Prices rise as Canadian vacationers look to non-U.S. sun destinations

As some Canadians revamp plans or even cancel existing U.S. vacations because of political tensions, many travellers are watching prices rise for sun destinations elsewhere.

“We’ve seen about a 40 per cent decrease in U.S. books and inquiries, and about 20 per cent of what we had booked for the U.S. is cancelled,” said Andrew Stafford, manager of Flight Centre Kitsilano in Vancouver.

“Most of those people are choosing either to look at travelling to Europe in the summer or have looked toward domestic destinations and, obviously, sun destinations like Mexico, the Dominican Republic, and so on, are always really popular.”

Recent polling has indicated Canadians are choosing to spend their vacation dollars elsewhere in response to the economic and annexation threats coming from the Trump White House, but Stafford says the drop in their U.S. market is also due to factors like affordability, with the Canadian dollar weak against the U.S. dollar.

Regardless of the reason, that increased interest in non-American destinations is having an effect on vacation costs in popular destinations like Mexico.

“If you look at packages like your WestJet Vacations and Air Canada Vacations, et cetera, the prices are starting to creep up already heading into next year,” Stafford told 1130 NewsRadio.

“It’s for a couple of reasons — one is increased demand, the other is that most of those hotels down there do charge the tour providers in U.S. dollars. We are starting to see those prices slowly go up, sooner than we normally would. We would definitely recommend people start looking at Christmas or even into next year’s sun breaks now. Get a deposit down and lock that price in so you don’t lose those rates.”

Stafford adds many savvy travellers are also looking at other destinations with favourable exchange rates for the Canadian dollar.

“For those who would have been going to places like Hawaii, we are seeing a lot more interest in heading slightly further afield to Fiji or places like that where your dollar stretches a little further once you’re there.”

Japan is another busy destination where the Loonie has been strong compared to the yen.

“Europe is also always popular with Canadian travellers, they love to get out and explore, but there is a real boom in Portugal. Again, it’s a little more affordable once you’re there, which really helps.” Stafford said.

No matter where your destination, Stafford recommends getting up-to-date advice from a travel agent.

“There’s so much happening with travel right now, be it the cost of it, where your money is going, or consistently changing geopolitics and world situations,” he said. “Always have travel insurance and the most flexible policies you can so you don’t lose money on anything if you do want to change.”

With files from Michael Williams.