Russia’s invasion of Ukraine may have upset the travel industry, but soaring fuel prices have kept it. US gas prices this week exceeded $ 4 per gallon. Airfare is also rising. So how do energy prices affect your next vacation?

A new study by research firm Longwoods International suggests that fuel pumps are expensive. Make people rethink vacation.. About 6 out of 10 travelers say that rising gas prices will affect travel plans for the next six months. (In contrast, only two in ten travelers say that Covid-19 will influence travel decisions for the next six months, a decrease of more than 10 points since the beginning of the year.)

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Amir Eylon, CEO of Longwoods International, said, “The travel recovery we all wanted this year faces new challenges. Consumers are the last after two years of pandemic quarantine and restrictions. All we need is this oil price shock. “

that is true. But for now, travelers are asking a lot of questions about rising energy prices and how they will affect their next vacation. Chief of them: “How bad is it really?” (Spoiler note: it’s pretty bad.) What are the consequences for airfare, gas prices, and ultimately your vacation plans? They are probably not what you expect. But we get to it in just a few minutes.

What you need to know about energy prices and travel

Here are the most frequently asked questions about energy prices and how they affect your next vacation.

How much is the gas price?

According to them, they are the best ever US Energy Information Administration.. The average retail price of gasoline in the United States is $ 4.19 per gallon.

How high will the gas price in 2022 be?

Probably much higher. The consensus among experts is that prices can exceed $ 5 per gallon and stay there for months. It’s not all Russia’s fault. Energy prices were on the rise as Covid began to decline. But Russia’s military action exacerbated the bad situation.

Which country has the highest gas prices in the world?

According to Hong Kong, it has the highest fuel prices in the world On average, drivers pay $ 10.71 per gallon. Next are Norway, Denmark and Liechtenstein. Worst? Venezuela (95 cents per gallon), Libya, Iran.

When will gas prices go down?

it’s complicated. Prices could fall if the United States reaches an oil import agreement with Venezuela, or if OPEC increases production. If demand declines (which happens when there is another Covid outbreak), it can also lower prices. And, of course, if Russia withdraws its troops from Ukraine and oil exports resume, these could lower energy prices.

How about the airfare?

Ticket prices are also a bit more complicated. Ticket prices will rise, whether fuel prices are low or high, as they are determined by consumer demand. The airline also hedges the purchase of fuel. That is, buy fuel in advance to protect yourself from sudden price hikes. And, as you can see, jet fuel has not yet reached the record highs set in 2008.

What Higher Energy Prices Can Do For Your Next Vacation

You probably don’t think about energy until the problem faces you with a petrol pump or your vacation rental. But the current energy crisis will almost certainly affect your next trip.

Airfare will probably go up for your next vacation

Prices are already on the rise and airfares are expected to rise 7% this month. Experts predict that ticket prices will be even higher, but there is uncertainty as to whether that will happen sooner or later. Energy prices are putting pressure on airlines to raise fares, but demand is also weakening in some markets. (Even if energy prices go down, airlines don’t necessarily lower fares.)

You may take a vacation in the country this summer — if you go

According to the report, the number of searches for round-trip flights from the United States to Europe is on average 9% below expectations. hopper.. According to app researchers, this effect is not seasonal and is not seen on flights to other regions or in the US domestic market. This means that even if they go somewhere, more Americans are planning to stay close to their homes this spring and summer.

If you drive on your next vacation, you are near the “turning point”

AAA calls $ 4 gas A “turning point” for American drivers.. They are more likely to rethink travel plans and carpools. However, according to AAA, many Americans may adapt their daily habits to compensate for rising gas prices, but they will not have much of an impact on summer travel. A recent survey found that 52% of Americans plan to take vacation this summer. Forty-two percent said they would not consider changing their travel plans, regardless of gas prices.

Brace for higher energy cost spillover

Perhaps the greatest effect for travelers can be felt in the way you don’t expect the most. The higher the fuel price, the higher the transportation cost. This can increase the cost of your next hotel stay or restaurant meal. Over time, the cost of travel (business or entertainment) can rise even faster than inflation. reason? Travel depends more on energy than most people think. In fact, the two major sectors of aviation and food and beverage are Survey by Financial Services Group ING..

Ripples can turn into a tsunami for your next vacation

Like many travelers, I didn’t think about energy until I checked in Vrbo rental Recently in Cape Town, South Africa.

In the middle of the week, the apartment and everyone else in the building turned off. And it was out for more than two hours. After a few hours, it went down again. And the next day.

What’s wrong? According to news reports, South African power company Eskom has launched rolling blackouts (or “load limits”) to maintain diesel and water supplies in open-cycle gas turbines. Officials are paying close attention to the situation, saying Russia’s invasion of Ukraine could affect the availability of diesel fuel needed to keep the power grid up and running.

For now, Americans only have to fight higher prices with rising pumps and airfares. However, energy issues can extend to all aspects of your next trip, including hotel, restaurant meals, and tours.

The energy crisis even has the power to stop your next MMGY Travel Intelligence According to a survey, 62% of U.S. travelers are influencing their travel plans to Europe because they are so concerned that the war in Ukraine will spread to neighboring countries. It’s too early to know how rising energy prices affect travelers’ sentiment. But what they do is a safe bet.