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Online insights from Bill Tancer

Bill Tancer is the general manager of global research at Hitwise and a weekly columnist for Time Magazine.

For information on Bill's upcoming book "Click", visit the following booksellers: Amazon, Barnes and Noble, Borders, or BookSense.

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Gas Prices and the Summer Road Trip

May 27, 2008 12:40 PM

With Memorial Day behind us, I was thinking about the effect of rising gas prices on visits to roadside  motel Web sites, which can serve as an indicator for the health of the  summer travel season. According to the Energy Information  Administration, the mean U.S. retail gas price reached $3.79 per gallon  for the week ending May 19, 2008 -- an 18 percent, or $0.57 per gallon, increase over the same week in 2007.

With  such a dramatic increase in spending at the pump, it would be  reasonable to assume that plans for traditional road trips would be depressed. AAA released the results of a  survey last week that indicated that Americans are planning to drive less over Memorial Day weekend than they did the year  before. But a quick check of Internet  behavior indicates that the opposite may be true.

Motel_visits

This chart represents visits to the Web sites of the major roadside motels  (Choice Hotels, Best Western and Days Inn, to name a few). Despite the steep price  of gas, visits to motel Web sites are up 21 percent from the  same period last year. This could indicate a stronger  desire to pile in  the car this summer, or perhaps travelers'  greater need to search for bargain accommodations to  offset high costs at the pump. It is possible that increased interest in roadside  hotels is related to budgetary considerations.  However, visits to online mapping sites also show a healthy increase over the previous  year -- another indication that road travel for  Memorial Day may not be such bad news for summer  tourism.

In my upcoming book Click: What Millions of People Do Online and Why it Matters, I discuss how Internet data can often be our  first  insight  into consumer sentiment.  Examining visits to roadside  motel sites is a  great example of getting an early  gauge on the health  of the travel sector in light of changing economic conditions.

May 27, 2008 in economics | Permalink | User Comments (12)

User Comments

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What many people do on-line, is wishful thinking.

You might not ought to put a lot of stock in those numbers.

When the dollars get calculated, those visits often simply get canceled.

Posted by: Rick McDaniel | May 27, 2008 1:29:02 PM

I'm in doubt whether this article is true. Given the high prices, I would expect fewer people on the roads. That is unless someone else pays for your gas that is.

My parents needed me to come over to their home (70 miles away one-way) to help with some yard work. They paid me for my gas, so I went anyway over the holiday weekend.

Posted by: GWP | May 27, 2008 2:17:29 PM

My wife's commute home from work is normally a 20min trip. The friday evening before Memorial Day traditionally turns it into an hour long ordeal. Not this year, she got home at her usual time...coincidence?

Posted by: DP | May 27, 2008 4:13:17 PM

I was on the road this weekend -- it cost me $200 in gas alone for a 2-day trip. It was outrageous. I also believed the roads would be busy being Memorial weekend - opposite was true. I was surprised at how few cars were on the interstate. I've used my spare $$ on gas cutting into my grocery money for the week.

Posted by: c | May 27, 2008 4:30:21 PM

Two things:
1. Motels are booked during travel by the "more" affluent population that high gas prices do not have as much effect on. (did the author do any real research and check mean income of those checking in at motels or did he just sit at his desk)
2. With air travel being the mess that it is, do you wonder why people are driving more? And again, if you can afford to fly for a 3 day weekend, you most likely can afford a motel while driving.

Posted by: MG | May 27, 2008 5:38:16 PM

Analytic trend is probably correct. Also, the number of people using the internet to calculate costs, estimate savings between alternatives, and stay within a budget has certainly expanded along with the much greater fuel and transportation expenditures as a percentage of total spent - compared with even one year ago.

Posted by: fran | May 27, 2008 7:14:18 PM

I find it interesting that when the Arabs raise the price of their crude oil our American Oil Companies raise their price to match the Arabs? This on oil in the United States where they have been getting tax credits for years.

Now i know the Arabs could care less about our economy but how can Americans inflect such hardships on Americans. Five Oil Companies are distroying our economy yet the government does nothing about it? Can you imagine if the Arabs raised their price double? Today the oil companies can't hide the huge profits they are making. They say they only make ten cents a gallon - who for one second believes that? We have more oil here than all the Arab countries together - yet all you hear are lies

Posted by: a citizen | May 27, 2008 11:14:45 PM

Some things to think about: (1) We are not dependent on foriegn oil never have been. (2) Five oil companies are distroying the American way of life and the Government has decided to allow it. (3) The democrats have said nothing and it's an election year, one has to ask why not? (4) why do our oil companies sell oil 20% over seas if we don't have enough here? (5) We are looking for alternative fuel is the big laugh, we all ready have it, but we will not see it for 12 to 20 years. Solar - wind - corn are all jokes. (6) we are all being robbed in broad daylight by our own oil companies and the government.

Posted by: a citizen | May 27, 2008 11:29:12 PM

when is enough, enough? i know things aren't going to happen overnight, but why can't they? let's use our fine resources right here in the usa, and then worry about where it's going to come from later on. i feel by that time, we will have many alternatives as they are already being studied and put to the test. we need some relief!!!!!!!

Posted by: katie | May 28, 2008 8:05:38 AM

Just a tip I stumbled on yesterday. If you book a 3 day hotel stay through expedia, you can get a $50 gas card. check it out if you're planning on travelling. I had a reservation for the end of june - cancelled it and rebooked (at a lower price) - and saved $50!

Posted by: cturple | May 29, 2008 10:42:44 PM

I'm going to walk to vacation

Posted by: Daisy | Jun 10, 2008 12:03:10 PM

I have not really changed my summer plans but I have to work twice as hard to earn extra money to take vacation that I would normally without working overtime. These gas prices have been hitting us hard and making me think twice about driving somewhere, even to get food. But Jack in the Box has come up with a solution. You love those tacos from Jack in the Box, don’t deny it.—the crispy goodness with the melted cheese, hot sauce and crisp lettuce on the inside. With gas becoming more and more expensive, Jack wants to help you fill your stomach. Bring any gas receipt to Jack in the Box next Thursday, June 26th, and get TWO FREE TACOS. No gimmicks, no hidden fees, no purchase necessary—just two free tacos! Let all your friends know if they like taaaaacos

Posted by: Blair Landon | Jun 23, 2008 8:06:18 PM

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