The ongoing conflict in Iran started by the U.S. and Israel, which has increased the average price of a gallon (3 liters 78 ml) of gasoline in Florida by about $1 over the past year. 50 cents (5 PLN 40 gr) to almost 4 dollars. 50 cents (PLN 16.20) per gallon according to AAA has already led to a decline in bookings for cruises departing from Port Canaveral.
Americans expect the situation to worsen further after last week's closure of Spirit Airlines, which has struggled for years financially, leading some to say rising fuel costs were the last straw. The Florida-based airline operated dozens of gates at Orlando International Airport, offering low-cost flights that made travel to the most popular U.S. vacation destination accessible to people from all over the country. Cheap flights and the relatively close proximity of the Orlando airport to Canaveral also helped keep cruise lines fully booked.
It all comes down to a turbulent summer and an uncertain fall in the state of Florida, where the state's tourism-based economic drive is critical to its financial health.
Michael Schottey, vice president of membership, marketing and communications at the American Society of Travel Advisors, says demand from the state's post-COVID tourism boom has already driven up prices for airline tickets and hotel rooms, and the recent increase in gas prices has become a tipping point for families on a tight budget.
— The situation has gotten worse for people who were already struggling and improved for those who were already doing well. And the stock market keeps going up, Schottey says.
Florida ranks as the top U.S. vacation destination every year, with more than 143 million visitors in 2025.and its tourism industry has seen a surge in recent years as Gov. Ron DeSantis eased pandemic restrictions while other states tightened them. Tourism is by far the state's largest industry, supporting tens of thousands of jobs and generating billions of dollars in sales tax revenues, which make up a significant portion of the state's budget.
This heavy reliance on tourists led lawmakers to cut budgets after the Great Recession of 2008. Schottey says the current market, despite the impact of the conflict with Iran, is still doing well. However, many travelers are now looking for cheaper holidays closer to home.
– People will travel, but the level of these trips will depend on the economic situation – he estimates.
Marketing for the state remains the responsibility of Visit Florida, an agency overseen by DeSantis that receives about $80 million each year. (PLN 288 million) from the state budget. The governor turned to Visit Florida for help after tourism dropped during the early months of the pandemic. Visit Florida President and CEO Bryan Griffin says the state's tourism industry remains strong and his agency continues its balanced marketing approach, reaching travelers traveling by car and air.
“This year, data shows that Florida maintained its position as the top domestic destination and we increased our market share of Canadian tourists to the United States,” Griffin said in a statement. — In terms of value, the latest data shows that Florida ranks first in value compared to our main competitors.
The conflict in Iran, including footage of a drone attack on a popular Dubai hotel, has also led many people to cancel plans to travel abroad over safety concerns.. Carol Dover, CEO of the Florida Restaurant and Lodging Association, said an FRLA board member recently informed her of an increase in the number of guests reserving rooms on what are typically quiet days, adding that guests are choosing vacations that are accessible by car rather than flying abroad.
As with previous conflicts affecting the oil industry, skyrocketing gasoline prices caused by the war with Iran will eventually come down, and Dover believes that point will come soon.
“Our tourism is resilient and we are extremely fortunate to be in a state that has 850 miles (1,367 km) of the most beautiful beaches in the world,” Dover said. — People say they won't go to Europe or Dubai, they will just stay here.
Schottey says a state that relies so heavily on tourism should worry when entire groups of travelers can no longer afford to visit. “A price shock always follows a price increase,” he warns. “But as we've seen time and time again with oil, getting back to normal is a very long process.
Free is still too expensive
Kyle Bohman, a Melbourne-based travel advisor serving the Space Coast area of Florida, says high travel costs have made even free holidays unattainable for some people. He cited the example of a company that offered free family cruises to its employees, only to discover that some could not afford to travel to Port Canaveral, where the ship was scheduled to depart.
– Despite this [darmowych rejsów] it's hard for them to justify the cost of travel, says Bohman. People look for promotions and get good offers, but when they add everything up in the family budget, it turns out that these options are not so attractive at all.
Bohman added that cruise lines were already struggling to fill ships sailing out of Canaveral when the popular low-cost airline Spirit Airlines went bankrupt last week. The airline offered daily flights to Orlando International Airport for just $64. (PLN 230), thanks to which cruises from Port Canaveral were available to people from all over the country. With the airline gone, travelers living within a day's drive of the port will still take a cruise, but will forgo a hotel stay the night before the ship departs. Many travelers who live at least a two-day drive away may choose not to travel altogether.
— The Spirit market was vast. This made it relatively easy for a family of four to come to Orlando. But the concept of cheap travel has faded away, he says.
Schottey adds that hotels and restaurants catering to budget travelers have already seen a decline in bookings. These companies are now trying to come up with offers that will bring customers back.
– Suppliers try to offer discounts to encourage consumers. These are places that didn't have any problems until the cost of living started rising, Schottey says.
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The World Cup didn't help
In March, the U.S. Department of Transportation announced a partnership with Great American Roadtrip Inc. (a Great American Journey company), aimed at encouraging people to visit national monuments during the summer as the country celebrates its 250th birthday. Schottey says that while he hopes Americans will visit more attractions, many will not be able to afford the trip.
Touting itself as the top vacation spot in the U.S., Florida is likely to be hit harder by rising costs than other states. But Schottey says tourism is declining across the country. An analysis released this week by the hotel industry found that hotels in Miami and Kansas City that had hoped to be fully booked for FIFA World Cup games in June and July still have plenty of vacancies.
We hoped that the World Championships would be great and would have a huge impact on tourism. Still, it is struggling, says Schottey.
Bohman expects summer travel to remain profitable due to the large number of bookings made by families six months in advance, well before the oil conflict. However, people who usually start planning fall and winter trips now are starting to hesitate given the rising costs. And those who can afford more expensive travel give the industry a reason to keep prices high in the long run. Many air carriers have recently introduced an increased fuel surcharge on tickets, which may continue unless demand declines.
— If the fuel surcharge stays high enough, they'll just include it in the costs. Unless they notice a serious drop in demand, prices will remain unchanged, Bohman concludes.
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
