Advertisement
This is member-exclusive content
icon/ui/info filled

businessEnergy

Texas’ uncertain summer travel forecast: cheap gas, worries of bathroom break contagion

Expect gas prices below $2 a gallon and less traffic than normal for Texas outside major metros.

A uniquely uncertain summer road tripping season gets under way this Fourth of July weekend with enticing gas prices below $2 a gallon but new worries about a highly infectious virus turning bathroom breaks into risky adventures.

Texans and their neighbors in Oklahoma, Louisiana and Arkansas are expected to get out of their homes and take nearly 79 million trips over the next few months, according to AAA’s summer travel forecast. That’s down just 13% from last year, when air travel was far more robust.

This summer, most travelers will hit the road rather than book a flight, train or cruise.

Advertisement

“Many Texans will get out and explore this summer though they’re taking a ‘wait and see approach’ when it comes to booking and are likely to book more long weekend getaways than extended vacations,” AAA Texas spokesman Daniel Armbruster said in a statement.

Business Briefing

Become a business insider with the latest news.

Or with:

Some 72% of people expecting to travel are planning an overnight vacation via car over the next five months, suggesting long-weekend trips will bounce back more quickly as Americans begin to venture out, according to a survey conducted for the American Hotel and Lodging Association.

Advertisement

Filling up the tank

An uptick in travel bodes well for an economy reliant on gasoline sales and the travel industry — two sectors that have taken sizable hits since the start of the COVID-19 global pandemic.

The gap in gasoline consumption between this year and 2019 will continue to narrow, said Tom Kloza, global head of energy analysis at IHS Markit’s OPIS. But the firm doesn’t expect this year’s demand to reach record levels seen last year.

Advertisement

“Still, the continuing recovery at the pump is good news for a battered U.S. economy that needs a fill-up with some good news,” Kloza said.

Texas restrictions designed to control the virus spread have led to fewer drivers on the road for several months, causing demand for gas to contract sharply. The U.S., however, hit a milestone in its recovery this week as gasoline demand is more than halfway back to 2019 levels, according to a report from OPIS.

Summer 2020 will mark the cheapest travel season since 2016 for Texans filling up their gas tanks. The average gallon of gasoline is hovering around $1.89 in Texas. According to AAA Texas, it’s been below $2 for more than 100 consecutive days.

Nationally, the average gallon will cost $2.17 this weekend — the lowest since 2004, according to GasBuddy.

Traffic also is picking up in some city centers as Texas reopens portions of its economy.

Travelers driving through the Dallas and Houston metro areas are more likely to see congestion on roads similar to a “normal summer,” according to an analysis of travel in all 50 states by INRIX and AAA.

Outside of those metro areas, however, travelers probably aren’t going to run into normal traffic congestion for Texas.

Advertisement

You’ll likely encounter more RVs on your travels, though. The RV industry is seeing renewed interest from Americans wanting more solitary travel options.

Austin-based Outdoorsy, a fast-growing RV rental company, has been seeing a major uptick in demand since the beginning of the pandemic.

“Families are becoming more connected, there’s a togetherness thing that’s happening ... and it’s just made for the RV,” said Outdoorsy CEO Jeff Cavins.

The Airbnb-like RV rental platform has seen nearly a booking a minute over the last few weeks. Outdoorsy grew its business more than 4,300% between its low point in late March and June, according to the company.

Advertisement

“It’s the only way to take your family on an all-inclusive vacation and maintain a disinfected environment,” Cavins said. “At the same time camping, by design, is an act of social distancing.”

Health and safety

Typically, Fourth of July weekend is an important one for Texas convenience stores that count on travelers to boost sales. This year, it’s all about health and safety.

Paul Hardin, CEO of the Texas Food and Fuel Association, said he’s “absolutely shocked” by AAA’s estimate that tens of millions of summer trips will be taken by Texans and those living in surrounding states.

Advertisement

“Hopefully, people are doing it safely,” said Hardin, whose association represents 12,000 convenience stores, grocery stores and truck stops.

Its members have been battling coronavirus infections among employees and dealing with hundreds of liability lawsuits filed by customers blaming stores for their illnesses, Hardin said.

On top of that, Hardin said convenience store owners and employees are facing unruly customers refusing to comply with local face mask laws, putting workers and other customers at risk.

“When a team member confronts them that could potentially turn into a violent situation. ... We can’t really be the police on this,” he said. “I was on a phone call and one retailer said that they’ve called the police for their stores 100 times in the last week.”

Advertisement

U.S. Travel Association President and CEO Roger Dow issued a statement Wednesday encouraging everyone traveling this weekend to wear a mask.

“Our industry’s recovery is contingent on businesses and travelers alike doing their part to ensure a healthy and safe travel experience for all along the journey,” Dow said.

Connect with needs and opportunities from Get immediate access to organizations and people in the DFW area that need your help or can provide help during the Coronavirus crisis.