Tips for travelling south with a lower loonie

TORONTO — The plummeting Canadian dollar may change the way we travel this winter, especially if those travel plans include a trip to the United States.

“A lot of people will reconsider how they winter in the U.S.,” said Marc Smith, a professional traveller who runs 30DayAdventures.ca.

He recently researched what Canadians could do to stretch their dollar this winter, and gave Global News his tips for making every loonie count.

It takes some planning ahead, but Smith advises buying U.S. currency throughout the year — a strategy that smoothes out fluctuations.

“Split it in equal payments, ” said Smith, suggesting travellers put away what they think they will need in monthly increments.

He also recommends Canadians open a U.S. dollar bank account so they can have easy access to funds when they’re away. And where possible, he says travellers should use cash rather than a conventional credit card on purchases.

READ MORE: 4 tips to stretch your dollar when travelling abroad

“Cash always beats a credit card, because 90 per cent of credit cards charge a 2.5 per cent foreign transaction fee on top of the exchange rate,” says Smith. Some credit cards, like the Marriott Visa, are useful for U.S. travel because the transaction fee is waived.

When it comes to getting the best exchange rates, he says banks typically are better than “on the street” exchange houses, credit union rates are usually more favourable than bank rates and one exchange service in Vancouver came out best of all in his research.

“The Vancouver Bullion and Currency Exchange — where you can do business in person and online, had the best exchange rate,” said Smith, who says the company can transact exchanges remotely and ship you American funds for a $15 service fee which he says is a great value.

Finally, Smith says Canadian travellers ought to consider a $25 membership in the Canadian Snowbird Association, which will allow members to pay into a pooled fund where U.S. dollars can be bought at a preferred rate each month.

“It all takes planning,” says Smith. “Nothing in the world is free: if you want to save money, you’re going to have to put some effort and time into it.”