Will the Carnival Skip Your Town?

May 5, 2008— -- Sun and fun lovers, take heed: Soaring fuel prices may put a damper on more than just your vacation this summer. Companies that provide some of the warm season's staple perks will change the way they do business to accommodate their rising energy bills.

Take, for instance, Paul Calabro. The owner of New York-based UsSkyAds.com said his company is the one behind some of the banners that fly across beaches and stadiums. The messages include marriage proposals and birthday wishes. But if you're thinking about taking your touchy-feely sentiments to the skies, watch out: It could cost you more than you expect.

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Calabro said he's considering raising his prices -- rates start at $450 per hour -- to compensate for spiking aviation fuel prices.

"In the last two weeks, it's gone up almost 50 cents a gallon," he said. "If it goes up another $2 a gallon, we're not going to be making any money."

If your favorite traveling carnival skips town this summer, fuel prices might be the reason.

Billy Tucker, of Alabama-based Dixieland Carnival Co., said the company has had to cancel four planned carnival shows -- all of which would have benefited charities -- because of skyrocketing gas and diesel bills.

The company uses 38 trucks to transport its rides from town to town. Last year, Tucker said, Dixieland spent an additional $36,000 on fuel. He expects another spike this year.

"Honestly, it's killing us," he said.

"A lot of people are suggesting we raise our prices," he said. "I don't feel that the consumer would appreciate that right now."

Steve Mattfeldt, the owner of Sun Valley Rides LLC in Arizona, said that his company has shortened the hours of some of its events, opening later in the day or staying closed Thursdays.

His carnivals, he said, run on three diesel-powered generators. Operating them costs $185 per hour. During slow periods, the cost of running the generators outstrips the revenue from ticket fees.