The Price of a Warm Vacation on the Rise
With the New Year upon us, Canadians may be resolving to travel more in 2014. However, they’ll be disheartened to learn that the price of trips down south are on the rise. Not only are tour operators increasing the price of accommodations during peak travel times, but Canadians are also faced with the reality of a depreciating loonie.
Sunquest recently stated that vacation packages will be raised on Jan. 11 seeing how, “tour operators generally pay for the cost of hotel accommodations in U.S. dollars. The Canadian dollar’s value has deteriorated to such an extent that we must raise our prices.”
But of course, it isn’t just the lower value of the loonie that will cause companies like Sunquest to increase pricing – the weather is also a huge influence. More and more travellers are looking to escape the extreme cold temperatures that have swept throughout the country. As such, the demand for vacations are at an all-time high, leading to soaring rates and fees.
But it isn’t all bad, at least not for the airlines. Since higher prices and increased traffic are expected to bolster the bottom line of Air Canada and WestJet, both companies were able to raise the price of their shares.
The fact of the matter is, this winter may be a good time to hibernate and lay low. Stock up on good and bad movies alike, grab some microwavable popcorn, crank up the heat and spend some quality time indoors if you can. If nothing else, your wallet will thank you.
http://business.financialpost.com/2014/01/09/sunquest-loonie-flights-vacation/
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