Rising gas prices cut into family vacations

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buy this photo Associated Press<br> Rising gas prices across the country in response to record-high oil prices are causing many families to alter their summer travel plans. Some are opting to drive short distances to save cash, rather than fly to further destinations. Others are choosing to visit family to save on hotel costs.

DECATUR - With the recent Memorial Day holiday unofficially kicking off summer travel season, some local businesses are wondering how soaring gas prices may be cutting into their profits this year.

Gas prices hovering at about $4 per gallon and the slumping economy contributed to what AAA projected to be the least traveled Memorial Day holiday since 2002, just after the 9/11 terror attacks.

"We know that it's really going to have an effect to the economy and particularly businesses that just rely on leisure travelers for a great portion of their revenue," said Beth Mosher, a spokeswoman for the AAA Chicago Motor Club.

Mosher said even though the number of travelers this summer should remain significant, some people are revising those plans to save money by driving instead of flying when they would have in the past or by taking shorter trips.

"They're traveling closer to home, and they're also electing to see family and friends, so they can cut back on some of the expenses like staying in a hotel, for instance," Mosher said.

Bill Fleischli, executive vice president of the Illinois Petroleum Marketers Association, said even as drivers pay more for each gallon at the pump, gas stations also face bigger expenses in higher wholesale gasoline costs and credit-card processing fees, while customers spend less money on snacks, drinks and other "inside sales."

"Sometimes, the spendable income has been reduced because of the high prices at the pump," Fleischli said.

He said gas stations already have seen a slight reduction in demand for gasoline in the first quarter of the year, between 0.5 percent and 1.5 percent, but it is too early to say whether that will continue in summer travel season.

It's also entirely uncertain just how high gas prices will go this year.

Fleischli said he couldn't make a prediction because he lacked a "crystal ball."

Decatur tourism officials say they hope the higher gas prices might result in more statewide organizations considering the city as the site for meetings or conventions due to its centralized location.

"I think that we're positioned perfectly for meetings and sporting events," said Denene Wilmeth, executive director of the Decatur Convention and Visitors Bureau.

Wilmeth said she recently attended a meeting with Illinois tourism officials, where they discussed concerns about how higher gas prices might affect the tourism industry but noted the potential for attracting people in-state or from neighboring states looking for short-distance getaways.

"Maybe people won't be getting on a plane or won't be driving clear to the coast," Wilmeth said. "They may seek some of the treasures that Illinois has."

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