As cost of living rises, do Canadians still plan on travelling?

As the cost of living continues to rise across the country, are Canadians thinking twice about travelling this year as the summer months approach?

Daryl Silver from Continental Travel Group in Winnipeg says Canadians are paying more than usual to travel this summer.

“I think people want to treat themselves because they haven’t been going anywhere for a couple of years,” said Silver. “They’re maybe spending 20 per cent more this year than they would in previous years.”

But besides the increase in costs, he says they are seeing robust sales for travel this summer.

“People travelling within Canada, to the United States. A lot of people travel to Europe. A lot of people spending more than they normally would on a trip, but what we can see, it’s still very robust and I think that will last this year and probably into next and maybe it will normalize after that.”

According to a new Leger survey, conducted for the Tire and Rubber Association of Canada, 66 per cent of 1,500 drivers surveyed say financial pressures will likely force them to limit or cancel road trips this summer.

But the owner of Barrier Bay Resort in Manitoba’s Whiteshell Provincial Park says his resort is filling up fast for the summer.

“People are wanting to travel. A lot of them aren’t wanting to travel abroad. There was sort of a dip where everyone was going to Mexico and all of the nice warm places because they couldn’t for a few years, but we are seeing that coming back,” said D.J. Seales, owner of Barrier Bay Resort.

Dr. Barry Prentice from the University of Manitoba says he doesn’t believe the cost of living will go down anytime soon. He says a lot of firms and businesses lost money during the pandemic and are now trying to catch up to pre-pandemic levels.

“They had lost sales and had to take on extra debt, they’ve got to get it back somehow, so they’ve increased their prices and when everyone is increasing prices, it’s easier to get away with it,” explained Dr. Prentice.

As for when Canadians could see travel costs come down? Silver says it might be in a few years.

“This summer will likely be high and in 2024 and even in the winter of 2024, and then after that, I think you will start to see some normalization.”