It’s called a “staycation,” and you may be stuck with one. You won’t be alone. According to AAA, 62 million people traveled by car (more than 50 miles from home) last 4th of July. The figures for Memorial Day and Labor Day were not as high, but they were close. A tank of gas could cost $50 more than last year, and a long trip would require more than a single tank.
Air travel can be worse; airlines are cutting routes, so some of the trips you want to take, you can’t take at all. Amin Nasser, CEO of Saudi Aramco, recently said. ‘”The depletion of fuel inventories is “rapidly accelerating” and could reach “critically low levels” ahead of summer, Amin Nasser, CEO of Saudi Aramco.” Europe is particularly in trouble because so much of its oil and oil-based products are imported. Some analysts have noted that the EU may run out of jet fuel before the end of June.
In the US, carriers are trying to soften the financial blow to themselves. Along with cutting unprofitable routes, they are raising fares rapidly and aggressively. The idea that a round trip could cost hundreds of dollars more than it did three months ago is likely.
People in lower-income levels will be those most affected. Bank of America reports, “Higher gasoline prices are stretching household budgets, with the greatest impact on lower-income consumers. In March 2026, the median lower-income household spent 4.2% of its income on gasoline, up from 3.9% a year earlier.”
Each of these challenges is a threat to the American economy. The BLS CPI report for April showed inflation at 3.8% year over year. This was driven by a 54% increase in fuel oil and 28% increase in gas.
The CPI also indicated that inflation is rising faster than wages, which makes some Americans feel “poor.”
Lower travel levels among Americans are not just about saving money. Consumer spending accounts for 68% of GDP. If consumers are feeling poor, it pushes the economy toward a recession. This is another reason to stay home and save money.
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