Nov
14
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Cindy Hughes asked:
Rising fuel costs are forcing more American families to choose a staycation over the typical vacation. As Memorial Day, the unofficial start of summer nears fuel costs are on the rise again. It wasn’t too long ago that the very thought of the summer season sent chills through consumers’ spines as worries about rising gasoline prices at the pump ruined vacation plans. This year families have an alternative to the typical vacation, we refer to it as a staycation. A staycation is when you take time off work but you stay home, with your family, friends, kids, dog, neighbors, etc.
“American consumers have enjoyed a long stretch of very stable gasoline prices prior to the start of May,” said Geoff Sundstrom, a spokesman for motorist group AAA. It’s no wonder. The average retail price for regular gasoline has dropped 40% from a year ago and supplies are “comfortable” at about 6 million barrels above the five-year average, said James Williams, an economist at WTRG Economics.
“The ability of OPEC to cut production quotas aggressively, coupled with increased Middle East political turmoil in oil-producing countries such as Iran, Iraq and even (Saudi Arabia), could result in price spikes at the pump,” said Mark T. Williams, a risk management expert and finance professor at Boston University. “Historically, fuel prices have tended to rise during the summer” with consumption generally increasing, since people usually drive more in better weather when they take vacations, said Sean Comey, a spokesman for Chevron CVX, news,msgs).
The U.S. Energy Information Administration predicts a summer retail average price of $2.21 per gallon for regular gasoline, while AAA predicts prices will average less than $2.50 per gallon for the summer. Sam Subramanian, the editor of AlphaProfit Sector Investors’ newsletter, pointed out that prices have already climbed significantly this year. They’re up more than 40% from the end of last year and up nearly 11% in May alone, according to OPIS data.
The soaring price of fuel is causing some Americans to consider changing their typical vacation plans to the newly termed staycation instead. “This summer, high gasoline prices appear to be dampening Americans’ intent to travel,” said Robert Sinclair Jr., a spokesman for the AAA in New York. “Americans are used to tough economic times and challenging environments in which to travel. They’ve become ever-increasingly resilient,” Hoyt said. “Americans will continue to travel; they’re just going to change the way they travel.
“A staycation is a great alternative to the typical vacation. It allows you to spend quality time with your family while getting some much needed rest and relaxation.” Says Cindy Hughes, owner of Travel At A Discount. The fact that you can now enjoy time off with family and friends while not putting a big hole in your bank account is an added bonus and will leave you guilt free when you return to work.
JAMIE
Rising fuel costs are forcing more American families to choose a staycation over the typical vacation. As Memorial Day, the unofficial start of summer nears fuel costs are on the rise again. It wasn’t too long ago that the very thought of the summer season sent chills through consumers’ spines as worries about rising gasoline prices at the pump ruined vacation plans. This year families have an alternative to the typical vacation, we refer to it as a staycation. A staycation is when you take time off work but you stay home, with your family, friends, kids, dog, neighbors, etc.
“American consumers have enjoyed a long stretch of very stable gasoline prices prior to the start of May,” said Geoff Sundstrom, a spokesman for motorist group AAA. It’s no wonder. The average retail price for regular gasoline has dropped 40% from a year ago and supplies are “comfortable” at about 6 million barrels above the five-year average, said James Williams, an economist at WTRG Economics.
“The ability of OPEC to cut production quotas aggressively, coupled with increased Middle East political turmoil in oil-producing countries such as Iran, Iraq and even (Saudi Arabia), could result in price spikes at the pump,” said Mark T. Williams, a risk management expert and finance professor at Boston University. “Historically, fuel prices have tended to rise during the summer” with consumption generally increasing, since people usually drive more in better weather when they take vacations, said Sean Comey, a spokesman for Chevron CVX, news,msgs).
The U.S. Energy Information Administration predicts a summer retail average price of $2.21 per gallon for regular gasoline, while AAA predicts prices will average less than $2.50 per gallon for the summer. Sam Subramanian, the editor of AlphaProfit Sector Investors’ newsletter, pointed out that prices have already climbed significantly this year. They’re up more than 40% from the end of last year and up nearly 11% in May alone, according to OPIS data.
The soaring price of fuel is causing some Americans to consider changing their typical vacation plans to the newly termed staycation instead. “This summer, high gasoline prices appear to be dampening Americans’ intent to travel,” said Robert Sinclair Jr., a spokesman for the AAA in New York. “Americans are used to tough economic times and challenging environments in which to travel. They’ve become ever-increasingly resilient,” Hoyt said. “Americans will continue to travel; they’re just going to change the way they travel.
“A staycation is a great alternative to the typical vacation. It allows you to spend quality time with your family while getting some much needed rest and relaxation.” Says Cindy Hughes, owner of Travel At A Discount. The fact that you can now enjoy time off with family and friends while not putting a big hole in your bank account is an added bonus and will leave you guilt free when you return to work.
JAMIE