Travel Blog

Canadians travel cost going up

Canadians travel cost going upMany Canadians spend their vacation in the US. Snow birds make the annual trip south every fall to escape the snow and ice in Canada. They head to Florida, Texas, Arizona and California to spend the winter. They head home once the winter is over. Canadians have enjoy warm temperatures and also a strong dollar for the past 5 years. However now the dollar is not so strong and Canadians travel cost going up means it is going to cost more.

Canadians travel cost going up – Categories

Exchange rate

Lately the exchange rate, the price you pay to purchase US dollars has been going up. As of writing this post the best rate that is currently posted is ninety cents or in other words it takes approximately $1.11 Canadian to purchase $1.00 US, which is an 11 percent increase in the cost compared to a few years ago. It costs more to travel as a result and Canadians are beginning to look for cost saving measures.

Cost to travel

If your vacation is costing you $1000, then you are going to pay an additional $111 Canadian for every $1000 US you are going to spend. This can be significant and can add a significant amount for more expensive vacations.

Hedging the exchange rate

One solution is to hedge the exchange rate by averaging your cost over a year. As rates change you will pay the current rate, but at least you will not lock in the rate for your total vacation. if rates improve which they might then you get to take advantage of the improved rates. Unfortunately it also works the opposite way as well. The economists are forecast and $.85 cent dollar by mid 2015, which means that your US vacation cost is going to go up another 5%!

Cutting back on travel

Another solution which is not popular with many people is that the Canadians will start cutting back on travel to conserve money and bring it back to levels that they can afford with the increasing costs. This will hurt the travel industry to some degree and could even trigger a decline for a short period in this industry.

Let’s go anyway

Many senior snow birds realize that they may not have than many years left that they can travel and as a result just suck it up and plan to go anyway. They only live once and if they can get the money together they plan to go regardless of what the cost will be.

What are your plans for vacationing in the United States this coming year? For ideas about trip planning, click here.

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