The CAD dollar plunge!

Aside from fewer cross-border shopping trips, how can we expect to see our travel dynamics change based on the new lower value of the Canadian dollar?

Tour suppliers negotiate their contracted rates a good year or more in advance. In July 2014 our CAD $ was valued at approximately .95USD. Today we sit at .82USD. Canadian tour suppliers will definitely be hit with a deep cut to their profits and I wouldn’t be surprised to see price increases later this year for the 2016 winter season to destinations such as the all-inclusives in Mexico and the Caribbean which are all based on USD pricing. If you know when/where you want to travel perhaps now is the time to book as a number of suppliers already have their 2016 product in place.

The same goes for Canadian pricing to Europe which is based on the much stronger Euro pricing versus our tenuous loonie. Globus, Insight and Trafalgar’s 2015 product pricing is based on the 2014 CAD$ value and therefore reflects excellent savings. You can be sure that their 2016 pricing will be significantly higher!

The luxury American tour suppliers are the ones basking in the strong USD value. Their buying power has increased 10 to 20-fold and they can be generous in their offers to our valued Canadian market. A number of USD based cruise and tour companies are offering spectacular savings to induce the Canadian traveller to invest their hard earned CAD$ with them.

Tauck Tours made an unprecedented move last month. They had already released their 2016 pricing to Europe in late February 2015. Due to the increased value of the USD vs EUR exchange they actually rescinded and revamped all their pricing to Europe for the 2016 season to reflect savings of anywhere from $400-$1200USD per person! I had clients who personally benefitted with a huge savings! This in addition to their Canada Promo offer of 2 Free Nights pre or post tour for any Europe tour departing in 2016. Wonderful incentive indeed!

Paul Gauguin Cruises offers exceptional savings to Canadian Residents as well. Twenty-five percent off the already 50% discount they released on specific departures to the Polynesian Islands. A fully inclusive based cruise experience aboard 5* luxury ships for as little as $3345USD – 7 days and this price includes your airfare from Los Angeles to Papeete! An American citizen would pay $3995USD for the same cruise. You have to book before May 2nd to qualify for this special CANADIAN RESIDENT special. PG Cruises Canadian at Par Offers

Oceania Cruises is another luxury line offering special Canadian Resident pricing on over 20 applicable journeys. Beautiful mid-size ships ranging in size from 1300 to 750 passengers. Exquisite cuisine and exceptional services and amenities on board. Extensive journeys encompassing Europe, Asia, Africa, Alaska and South America. Prepaid gratuities and internet as well as up to $500 shipboard credits per cabin. Oceania Canadian Resident Specials

So 2015 is definitely the year to take advantage of exceptional CAD$ pricing to Europe or to benefit from the supreme value-added benefits of the USD$ discounts offered by the American suppliers!

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About the Author

Joy has long been a believer in the art of travel: the belief that a vacation is something to be anticipated savored and then long remembered as one of life’s great adventures. 
Website: thejoyoftravel.ca

You can contact Joy at [email protected]

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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