How Hospitality Industry is Affected by Rising Gas Prices

Fuel prices have been devastating to households around the world over the last year or so, and while we’ve all certainly felt the pinch, it’s not just homeowners affected. A recent study found that travelers are planning fewer trips out because of these rising gas prices, which are predicted to hit the hospitality industry hard.

The study, which Longwoods conducted, found a massive 44% of American travelers are reducing the trips they’re taking because of the ever-rising cost of gasoline. This trend is replicated across the globe, as people are more aware of how much their travel costs them.

In fact, with the same study revealing that only 12% of those surveyed would not let rising prices affect their travel plans, it’s never been more important for hospitality businesses to be aware of the issues they could face.

Another Blow to Hospitality

The situation we find ourselves in presents a real problem for the hospitality industry.

In an industry so reliant on travelers to keep its doors open, with fewer people taking trips, fewer bookings are made at hotels, restaurants, and cafes.

We’re already seeing the knock-on effect on the industry, with some businesses forced to close their doors for good.

What’s more, these issues are coming off what is now three years of COVID-19 affecting the world, a time when many businesses were already struggling to keep their heads above water.

With travelers now hit by gas prices, it’s a one-two punch that a large portion of the hospitality industry may be unable to recover from.

While it’s not really possible to see just how many businesses closed, UK Hospitality estimates that the UK hospitality industry alone saw a loss of over £115 billion, and that’s just one country.

It’s not all doom and gloom

While it can feel like a scary time, it doesn’t have to be this way.

Since COVID-19, popularity in staycations, especially in the glamping industry, has soared as travelers are looking for vacation experiences closer to home.

Moreover, businesses have had to get creative to mitigate the impact of rising gas prices. By being more strategic in marketing efforts, targeting local customers, and offering discounts and special offers to encourage bookings, there are certainly ways around the issues that seem to continuously bombard the industry.

And that’s just it.

Businesses that stay stuck in their ways will suffer because modern problems need modern solutions.