Rising Oil Prices Spike Travel Costs

With the rising trend in crude oil prices, travelers are likely to see an increase in airfares and gasoline prices this summer. 

According to the annual Bing Travel forecast for the 2010 summer travel season, domestic airfares are poised to jump by as much as 22 percent and flights to Europe could jump by 29 percent.

Domestic flights would average $303 per ticket and flights to Europe would average $1,271 per ticket, according to the report.

These prices are up from the 2009 and 2008 summer traveling seasons.

Domestic flights are gradually becoming more costly as the price of crude oil goes up. Increased airfares to Europe come from attempts to offset the losses incurred from the volcanic eruption as well as increasing oil prices.

According to the U.S. Energy Information Administration, the world oil consumption will grow by 1.6 million barrels a day in 2010. Burgeoning economies in countries such as India and China fuel the increase in consumption, according to the EIA.

Additionally, the global economic recovery will cause more oil consumption because greater numbers of people will be traveling and spending money.

Crude oil averaged $84 per barrel in April, about $3 per barrel above the prior month’s average, indicating the gradual incline.

EIA forecasts that regular-grade motor gasoline retail prices will average $2.94 per gallon during the summer, up from $2.44 per gallon last summer.