Canadians have long been pained with the reality that travelling around their own country could cost significantly more than taking an international trip. Flying between Toronto and Vancouver could cost a whole lot more than trips to tropical locations like Mexico. However, some new factors could lead to that all changing, with domestic flights becoming much cheaper as soon as this summer.
Due to the struggling Canadian dollar right now, economists are expecting a rise in domestic tourism this year. The loonie could continue to weaken as trade tension with the US rises, leaving Canadians staying home where their dollar stretches further.
“I think there may be a bit of a boost to the economy from staycations,” analyzes Jeremy Stretch of CIBC Capital Markets in a BNN report. “Of course, there’s always a benefit to any consumers staying home. I think in the context of the depreciation in the currency, I think we can and may well see further down drops towards the 75 cent US mark.”
Reports from many travel websites seem to agree with the predictions with many showing a rise in the price of international travels to destinations like Europe. At the same time, new low-cost carriers like WestJet’s Swoop have been bringing the price down on domestic flights.