That is simply for their cars, as food has doubled causing most to cut back on what they buy and are still paying more. So I think that you are not that in touch with reality.
Perception is reality in business. If you're spending $1 more / gallon driving for things you have to do, the budget for things you want to do may be exceeded.
Over spring break last week there were a lot more people in town than I have seen in previous years. These were locals who just decided not to spend the cash on a trip at this time. Financial uncertainty about the future causes consumer confidence to take a nose dive. You can bet people will be staying closer to home not just because of the price of gas. Vacations are a luxury not a necessity. I think we can plan on a quieter summer and winter season.
ybul, if the average consumer drives 15K miles and gets 20 miles per gallon that comes to about 750 gallons which would be an annual increase of $750 not $3000. I guess you were figuring they drive that much in three different vehicles and get 15 miles per gallon.
I was responding to the question which was whether we think consumers will change vacation plans based on gas prices. I don't think they will as the difference is only $100 bucks or so. All else being equal, if the price of the vacation rises by $100 bucks I think most people still go. If they need to save the $100 on other stuff, they do, but they don't cancel the trip.
Your point about over-all household expenses is a good one and many people may well change plans as a result. Gas prices are certainly a part of that. I did not interperet the question that way.
As far as being out of touch with reality... well, sorry about the mileage you get in your truck(s).
Sorry I did not pull out my slide rule when guestimating. The point was simply as you stated above, that the problem does not arise from the additional fuel charge from the trip, it is the cumulative additions to the annual budget in increased "need" items.
My car gets 42 MPG and yes my trucks, do only get teen mileage, but I need to for work, and only drive them when necessary (and choose based upon the job as they serve different functions).
Those who live and work in town, can ride the bus, will not see the same effects, as those who choose to live further away, as a result of the cost of living. The issue though relates to the whole of tourism and how it will effect the local economy.
quit your whining america. Gas has been $6.00 a gallon in Europe for years.
I also owe an apology for stating you are not in touch with reality. I have allowed the computer to dehumanize the conversation.
Thanks ybul. I envy the 42 miles. We max out at about 25. I think most of our gas is burned getting to and from kids sports after school. We just got back from about 1500 miles of spring break driving. We broke the budget, but it was not on the gas.
It is not just the price of gas. It seems everything in my life is effected by the price of fuel. Everything we buy is brought here by trucks that only get about 3-5 mpg. When diesel is over $4 a gallon, those costs go up. My husband and I are retired and on a set income. We live very well, but travel a lot during the summer. If fuel prices keep going up, the 5th wheel is either going to stay home or do a lot of dry camping. That means campgrounds are going to get less of my $. It means I will be doing more cooking at home and less eating out. That means restaurants will be getting fewer of my $. It just goes on and on.
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