Low loonie means travel surcharge
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Your next trip to a sun destination could cost an extra 25 to 35 dollars. Most Canadian tour operators have announced a surcharge to published fares to make up for losses due to the falling loonie. But with the temperature falling so far these days some people may see it as money well spent on an escape.
It has been a brutal winter and demand is soaring for sun vacations. Airlines say the falling loonie has hurt them because January is their busiest month and they’ve been absorbing the extra costs of the rather sudden currency fluctuation. The dollar has been hovering around 90 cents, even down to 89 cents Tuesday. Airlines say they have to start charging an extra fee, in many cases this week.
Others, though say the falling loonie is just an excuse for airlines to get more of our money.
Mel Fruitman with The Consumers’ Association of Canada says airlines are taking advantage of the increased demand brought on by a cold hard winter: “They figure, we can get away with it. Demand is so high because people are fed up with this winter, they’re willing to pay anything to get away. That really is taking advantage. nothing else other than greed.”
People on the street had this opinion: “It’s awful. it’s just a money grabbing business.” “They didn’t change it the other way around. When the loonie hadn’t dropped.”
Most airlines are on board with the surcharge, including Transat, Air Canada, and Sunwing who will charge 35 dollars extra per passenger on flights and vacation packages starting January 30th, until further notice.
Janine Chapman is with Sunwing Vacations: Typically, we are paying as we go, which means we are immediately impacted by what you’re seeing in terms of fluctuations on the dollar.”
Westjet might be the only Canadian tour operator that is not imposing a currency surcharge, and Westjet says that’s because it always includes currency fluctuations as part of its base price. That’s part of the reason vacation packages constantly change in price. If the cost of the package goes up, so does the price of the vacation.
Janine says: “Regardless of how we do it, customers are going to have to be impacted. We have to pass on those costs for future sales.”
“The dollar has dropped so fast so quickly, and pennies count to airlines. I don’t really blame them.” said one prospective traveller.
Sunwing says you just have to compare prices to see that there are still good deals even with the surcharge although travelling to hot places at this time of year is always more expensive. She also said international hotels typically give Canadians better prices, because we tend to shop around for the best price.
