How many years has it been since tourist locations and entertainment venues had clear skies and relatively predictable futures? It might as well be ancient history. The pandemic instability and catastrophic lockdowns for tourism are morphing now with the threat that Russia may begin a war against Ukraine, invading the country, overtaking the capitol Kiev, and then likely causing as a result the spike of the price of oil worldwide. For a tourism industry already facing major troubles from inflation not seen since the 1970s, the idea of oil barrels spiking above a $100 price point could be devastating. That could point towards a near future where a gallon of gas in the United States is above five dollars per gallon.
Oil prices haven’t topped $100 per barrel since 2014. At the time, the average price per gallon hit a high of $3.70. That’s the equivalent of $4.29 per gallon today. (Note that national averages don’t reflect the price in several big states. California is already looking at prices of $4.70 per gallon—and a surge could put those well over $5.)
Chris Morris, Fortune
Now we’re not here to tell you that the price of gas for tourism is on par with the level of concern with loss of human life or a nation conquering an unwanting democracy. But we cover entertainment and tourism here on this website. Though the situation with Ukraine is severe, and one can expect to see tens of thousands of deaths, there will be less grave consequences that ripple throughout the globe. The cost of energy is one of those issues that will effect economies internationally, including the United States.
BREAKING: Pentagon says Russia has ‘added’ forces to the Ukraine border and is doing ‘all the things you would expect him to do’ to invade. Russia could invade with ‘little to no warning’
— Lucas Tomlinson (@LucasFoxNews) February 14, 2022
So what will be the results of gas climbing near or above 2014 records? Well, you can look at articles from the past like the San Diego Union-Tribune to get an idea. We’ve seen spikes before, and even when those spikes have not been record-breaking, one of the first hits comes to hospitality industries like hotels and vacation destination restaurants. It is possible that Americans will look to camping opportunities, “staycations”, and trips to smaller, regional locations near their homes. As goes the price of gas so will go the price of many services and products within the tourism industry, although there may be a lag in timing. This is likely to exacerbate the inflationary issues with travel and tourism.
The entire nation is witnessing inflation — and hotels are no different.
Hotels reported a 79% cost increase on day-to-day cleaning and housekeeping supplies, a 77% increase for linens and other soft goods, and a 77% increase in food and beverage supplies, according to a November 2021 survey of about 500 hotel operators conducted by the American Hotel & Lodging Association.
While an increase in gas prices will bump up the costs for hotels across the board, it’s hard to see how lodging fees can continue to rise before potential consumers just stay home. And when it costs those same consumers more just to drive or fly to the hotels, it may be a bleak spring and summer for the tourism industry of America.
For more on tourism, lodging, and all things that are usually fun, keep checking out That Park Place.
