Prices Surge as Canadians Shift Vacation Plans Away from U.S. Treasures

As political tensions escalate, many Canadian travellers are finding themselves rethinking their vacation plans, opting to cancel trips to the U.S. in favor of sunnier shores elsewhere. Andrew Stafford, manager of Flight Centre Kitsilano in Vancouver, reports a striking 40% decline in bookings and inquiries related to U.S. vacations, with about 20% of previously made reservations getting scrapped.

Where Are Canadians Headed?

In light of the shifting landscape, many Canadians are redirecting their vacation dollars towards destinations in Europe, as well as popular sun spots like Mexico and the Dominican Republic. With summer approaching, these non-American locations are gaining traction among Canadians looking for a getaway.

Polling data highlights that the economic climate—a byproduct of threats related to both annexation and trade issues stemming from the U.S. government—plays a significant role in this trend. Compounding the situation is the weakening Canadian dollar against the U.S. dollar, which drives up the cost of trips to the United States.

The ripple effects of this shift are already being felt on prices for vacation packages. As Stafford notes, “If you look at offerings from WestJet Vacations and Air Canada Vacations, prices are already trending upwards as we head into next year.” The reason for the increase is twofold: heightened demand coupled with the fact that most hotels in sought-after destinations charge tour providers in U.S. dollars.

Lock in Your Rates Now!

Stafford urges Canadian travellers to lock in their vacation packages early, particularly for the holiday season and into next year. “Getting a deposit down can help ensure you don’t miss out on current rates,” he cautions.

While traditional hot spots like Hawaii are losing favor due to costs, savvy travellers are exploring options further afield, with Fiji emerging as an attractive destination where the Canadian dollar stretches further. Additionally, Japan continues to grow in popularity, thanks to favorable exchange rates.

Europe, always a beloved choice for Canadians, is seeing a remarkable rise in interest in Portugal, where affordability makes it an appealing option for many.

Travel Smart

No matter where Canadians choose to travel, experts recommend consulting a travel agent for the latest advice. “The travel landscape is ever-changing, driven by economic factors and geopolitical events,” Stafford emphasizes. Ensuring proper travel insurance with the most flexible policies is crucial to safeguarding against unexpected changes.

Canadians are increasingly embracing global travel options, seeking warmth, adventure, and value all around the world—making 2024 the year for exploration beyond U.S. borders. Will you be among them? Don’t miss out!