Higher gasoline prices could stem travel plans
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Higher gasoline prices could stem travel plans

www.reuters.com   | 27.03.2012.

(Reuters) - Rising gasoline prices in the United States could lead business and leisure travelers to cut back on travel plans, which in turn could have implications for airlines, hotels and retailers, a survey found.
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A survey of some 2,500 people by the U.S. Travel Association earlier this month found that higher gas prices would affect the summer travel plans of 54 percent of vacationers who planned to go by car. Among business people, 26.8 percent said rising fuel prices would alter their summer travels.

Oil prices remain above $100 a barrel. U.S. crude rose 49 cents to $107.52 a barrel on Tuesday, while Brent crude gained 32 cents to $125.97.

The poll also found that higher airfares resulting from rising oil prices would affect 43 percent of leisure travelers and 25 percent of business travelers who planned to fly during the summer.

On Monday, Southwest Airlines (LUV.N) initiated a fare increase of as much as $5 one way that was later matched by many other carriers, including Delta Air Lines (DAL.N) and United Continental (UAL.N), according to FareCompare.com. Southwest warned earlier this month that it did not expect to post a profit for the first quarter because of rising fuel prices.

In the survey, about 44 percent of vacationers traveling by auto said higher gasoline prices would lead them to take fewer trips and spend less money shopping, and 37.4 percent said they would curtail spending at restaurants.

For business travelers using a car, 27.7 percent indicated more expensive gasoline would prompt them to spend less at restaurants, while 22.3 percent would cut spending on hotels and motels.

The survey also showed that rising gasoline and oil prices would influence voting in this year's presidential election for 43 percent of travelers who said they would be affected by the higher costs.

(Reporting by Karen Jacobs; Editing by Maureen Bavdek)



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