Dec. 9, 2024 "Canadians turn domestic for holiday travel, with weak loonie discouraging U.S. trips": Today I found this article by Christopher Reynolds on BNN Bloomberg:
“People are travelling a little bit less,” said Choi, who runs the Money We Have personal finance and travel website, which has him on a plane every four to six weeks.
The trend is one he wouldn’t have anticipated two years ago, when the urge to get away was nearly palpable after COVID-19 border closures ended and air travel became possible once more.
“Because of that pent-up demand from the pandemic, people kind of took their trips. In 2022, I feel like everyone was travelling. Everyone was like, ‘I’ve got to get it out.’
“Some people waited until 2023, but this year everyone’s kind of calmed down,” he said.
That pattern looks likely to persist in December and January. After turning abroad for holiday vacations last year, more Canadians are keeping their travel plans in-country this Christmas season due to
squeezed budgets,
lower domestic fares
and a decisive end to the post-pandemic boom in overseas travel
— and now a slumping currency.
The number of Canadian flights bound for the United States this December is slated to fall 2.5 per cent year-over-year, according to figures from aviation tracking firm Cirium.
Meanwhile, domestic flight capacity is set to jump nearly 10 per cent this month compared to December 2023.
The extra flight capacity north of the border has helped push down prices even as demand goes up, with fares on flights within Canada sitting 20 per cent lower than the year before as of September, the latest month for which Cirium had data.
Spokesman Mike Arnot said fewer flights to the U.S. — from all Canadian carriers except Porter Airlines, which is rapidly building its fleet and flying south — means “higher airfare generally,” as capacity falls further than demand.
Wallet worries have reined in spending somewhat, with gen Zers and millennials thinking twice before shelling out big bucks on experiences, travel included.
“We can’t ignore the fact that people are pinched. Interest rates are starting to go down, inflation is a little more in check, but still the cost of housing, cost of living are top of mind,” said Ramzi Rahbani, a vice-president at FlightHub.
A survey from the travel platform found that slightly more than half of Canadians are planning to hold off on trips over the holidays.
Thoughts about steering clear of the U.S. may loom larger after the loonie, which was already hovering near 72 cents US, slipped to its lowest exchange rate in years following president-elect Donald Trump’s proposal for a 25 per cent tariff on imports from Canada.
“I’m getting a lot of people thinking, ‘Do I still want to go to the U.S.?’” said Choi.
Canadians who normally decamp for Florida, Arizona and California during the winter are among those who would feel the weaker dollar most strongly.
“For snowbirds, the U.S. has definitely become more expensive,” said Jill Wykes, a travel expert who was speaking from Sarasota, Fla.
“All kinds of people had credit for things that had been cancelled in 2020 and 2021, especially cruise lines.” Those vouchers and travel credit are now spent.
Millennials — who now outnumber baby boomers in Canada — and gen Z together comprise more than half of all passengers, according to FlightHub.
They cited family visits as the biggest reason for air travel over the holidays, which helps explain the domestic turn.
Overseas, the capitals of the Philippines and India — Manila and New Delhi — saw some of the highest booking numbers from Canada between Dec. 20 and Jan. 1, according to FlightHub.
“They tend to be returning to see family and friends too,” said Rahbani. Meanwhile, leisure-heavy trips to some sun destinations have plateaued.
Despite the shift toward domestic travel, many broad patterns remain in place. For those venturing south, New York City, Florida and California remain the top destinations across virtually all age groups.
“It’s stabilized,” said Richard Vanderlubbe, founder of travel agency Tripcentral.ca, referring to travel habits generally. But that similarity to 2023 is itself a big change from recent years, which saw wild swings in customer volumes as COVID-19 restrictions came and went.
While passenger numbers at Canada’s eight largest airports rose four per cent year-over-year in October, that only slightly outpaced population growth, according to Statistics Canada.
And the five per cent increase in air travellers since 2019 fell short of the 10 per cent growth in population over that period, meaning volumes are down on a per capita basis.
Nearly a quarter of FlightHub’s customers said they budgeted between $1,000 and $2,000 for holiday travel.
Another 22 per cent set aside between $500 and $1,000,
and most of the rest socked away less than $500.
This report by The Canadian Press was first published Dec. 8, 2024.
Dec. 13, 2024 "Weak loonie straining your travel budget? How to still take the trip and save money": Today I found this article by Sammy Hudes in the BNN Bloomberg:
But Wilson said this year’s celebrations to mark turning 28-years-old were somewhat dulled. Like many Canadians venturing across the border, she said the exchange rate meant having to make budget-conscious decisions on how to spend her money.
“With the U.S. dollar being so high for us Canadians nowadays, it didn’t really seem like there was value for me to do any spending beyond the necessities,” Wilson said.
“If I can take advantage of the sales at home within my own currency, I would much rather do that than just spend while I’m travelling.”
Whether having to scale back vacation spending
or deciding to forgo a trip to the U.S.,
it’s a reality many travellers are contending with this holiday season as the loonie’s value continues to weaken.
The Canadian dollar has been hovering around 70-cents US in recent weeks, a slide that has seen its value depreciate to near-five year lows.
With that in mind, Wilson said it didn’t seem worth it to shop as much on her trip this time around.
“In the past, there were a couple shops in New York that I prioritized in terms of how we planned our itineraries,” she said.
“Because I knew that things were so inflated, I didn’t really have that same drive to go and visit them this year.”
A BMO survey this fall found 79 per cent 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 per cent 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 U.S. dollar, it means you need 40 per cent 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 U.S. 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 U.S., 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.
This report by The Canadian Press was first published Dec. 13, 2024.
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Anne R, Montréal, Québec, would like to know:
What's your budget for Christmas gifts this year?
Between $200 and $500
31.00% (1260)
$500 or more
25.09% (1020)
Between $50 and $100
21.62% (879)
Not applicable
11.46% (466)
$50 or less
10.82% (440)
Rachel H, Owen Sound, Ontario, would like to know:
Will you be travelling for the upcoming holidays?
No
72.37% (3028)
Yes, by car
13.96% (584)
No
12.07% (505)
Yes, by plane
1.60% (67)
My opinion: No, I won't be travelling.
Dec. 18, 2024: I found this on Linked In:
Asking these two questions can help positively reframe your thoughts when uncertainty creeps in about a big or exciting decision:
💡Could this be as magical as it seems?/ what does it look life if it goes well?
📈How will I feel if I don’t give it the effort?
Kat Cole uses these questions to guide both personal and professional decisions, like becoming President of AG1. She believes that since a lot of decisions are risky, there’s no point in dwelling on what could go wrong; our minds easily fixate on negatives.
Instead, focus on what can be gained, learned, and transformed by your next big choice. Her approach doesn’t ignore potential downsides but balances our natural tendency to focus on negatives with a proactive, positive perspective.
Click here (https://bit.ly/4gBns1e) to subscribe to the weekly Everyday Better newsletter on LinkedIn for more content on mindset, leadership and personal development.
https://www.linkedin.com/feed/update/urn:li:activity:7274876469405704194/
Dec. 20, 2024: I found this on Facebook:
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