The Daily Item, Sunbury, PA

News

Discussion

July 25, 2008

Tour operators grapple with gas prices

On the bright side, some say group travel may increase

By Wayne Laepple

Charter bus operators say fuel prices are impacting their bottom line, but they also may be prompting more people to choose to ride instead of drive on long trips.

A Harrisburg-based bus operator, BBW Enterprises, sought bankruptcy protection Tuesday, citing high fuel prices as the main reason. The owner of Capitol Trailways and Rohrer Charter and Tours, BWW said it will continue to operate its scheduled and charter bus services while it reorganizes.

Bill Milbrand, general manager of Catawese Coach Co. in Shamokin, said the cost of diesel fuel has been a burden to Catawese.

"We've passed some of the cost on to the customer through a fuel surcharge," he said. "If and when the price comes down, we'll reduce the surcharge."

He said customers seem to accept the surcharge without complaint. He believes they understand the need for it.

Catawese cannot easily raise its prices because it is regulated by the state Public Utility Commission. However, it is allowed to impose a temporary surcharge in certain situations.

"Things have slowed a little bit," he said, "but our trips to New York City are still almost full."

Catawese charges $42 for a day trip to the Big Apple.

"People know you can't drive your car to New York, pay the tolls and park it for $42," he said.

Tour World, formerly Joe and Jan's Charter Bus Service, can raise its prices when fuel costs increase because it is unregulated, according to Liz Brown, director of safety for the Danville company.

"We have increased our prices," she said. "We're keeping ahead of high fuel prices." Brown said people seem to accept the higher prices, understanding that it's not just the cost of fuel for the bus, but the cost of parts and labor that have risen as well.

"I think group travel will increase," Brown said. "Groups can get better prices at hotels and attractions than an individual or a family."

So far this year, she said, the cost increase hasn't affected the charter and tour business. Many of the company's tours were booked in January or February, before the run-up in fuel prices.

"It may hurt us next year, when people see how much it will cost to heat their homes during the winter," she said.

Brown noted that the cost of gasoline and heating oil has come down in recent days, but diesel fuel prices haven't changed.

"The price of diesel usually fluctuates," she said. "But it seems to be staying the same. It usually changes from place to place, but it's the same price wherever you go."

King Coal Tours, of Kulpmont, is having a banner year, according to Jonathan Else, vice president.

"Business has never been better, but fuel prices are killing us," he said.

While trying to price tours fairly, he continued, the cost may be outpricing customers.

"Competition regulates our prices," he said. "People are sort of hunkering down, I think, because they're scared about what may happen."

"They may decide they can't afford the trip to Atlantic City or that Phillies game," he said.

Fortunately for King Coal, its retail vacation trips, such as weeklong tours to Yellowstone National Park or coastal Maine, are doing pretty well, Else said.

He said in June 2007, diesel fuel was about $2.89 a gallon, and today, the price ranges from $4.89 to $5.02 a gallon.

"We try to anticipate and plan for a rise in fuel costs, but who would have imagined it going up this much?"

Text Only
News
The Daily Marquee
Local Video
Stocks
Parade
Magazine
Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.