Economic troubles impact travel business

This summer is starting to look like a slow one for the travel industry.

Many travel agencies are reporting that people are cutting back or even cancelling their summer vacations. Families uncertain about their financial future are opting to stay at home, or to take short breaks closer to home.

Andy Boaz said that he and his family were looking forward to a trip to Las Vegas this summer, but that now it’s not going to happen.

“Everybody is having to spend their money on gasoline instead of trips and stuff like that because it’s so expensive,” commented Andy Boaz, who cancelled his family’s vacation plans.

Boaz is not alone in this. With the price of gas continuing to rise, and affecting household expenses such as groceries, many people seem worried.

Travel agents working at Brandywine Travel in Old Hickory, Tennessee, reported that business is down. Annette Cagle said that people are cancelling big summer vacations and settling for long weekend getaways.

“I had a group going to Russia and out of that only one couple is going and there were twelve people going,” she noted.

Airlines are disturbed by what they’re seeing as well. One industry trade organization has predicted that more than two million passengers will be lost this summer alone.

The price of airline tickets is rising along with the price of jet fuel.

“We can watch it practically increase in front of our eyes,” Cagle said.

The situation is made worse by the uncertainty people are experiencing, and concerns about how high prices will actually go and how this will affect their financial situation next year.