As a large, white shuttle bus makes its way down to Lees Ferry, the anticipation among passengers grows. These travelers, having come from Flagstaff, are about to embark on a journey down the Colorado River, yet the rising cost of this experience is becoming a concern for the companies facilitating these trips.
For Arizona Raft Adventures (AzRA), the escalating fuel prices are a growing challenge. Dennis Smoldt, the general manager of AzRA, highlights the impact of increased gas costs, which have surged in light of the ongoing conflict with Iran.
“We really don’t have the luxury of being reactive in the moment and increasing costs when our costs go up,” Smoldt explains, noting the financial strain on companies that operate motorboats and shuttle buses reliant on gasoline.
AzRA faces a unique predicament as it sells trips years in advance, leaving them unable to adjust prices in response to current gas price hikes. “We can’t change that, so we just have to absorb it,” says Smoldt.
Currently, gas prices in Arizona are over $1 more than they were a year ago. While nationally, prices have decreased by about 40 cents a gallon in the past month, according to AAA, the pressure remains on consumers and businesses.
The NPR/PBS News/Marist poll reports that 45% of Americans are opting out of summer vacations this year, with many citing financial limitations as their reason.
In Flagstaff, Scott Davis from Ceiba Adventures echoes AzRA’s struggles, noting the necessity of implementing gas surcharges for shuttle services. “It’s a legitimate concern. It’s not a good feeling whatsoever with that,” Davis remarks, acknowledging the burden on both the company and its employees.
Employees are also feeling the pinch of higher prices, as Davis points out a recent conversation about the increased cost of filling up their vehicles. “Our prices are based on $4 a gallon, and our trucks are big trucks that are not known for … good gas mileage,” he adds.
Meanwhile, Flagstaff residents such as Harlan Taney, who own their equipment, are still impacted by rising fuel costs. Taney mentions the cost-effectiveness of self-supported trips, but admits that the increasing gas prices weigh heavily on expenses.
Smoldt, Davis, and Taney, like many others, could not foresee the geopolitical tensions leading to this situation. “Nope, definitely not. [It] was not on our bingo card,” Smoldt remarks, reflecting on the unpredictability of the events.
Experts suggest that even with a resolution to the Iran conflict, gas prices may remain elevated for some time.
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