How high gas prices amid Iran war affect the tourism industry, according to this New Jersey professor
The high gas prices and travel uncertainty amid the United States and Israel's war with Iran are on the minds of many travelers as they try to book their vacations locally and overseas.
If you have a vacation planned in the near future, rising oil prices are making it a tad harder to travel — for now.
The war with Iran is causing the price of crude oil to jump, and in return creating a domino effect on gasoline, diesel and jet fuel.
Dr. Brian Tyrrell, a professor of hospitality, tourism and event management at Stockton University in Galloway Township, New Jersey, said fuel prices do in fact impact the tourism industry because transportation is a part of it. He anticipates shorter duration trips.
"We have been in an inflationary environment for a few years now, so those budgets are already squeezed and now transportation costs are rising," Tyrrell said.
If you plan to travel in the future, experts suggest making cuts to accommodations and entertainment to make up for the higher transportation costs, whether you are driving or flying.
"You will also see an impact in the percentage of a travel budget that is spent on other things like shopping, entertainment and lodging itself because a larger percentage of what they set aside for a trip is now being spent on transportation," Tyrrell said.
Brian Wilkinson, the owner and vacation specialist from Dream Vacations, said he's seeing a different side to it.
"So I am seeing a lot less demand, but it's really dead, right? Because people are concerned, they do not want to travel," Wilkinson said. "The challenge is most travel insurance excludes war and political unrest."
Wilkinson said his phones have been slow and similar to the uncharted waters the pandemic brought.
"I have not gotten demand for people wanting to purchase their tickets sooner because of the gas prices, I have not. Me personally, I did do that. I purchased two trips because I was fearful it would go up potentially," Wilkinson said. "Now on the flip side, maybe that's why the phones aren't ringing because gas prices are hitting people in the pocket here because we're already seeing it, so they're having to withhold their travel."
