A drop in the value of the Canadian dollar compared to last fall hasn’t dented this year’s winter vacation plans for many sun seekers, according to the country’s biggest tour operator.
Denis Pétrin, the head of finance for Montreal-based Transat A.T. Inc., which ships thousands of Canadians to Mexico, Cuba, the Dominican Republic and other sun destinations when temperatures start falling, said the tourism company has sold about a fifth of its “inventory” for the upcoming season.
“It’s not a bad start – it’s very early in the game – but the start is not so bad,” the executive said.
The bookings have arrived despite a 16.5 per cent drop in the value of the loonie compared to where it was last September, when it was trading at 91 cents U.S.
One Canadian dollar is now worth 76 cents U.S., dragged lower because of a slumping economy and a rising U.S. currency that’s riding high as that country’s economy powers up.
The dollar’s drop is forcing costs up, Pétrin said. But not by an amount that’s deterred travellers.
A $1,300 all-inclusive package has been raised to $1,350, for example, the executive said. “In our view, it’s not an amount that will make people travel less,” he said.
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Pétrin noted that Transat, which also operates European tours and focuses on transatlantic business during the summer months, has experienced a “horrible” year in that part of the world.
Turmoil in Greece as well as a wave of violence, from the Charlie Hebdo shootings in Paris in January to an attack by ISIS gunmen on beach tourists at the Tunisian seaside city of Sousse in June, disrupted and deterred travel demand, Pétrin said.
Still, Transat said it expects a strong rebound next year.
“Tourists tend to forget really, really fast,” the executive said. “Holidays are becoming sacred, customers are saying ‘I work so hard — I really, really need to travel.”
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