Travel

KC experts say higher gas prices could affect summer travel

KANSAS CITY, Missouri. If you’re planning to take a trip or even spend a day at the lake, gas prices will affect your summer travel as experts say we can expect those costs to continue to rise.

“This is an all-time high right now and will continue to rise through the summer,” said Larry Wigger, a supply chain economist at the University of Missouri Kansas City.

Wigger explained some of the factors driving gas prices up.

“Ahead of Memorial Day, anticipating increased consumer demand, people traveling on vacation, etc.,” Wigger said. “Next, oil companies and retail gas companies evaluate additional consumer demand. Since we had raised prices a lot because the cost had gone up due to the cut in oil supplies from Europe, you know, there was nothing else to do.”

Wigger explains that while gas prices did not rise sharply over the holiday weekend, they will.

“With prices rising, which they have, we are in record territory and we should expect these costs to be passed on to us,” Wigger said.

Wigger also weighed the impact people’s travel plans could have on inflation and rising gas prices.

“We have to assume that unless consumers really decide it’s too expensive and start canceling vacation plans, we should expect summer travel to contribute to continued inflation and fuel,” he said.

However, Wigger says those fuel costs could come down if travelers choose to stay at home.

“Once consumers decide it’s too expensive and just start canceling their travel plans, this will reduce demand and therefore further price increases could freeze or slow down,” he said.

Wigger added that he understands that travelers are likely to go through with their plans despite rising fuel prices.

“How likely do you think it is that someone will cancel their vacation plans and decide to stay at home because the fuel in the car is getting too expensive? Or is it due to the fact that a fuel emission charge is indicated on the plane ticket? Wigger said. “I think the smart move now is for people to follow the plans they have and keep consumer demand going up. price increase”.

Finally, Wigger says consumers may see other indirect costs rise as airlines and banks work to keep up with demand.

“The Feds are changing interest rates and that will start to have an impact,” Wigger said. buying a plane ticket on your credit card.

When this happens, businesses will also incur more costs and may also raise their prices.

“They will make business decisions more expensive. A business that needs to borrow money when they need to provide goods and services, whether it be selling gasoline, plane tickets, or whatever, will cost them more…

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