In the US, we are experiencing the impact of the economic crisis and the talks of war around Iran literally at the pump. Gas prices are expected to heat up this summer, with rising oil prices, and Americans marking their calendars for summer vacations, it is no surprise the majority is preparing to spend more to top off the tank. Consumers in Generation Y are more likely than older generations to carpool, walk, cycle or utilize public transportation as a result of these high gas prices. GenY in the US is most likely to find alternate transportation methods, according to the latest American Pulse™ Survey.
Gen Y scored 113.07 on an index showing the propensity of each age group to consider alternative forms of transportation as gas prices approach 5 dollar per Gallon, meaning they are 13% more likely than the average population to drive less as pump prices rise. Propensity to Consider Alternate Transportation at 5 dollar per Gallon (vs. Adults 18+):
- Gen Y: 113.07
- Gen X: 94.52
- Boomers: 98.43
- Silent: 98.77
Generation X appears the least likely to adopt alternate forms of transportation. For some, increasing gas prices may not be influential, but current life situation is most likely the leading factor creating the need for a car. “Members of Gen X are likely at high points in their careers and have children to transport to and from extracurriculars,” said Dianne Kremer, Senior Analyst at BIGinsight™. “The necessity for a vehicle is causing them, along with consumers of all ages, to cut back in other areas, like taking fewer shopping trips, searching for sales and sticking closer to home.”
Pump prices are causing many consumers to pause from packing their bags. According to the survey, 46.8% say the cost of fueling up will affect their vacation plans in 2012. Of those rerouting, 39.2% say they won’t be taking a vacation at all this year while 3 in 10 (31.5%) plan to cut back on other parts of their travel budgets (cheaper hotels, fewer days of vacation, etc.). 29.1% won’t be traveling as far as originally planned and 23.7% are planning a staycation. Staycations are the most popular among Gen Y (27.2%) while Boomers are more likely to not be taking a vacation at all (43.8%).
About American Pulse™
The American Pulse™ Survey is collected online twice a month covering topics such as politics, pop culture and the economy. 4,185 respondents participated in the 2nd February American Pulse conducted 2/27-3/5/2012.