Rising Oil Prices Not Good News for that Summer Vacation

Turmoil in the Middle East will likely result in more expensive summer vacations. The price of crude oil has risen swiftly in the wake of all the uprisings. Airlines have answered the bell by raising airfares to offset the increase in prices for jet fuel. Travelers are faced with higher ticket costs, in addition to the higher fees already announced for baggage and several other in-flight services. Plus, vacationers looking to avoid those fees and drive to their destinations will find themselves shelling out more at the gas pumps. While getting there may be half the fun, it will eat up a larger portion of the overall vacation budget than expected, especially if oil prices continue to rise.

Airlines have raised domestic ticket prices five times since the start of the year in an effort to offset rising fuel costs. While the hikes have been in the modest $4 to $10 range, the number of them has added $25 to $60 to round trip tickets for a number of popular destinations. To put the frequency of the price hikes in perspective, fares were increased four times in 2010 and three times in 2009. 2011 is young yet, and travelers will likely be faced with several more increases before all is said and done.

While business travelers may get away with purchasing one of those tickets, families booking four or five tickets, and usually traveling with more luggage, will feel the hikes in a much more pronounced way. With just the current per ticket hikes a family of four would be faced with paying $100 to $240 more for round trip tickets to their destination, without adding in baggage fees. These added costs will likely impact summer travel plans for vacationers who were just starting to feel the effects of the economic recovery.

The bad news is that more or continued unrest that the key oil supplying region of the Middle East will only trigger higher prices for oil, which will result in higher travel prices by air and ground. The sudden increase in oil prices has prompted a few lawmakers to call on President Obama to release oil from the strategic reserves in an effort to keep prices in check. Still, whether or not the president takes action, there can be little doubt the summer driving and summer travel season will be a little tougher for anyone planning on escaping for a week or so.