Whether having to scale back vacation spending or deciding to forgo a trip to the US, many travellers are contending with a weak loonie as the Canadian dollar’s value continues to decline. The currency has been hovering around 70-cents US in recent weeks, a slide that has seen its value depreciate to near five-year lows.
A BMO survey this fall found 79% of Canadians planned to cut back on holiday spending this year, including when it comes to vacations.
Nearly one-third said the cost of international travel – including airplane tickets, lodging and gas – is now too expensive for their budgets, while around 45% said travel is a lower priority as they manage day-to-day expenses.
“(The cost of) things, as we all know, have gone up. When you factor in the US dollar, it means you need 40% more than what you thought if you were just doing a comparison between our dollars,” said Gayle Ramsay, head of everyday banking and customer growth at BMO.
While the survey said Canadians plan on spending an average of more than $1,800 on travel this season, Ramsay said current conditions might make it necessary for some to “find ways to economize” within their budgets or even shorten their stays.
“Maybe you’re not doing the five-star restaurants every night,” she said. “Maybe you actually plan that you have one special night and then you look for less expensive restaurants, or even some of the entertainment options – you limit that.”
Ramsay also encourages Canadians to take advantage of travel credit cards, especially those that waive foreign transaction fees or accumulate points that can be redeemed to cover expenses abroad.
“What I always say is, ‘Plan for it, save for it, and then track your expenses when you’re actually on vacation,'” she said. “That way, you don’t get a big surprise when you come back.”
One segment of Canadian travellers that is seemingly undeterred from stateside plans this season is the population of snowbirds – those who make warm destinations such as Florida and Arizona their home for the winter months.
The Canadian Snowbird Association said it expects most of its 115,000 members to temporarily settle in the US sunbelt this season as they do annually.
“The snowbird market tends to be more resilient to fluctuations in currency when compared to the traditional travel market. These individuals tend to own homes in their winter destinations, they’ve established ties within these communities as well,” said spokesman Evan Rachkovsky. “They’ve already invested a significant amount of money, in most cases, in the maintenance of these winter properties, so because of that, they generally end up travelling.”
Still, Rachkovsky said he expects many Canadian snowbirds will face tougher choices about how they spend their money compared with past years.
“The No. 1 way in which snowbirds mitigate a weaker dollar in these cases is by making changes in their discretionary spending,” he said. “So, eating out, rounds of golf and other outings, those are always the first things to be scaled back on in these situations where the dollar is being impacted.”
Some might also choose to reduce the number of days they’re down south due to the cost of travel medical insurance, which depends on the duration of the trip and can be “quite exorbitant” in the US, he added.
For those still mapping out budgets for upcoming trips, Wilson recommended trying to find savings in areas such as transportation and other logistics.
While Ubers or taxis might get you somewhere fast, opting for more budget-friendly methods will ensure money is left over for fun experiences.
“Conveniences might not necessarily be the right choice because it could be more expensive overall,” she said.
If this article was shared with you by a friend or colleague, you may enjoy receiving your own copy of Travel Industry Today with the latest travel news and reviews each weekday morning. It’s absolutely free – just CLICK HERE.