Soaring pump prices now reshaping Philippine travel, retail demand - BusinessWorld Online

People queue to enter the Ninoy Aquino International Airport Terminal 3 in this file photo.— PHILIPPINE STAR/RYAN BALDEMOR By Alexandria Grace C.

Magno, Reporter THE ATMOSPHERE feels more cautious than carefree under the midday heat inside Dreams & Destination Travel Services, a small travel agency in Cavite province south of Manila.Clients no longer walk in asking about dream vacations on impulse.

Instead, they quietly compare airfare prices on their smartphones while agents behind the counter repeatedly refresh airline websites, watching fuel surcharges rise almost in real time.What used to be spontaneous travel planning has become a carefully calculated exercise in budgeting, timing and compromise.

“Some clients are booking earlier to secure lower fares, while others are delaying decisions or requesting rebooking to more affordable travel dates and destinations,” Maria Carmela Aldana, who owns and manages Dreams & Destination, told BusinessWorld. The scene unfolding inside the travel firm reflects how the US-Israel war on Iran has begun to ripple through the Philippine economy.Beyond financial markets and news headlines, rising oil prices are feeding into transportation costs, inflation and weaker consumer spending, forcing businesses and households to rethink how they spend money.

“We’ve noticed an immediate impact on airfare pricing, with airlines adjusting fares and fuel surcharges more frequently,” Ms.Aldana said in an e-mailed reply to questions.

“Because of this, we now monitor rates more closely, update quotations faster and advise clients to confirm bookings earlier when possible.” For industries heavily exposed to fuel and foreign exchange movements, the impact has been swift.“Oil-dependent and foreign exchange-sensitive sectors, particularly those with logistics heavily reliant on oil and dollar-denominated debt, are the most affected,” Shawn Ray R.

Atienza, a stock researc...