Question

If transportation costs increase substantially, how might the hospitality and tourism industry be affected?

Air travel will become too costly, leading people to choose to drive to closer destinations.
The industry will not be affected because transportation is a minor part of hospitality and tourism.
The whole industry will improve because travelers will have to pay more to get to their destinations.
Travel will become more expensive, causing people to stay home and hurting the industry.

Answer 1

If transportation costs should increase, Travel would become more expensive causing more people to stay home and hurting the industry.

According to the law of demand, when the cost of a good goes up, people would demand less of it because it would become more difficult to obtain.

As the cost of travelling to These destinations rises, people would not be able to afford the expensive cost of travelling. They would rather stay back at home.

The tourist industry on the other hand would suffer because they would get less supply of travellers. They would make less from tourism since people are no longer travelling.

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