Cheaper airfares, but higher hotel costs and added tourist fees.
As we look to a new year filled with travel opportunities, leading online travel agency CheapOair.ca is sharing their annual look ahead at some of the top developments that Canadian travellers can expect for 2024.
This year was not without its fair share of successes and issues, despite continuing inflation, fluctuating fuel costs, and global instability. While global inflation is expected to fall in 2024, CheapOair.ca anticipates that the new year will still see further surprises and challenges for travellers. Here are some of the top changes that Canadians should be aware of.
A Drop In Airfare
Despite continuing inflation, Statistics Canada recently reported that Canadian airfare has decreased during 2023, as airline demand aligns with capacity. In its Consumer Price Index (CPI), the agency reported that the price of air transportation dropped 19.4% last month compared with October 2022. The figure follows a roughly 21% year-over-year drop in September and a 20% decrease in August.
The results also showed airfares declined 4% on a monthly basis in October 2023, when they typically rise ahead of the holiday season, particularly with domestic travel. Can this decrease maintain through 2024?
“While it is a challenge to accurately predict what airfares will be in 2024, this downward trend bodes well for cost-conscious Canadians,” said Daniel Hayter, Senior Product Manager for CheapOair.ca.
But An Increase in Security Fees
Despite the positive outlook on airfare, the Canadian government announced a series of airport security improvements for 2024 at a cost to travellers by way of a 33% increase. Starting in May 2024, the increased Air Travel Security Charge on a one-way ticket within Canada will increase to $9.94, on a flight to the U.S. to $16.89, and on an overseas trip to $34.42.
“This increase for the Canadian Air Transport Security Authority (CATSA) is being done to maintain and increase its level of service in airport screening and overall security,” added Daniel. “It’s important to note that this is the first increase in security since 2010.”
The Growth of Tourist Fees?
Dealing with the struggle of over-tourism brought on by ‘revenge travel’, several popular destinations have announced that tourists will now need to pay a ‘Tourist Tax’.
While a number of North American destinations currently charge a local fee to support local municipalities with services and infrastructure, there is expected to be an increase for 2024. Popular international destinations such as Barcelona and Thailand have already introduced this fee with more following suit in 2024.
“For those planning on a budget, it’s best to do the proper research to confirm the destination tourist fee in advance,” said Daniel.
Pay More To Stay
According to the recent American Express Global Business Travel report, hotel rates are expected to rise across Canada to bring it more in line with inflation fluctuations and staffing issues, despite 2022 and 2023 seeing similar increases due to ‘revenge travel’.
While global inflation is set to fall in 2024, it will continue to impact hotel costs, according to the report. A key factor here is staffing, with hotel wages in North America at record levels.
“Unfortunately, this may affect cost-conscious travellers into minimizing their stays by one night or they may opt more affordable accommodations,” noted Daniel.
Mandatory European Travel Visa Requirements
Originally planned for 2023 but now moved to late 2024/early 2025, it was announced by the European Union (EU) that all Canadian citizens planning to board any aircraft, sea carrier, or coach vehicle headed for Europe – and even those passing through or connecting through Europe enroute to a secondary destination – will be required to have a European Travel Information and Authorisation System (ETIAS) visa.
ETIAS is being implemented to pre-screen visa-exempt travellers travelling to any of the over 22 Schengen member destinations including France, Germany, Spain and Italy, and four non-European Union countries: Iceland, Liechtenstein, Norway, and Switzerland. The decision has received unanimous support from all the EU member countries. Further information on ETIAS and the application can be found at www.etiasvisa.com/etias-form-application
“What this means for Canadians is that whether you are planning to travel to or even connect through Europe, you will need to apply for an ETIAS visa and go through the security screening process in advance,” said Daniel. “While this may seem like an obstacle for travels and planners, it is important to note that this will be mandatory.”
