Inflation Vacation: Gas Prices, Rising Costs Push Families to Alter Travel Plans

Leisure travel is returning to pre-pandemic levels.

But gas prices are getting so high, that it's putting a strain on the family budgets of those who want to travel this summer. It’s pushing $5 per gallon in parts of North Texas and beyond.

That, coupled with the highest inflation increases seen in 40 years, is changing the way people are traveling right now.

The idea of a ‘staycation’ is becoming more appealing to families.

"With gas prices surging, we’re seeing that the last two months of our business has been the transient section – around 75% are from drive-ins or locals who are deciding to do a ‘stay and play’ staycation instead of getting on an airplane and jumping out to San Diego or Miami,” said Crystal Kennedy, Area Director of Sales at The Statler Dallas, Curio Collection by Hilton.

Many visitors are driving in from cities that don't break the bank on the gas tank.

"Our big feeder markets are Austin, Houston, San Antonio," Kennedy said. "Shreveport is really sneaking in there. We get a lot from Waco, which is a quick 90-minute car ride."

They've also noticed more vacationers making decisions just days before traveling, so last-minute bookings are common.

Hotels are now catering to these specific visitors. For example, The Statler is offering special discounts for Texas residents and new perks like free valet for those with cars, which helps accommodate everyone driving into downtown Dallas.

If you're doing a staycation or traveling in other parts of Texas, those perks are something you should ask your hotel about.

Mitch Whitten, COO of Visit Fort Worth, said they are seeing the same trends.

"Nationally, 86% of Americans plan to travel this year. About 60% plan to take road trips closer to home," Whitten said. "More Texas travelers are finding their way to Fort Worth. Visit Fort Worth has tracked big jumps in visitors from cities as far as El Paso and Corpus Christi, and closer in like Waco and Weatherford."

They're also seeing a trend in new locals who recently moved to DFW playing tourist in their new city.

"Fort Worth is wildly popular with the 7 million people who live in the DFW region, many of them new Texans or new to the region," Whitten said.

That's why staycations are becoming more popular. Visit Fort Worth has crafted itineraries for families who want to follow an easy guide on things to do in Fort Worth, including free experiences.

Meanwhile, Visit Dallas said despite high gas prices travel is coming back in every way it can.

Surveys show people are spending less on other things like clothes and retail so that they can travel this summer.

"There's a phenomenon now that is called revenge travel. People have been so pent up over the past two years, that they are going to go," said Craig Davis, president and CEO of Visit Dallas. "A recent study said that over 65% of the people that they surveyed said that they're going to take a trip in the next six months no matter what."

The resurgence in tourism is so desperately welcomed by the industry.

"We had an awful couple years. In fact, the effect that COVID had on the travel industry was nine times the combination of 9/11 and the 2008 recession put together. So we really hit rock bottom, and now are shooting back,” said Davis.

Davis said the city just passed the $100 million level on hotel revenue for the first time ever back in March.

Even though we might be seeing more visitors from closer by, prepare to see more people from around the world soon.

Visit Dallas said because the government dropped the COVID-19 testing mandate to enter the country, it could bring a surge of international travelers flying into DFW Airport.

"In fact, the US Travel Association says that it will bring in another 5.4 million travelers and $9 billion worth of revenue into the United States," Davis said. "And Dallas, of course as an international gateway, will stand to have more than our fair share of that impact."

Future of Airfare

If you're still holding onto hope of saving a few bucks for a plane ticket this year, experts say cheap flights aren't gone forever.

Scott's Cheap Flights tells CNBC you're out of luck for this summer but fares after Labor Day are still affordable.

“You want to make sure you don’t put it off until the very last minute in the hopes that fares are gonna get cheaper because, in all likelihood, the opposite is going to happen,” site founder Scott Keyes said.

Prices for both hotels and flights also tend to drop once the kids go back to school and demand slides back.

One trick in booking flights is to flip the vacation planning upside down. People typically pick a destination first, then the dates, and then search for the airfare.

“By setting price as the last priority, it’s not terribly surprising that we have some pretty expensive flights," Keyes told CNBC, adding that prospective travelers should take that same three-step process and “flip it on its head."

“If cheap flights are really important to you and this is a vacation where you have the flexibility about where and when to go, don’t make price the last priority,” Keyes said.

Instead, make price the top priority. He recommends periodically checking prices from your local airport to see which destinations are the most affordable, keeping in mind that fares can change by the day.