Gas Costs Hurt Vacationers, Nonprofit Organizations
Several recent articles have indicated the impact that gas costs are having on lifestyles. Two related articles were reported in recent posts at this site, “How to Find the Cheapest Gas Price in Your Area“and “Plug-In Hybrid Leads Toyota’s Drive Beyond Oil“. In The Demise of the RV, Eric Fry reports for Rude Awakening on the disappearance of the once-ubiquitous Winnebago and its close cousins from American roadways:
“I never would have bought [my motor home] if I thought that gas would go this high,” a retired firefighter in Westchester County told the Hudson Valley’s Journal News. “My wife always wanted to go to Napa Valley,” the firefighter lamented. “But with gas so high, it probably would be cheaper to fly and rent a car, rather than take the motor home.”
The firefighter is probably right. We did the math:
Assuming gas mileage of 10 miles to the gallon, a 31-foot motor home would consume about $2,500 worth of gasoline to journey from the Hudson Valley to the Napa Valley, and back again. By comparison, two roundtrip plane tickets from JFK to San Francisco would run about $375 each. Even after paying another $450 to rent a midsized car for a week, the fly/drive combo would only cost about $1,200 – or less than half the cost of the RV’s gas.
At the same site, Dan Amoss offers stock trading advice related to the weakest recreational vehicle (RV) companies. (Note: I do not offer or endorse any financial advice related to the stock market):
For most of the last three decades, oil prices have been low, the economy has been expanding and motor home sales have been soaring. RV sales have been trending up for nearly three decades, but there are many reasons to expect a huge decline in 2008-2009.
The posts wraps up with questions and a request for comments from Joel Bowman of Rude Awakening:
Is the high oil price the greatest threat to market stability in the months ahead? How bout the financial fiasco that has rocked Wall Street to the core? Or, perhaps it’s political incompetence? We’d like to hear your thoughts on the market’s greatest risk and, if you can see a way out, your ideas on how to play the downward trend to your favor.
This situation is clearly seen in nonprofit food delivery programs to homebound seniors such as Meals On Wheels. In these programs, oft-time volunteers deliver meals to the elderly, typically by driving—and paying for the gas—their own vehicles. Nowadays, volunteers are finding it harder to fund the delivery.
The MOWAA has seen a 58% loss in volunteers due to the gas prices alone. Dealing with the loss of volunteers, “our programs have to cut back on everything,” says Enid Borden, President and CEO of Meals On Wheels Association of America. Now, “sometimes volunteers are only able to go out once a week or once every other week,” says Borden.
The one meal a day can turn into no meals a day or a meal and frozen dinners for additional days. Now 4 out of 10 seniors sit on a wait list hoping to be one of the million to receive a warm meal.
Other effects are seen from the general economic downturn, as former corporate donors have either gone bankrupt or simply don’t have any funds to make their typical donations:
Citymeals-on-Wheels, which serves New York’s homebound elderly, knows this firsthand. While donor contribution is up by 13%, Citymeals has been hit by a decline in the high-end sector and in special events. Bear Stearns (BSC) was a major donor for the organization, and Citymeals has lost $500,000 in charitable contributions since that firm went under, says Marcia Stein, executive director of Citymeals. “To lose a half a million dollars in the last quarter of the year, that was very tough, and that’s money that will not come back,” says Stein. “It’ll take many years to recover.”
In order to contribute to Meals on Wheels or Citymeals-on-Wheels, please visit the following websites: Meals on Wheels Association of America and Citymeals-On-Wheels. Thanks to Lyneka Little for highlighting this problem in her article.
Do you have any stories of your own about the effects of gas prices on your summer plans or lifestyle that you would like to share? If so, please add them to the comments. Thanks and best wishes, Jim
Copyright © 2008 James K. Bashkin
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