For the past few years, Julia Wilson and her mother have planned an annual weekend trip to New York for her birthday in November, usually filled with dinner reservations and shopping.
But Wilson said this year's celebrations to mark his 28th birthday were somewhat boring. Like many Canadians who venture across the border, she said the exchange rate forces her to make budget-based decisions about how to spend her money.
“Since the U.S. dollar is so high for us Canadians these days, it didn't seem like there was much point for me to spend beyond necessities,” Wilson said.
“If I can take advantage of the sales at home in my own currency, I would much rather do that than just spend while traveling. »
Whether it's having to cut back on vacation spending or deciding to forgo a trip to the United States, it's a reality many travelers are facing this holiday season as the loonie continues to rise in value. to weaken.
The Canadian dollar has hovered around 70 US cents in recent weeks, a decline that has seen its value depreciate to its lowest level in almost five years.
With that in mind, Wilson said it wasn't worth shopping around as much on his trip this time around.
“In the past, there were a few stores in New York that I prioritized in terms of planning our routes,” she said.
“Because I knew things were so bloated, I didn’t really have the same desire to go visit them this year.”
A BMO survey this fall found that 79 per cent of Canadians planned to reduce their holiday spending this year, including vacation spending.
Nearly a third said the cost of international travel – including airfare, accommodation and gasoline – is now too high for their budget, while around 45 percent said travel are a lower priority in managing their daily expenses.
“(The cost of) things, as we all know, have increased. Factoring in the U.S. dollar, that means you'll need 40 percent more than you'd think if you were just comparing our dollars, said Gayle Ramsay, head of everyday banking and customer growth at BMO.
While the survey indicates Canadians plan to spend an average of more than $1,800 on travel this season, Ramsay said current conditions may force some to “find ways to save” in their budgets or even shorten their stays. .
“Maybe you don’t go to five-star restaurants every night,” she said.
“Maybe you're really planning to have a special night out and then you're looking for cheaper restaurants, or even some 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, save, then track your spending when you're on vacation,'” she said.
“That way you won’t have any big surprises when you get back.”
One segment of Canadian travelers that doesn't seem to be deterred by plans in the United States this season is the snowbird population – those who call warm destinations like Florida and Arizona home during the winter months.
The Canadian Snowbird Association said it expects most of its 115,000 members to temporarily settle in the U.S. Sun Belt this season, as they do every year.
“The snowbird market tends to be more resilient to currency fluctuations than the traditional travel market. These people tend to own homes in their winter destinations and have established connections within these communities as well,” said spokesperson Evan Rachkovsky.
“They've already invested a significant amount of money, in most cases, into maintaining these winter properties, so because of that, they usually end up traveling.”
Still, Rachkovsky said he expects many Canadian snowbirds will face tougher choices about how they spend their money compared to previous years.
“The best way for snowbirds to mitigate dollar weakness in these cases is to change their discretionary spending,” he said.
“So restaurant meals, golf games and other outings, those are always the first things to cut back in these situations where the dollar is impacted.”
Some might also choose to reduce the number of days spent in the South because of the cost of travel medical insurance, which depends on the length of the trip and can be “pretty exorbitant” in the United States, he said. added.
For those who are still establishing budgets for their upcoming trips, Wilson recommends trying to save money in areas such as transportation and other logistics.
Even though Ubers or taxis can get you to a location quickly, opting for more economical methods will ensure that there is money left over for fun experiences.
“Amenities are not necessarily the right choice because they might be more expensive overall,” she said.
This report by The Canadian Press was first published Dec. 13, 2024.
