TRAVEL COSTS DROPPING

Canadians got a break on inflation in March as gas prices fell and a slowdown in travel to the United States helped cool airfare costs, Statistics Canada said Tuesday. The annual rate of inflation slowed to 2.3% last month, down from 2.6% in February. Travel costs in the U.S. also declined.

In this country, StatCan said gas prices fell 1.6% year-over-year in March, coming off a hike of 5.1% in February, but the agency also pointed to a drop of 4.7% annually in prices for travel tours last month following a sizeable jump over the long weekend in February.

Airfare costs were down 12% year-over-year in March, StatCan said, and rose only slightly month-to-month.

StatCan said the cooling in flight costs came as fewer Canadians travelled to the United States last month, when many families typically get away for March break.

U.S.

Meanwhile, U.S. inflation also declined last month as the cost of gas, airline fares, plus hotel rooms similarly fell.

Among the sharp drop in travel-related costs, air fares dropped 5.3% just from February to March, while hotel room prices fell 3.5%.

Economists said those drops in part reflected much slower international demand as the number of tourists visiting the United States has fallen sharply amid President Donald Trump’s aggressive trade policy.

Visits to the United States from overseas declined 12% last month, according to government data.

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.