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Video on Rise In Oil Prices

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Rise In Oil Prices
Bill Morgan
With the dramatic jumps in oil prices in recent months, many high-traffic tourist destinations around the world are experiencing a negative downturn in sales. More people are opting for a ?staycation? this year in hopes of saving money and reducing monthly expenses to their bare minimum. As consumers become increasingly frugal, the result is a lower rate of luxury spending. Hawaii is one destination that is taking the heat from the reduction in tourism, as nearly all of its economy is supported by its tourism industry.
The president and chief executive officer of Pleasant Holidays, LLC recently indicated that rising airline fees and increasing travel costs are turning people away from Hawaiian tours and packages. Pleasant Holidays, LLC is the largest wholesaler of Hawaii tours and has been monitoring trends and statistics in the travel industry to determine what exactly is causing people to turn away from Hawaii this year. Jack E. Richards, the president and CEO, explains that it the trend is definitely correlated to the oil prices and increasing costs of fuel. Because airlines are increasing their rates, they are passing the costs on to the customer ? fuel surcharges are accounting for much of the reduction in air travel, and this is taking its toll on the Hawaiian tourism industry.
Other industry officials and executives are concerned that more people will turn to other destinations in order to save money, and Hawaii will miss out on the usual booking window that has helped them survive through the seasons each year. Hawaii's visitor and tourist industry may have a chance of turning around with the help of the Hawaii Visitors and Convention Bureau that plans to spend nearly $4.5 million to market and promote the destination as an ideal spot for vacationers in the upcoming months. Still, the reduced level of visitors in the upcoming months is putting a lot of stress on the hotel, resort, travel and tourism businesses this year.
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