High prices force tourists to change their plans

The price of airfare and package tours continues to rise in Canada. Many tourists have changed their plans or destinations in order to reduce their expenses.

This is the case of Raffy Gutman, who travels several times a year from St. Louis in Toronto for work and to see his family.

These days, these thefts are hurting his wallet.

Traveling from the US to Europe is cheaper than traveling to Canada, even though the flights are much longer. It’s so expensive and I don’t understand why.

Right now, the price of plane tickets for round-trip flights from Toronto to St. Louis with his family of four would cost around $4,000. He has halved the number of visits he will make to the Queen City.

Dana Detelich, a resident of Raleigh, in North Carolina, wanted to visit several regions of Canada with his family for the first time. The cost of a single trip to Toronto would have been way beyond his budget.

The family then decided to make the trip by car, which would have cost a quarter of the price. Once they arrived in Toronto, plans changed.

We wanted to visit Quebec and other provinces, but the prices of flights and gas are exorbitant. We will have to be content and enjoy Toronto.

According to the most recent consumer price index (New window) According to Statistics Canada, prices for package tours increased by 6.9% and air transportation by 4.5% between May 2023 and May 2024.

Travelers are changing their habits

People are aware of the inflation affecting the airline industry. Amra Durakovic, communications manager at travel agency Flight Center Travel Group, finds that people are adjusting their plans accordingly.

According to a recent survey that the agency conducted with YouGova global online research data and analytics technology group, about two-thirds of Canadians surveyed plan to travel in the next 12 months. More than 80% of them are looking for deals and ways to save.

The survey also found that traditionally less attractive destinations increased in popularity, including the cities of Boston and Nashville, as well as the states of Colorado and Arizona.

Amra Durakovic also notes that people are increasingly planning their trips, taking care to book their plane tickets at least six months in advance.

Buying tickets in advance, travelling to new destinations, looking for deals and exclusive packages are all strategies Canadians are using right now to stretch their budgets.

Carole Doré, co-owner of the Voyages Rideau agency in Ottawa, agrees.

Some of his clients avoid traveling during peak season and favor certain less frequented regions.

People who can pick their children up from school a little before or after the holidays find attractive pricesshe says.

Carole Doré notes that those who wish to travel to Jamaica or Aruba favor the Dominican Republic, because flights to this destination are cheaper.

Tourism industry hit

Although Canada has been attracting more tourists since the pandemic, the levels have not yet reached those of 2019, says Frédéric Dimanche, director of the School of Hospitality and Tourism Management at Metropolitan University of Toronto.

The cost of flights is a constraint, he said, as are the prices of hotels and restaurants. He said that would discourage some tourists from visiting Canada.

We see that American tourists have not returned in such large numbers. We also had Chinese tourism in Canada which was quite strong in 2018 and 2019. And that has not picked up.

He notes that the quality of services offered could also be affected. According to Mr. Dimanche, the industry lost a lot of qualified personnel at the height of the pandemic. Employers are still struggling to fill positions.

It may create discontent and a decrease in the competitiveness of the country or destinations if we fail to provide services at the level of quality that tourists expect.

Flight prices, a central factor

Travel enthusiasm is always strong during the summer months, but in this case, supply is not meeting demand, according to Karl Moore, an airline analyst and management professor at McGill University.

He supports his point by citing the failure of airlines, such as Lynx, which ceased operations earlier this year.

It is not easy for small airlines to survive in this markethe says, which allows the biggest companies to increase their prices and profits.

Wages for employees of these companies have also increased, as have the cost of fuel. Companies must therefore increase prices to succeed in the current environment.Mr. Moore added.

When operating costs skyrocket, airlines have no choice. These increases are automatically reflected in passengers’ bills.

The expert notes that consumers will have to expect high prices in Canada for the next few years.