Gas at $4.50 Hormuz Still Closed Your Summer Trip Just Got Way More Expensive

Why It Matters

Higher fuel-driven inflation and lingering Strait of Hormuz disruptions threaten summer travel demand and airline economics, risking capacity cuts, higher fares, and broader cost shocks across tourism and transportation sectors.

Summary

US consumer inflation held at 3.8% as gasoline and other fuel costs drove a sharp jump in travel-related prices, with gas up about 28% year-over-year and averaging over $4.50 a gallon. The spike has pushed travel costs higher for drive-to destinations and raised airline operating expenses after airfares and fuel surcharges rose in the two months since the Iran conflict began. Supply disruptions are intensifying because the Strait of Hormuz remains closed, constraining crude and refined-product flows. Forecasters warn the situation could worsen, creating potential jet-fuel shortages in Europe this summer and further elevating travel costs.

Original Description

April CPI came in at 3.8% but travel costs are running at roughly double the rate of inflation. On this week's Good Morning Hospitality, A Skift Podcast, Michael Goldin, Brandreth Canaley, and Jamie Lane break down what surging fuel prices mean for hospitality this summer: from drive-to destinations feeling the pain at the pump, to airline ticket prices spiking since the war in Iran began and the Strait of Hormuz still closed.

With gas averaging over $4.50 a gallon and potential jet fuel shortages looming over Europe, the GMH crew warns this travel season could get worse before it gets better.