Despite fear of the delta variant of the virus, a trend reported by suppliers and destinations speaking to Open Jaw is that travellers will not be put off any longer. Holiday bookings are increasing on both sides of the border, and that means supply is tightening for prime product and prices are rising even higher than pre-pandemic levels.
The Wall Street Journal reports on this trend, saying “Prices and bookings are already moving in an echo of the broader global supply-chain issues affecting consumers.”
The surge starts in time for American Thanksgiving. Jamie Lane, vice president of research at analytics firm AirDNA, told WSJ that bookings that week are already over one-third higher than for Thanksgiving week in NOV 2019.
And it continues into Christmas. Data from short-term rental-property management platform Guesty reveals that the average nightly rate for Christmas 2021 is USD $599 - way over the $332 average nightly rate for the same period in 2019.
But the big picture is a bit more complicated. Some of the increase in average spend is due to pent-up desire - and budget - to travel, with a corresponding inclination to splurge. Others see missed family gatherings driving group bookings that favour larger - and more expensive - accommodations.
Availability is being affected by COVID rules that see some destinations accept different nationalities as visitors, and have different entry regulations for arrivals from different countries that can dictate where some people giving up turkey in favour of the beach will travel.
Cue the Travel Advisor Consultation
Some travellers are drawn to destinations that have few entry restrictions for the ease of their travel. Others want to spend their holidays in destinations with tighter restrictions for ease of mind. It’s a variable that highlights the importance of advisors’ consultation process with travel clients, since the answer to that one question can change holiday plans.
While many Canadian operators are still touting high-value offers to get Canadians to book sun destinations this fall and winter, Americans’ eagerness to travel may well impact availability and pricing for key dates for Canadians.
Expedia.com reveals Mexico’s winter playgrounds - Cancun, Playa del Carmen and Tulum - are top destinations for American Thanksgiving and Christmas bookings.
On top of lift and accommodation supply and pricing, there’s also an historic crunch on rental cars. Fleets have reportedly experienced serious shortages for months, a situation that a surge in holiday travel will not lessen.
Neil Abrams, president of Abrams Consulting Group, a car-rental consulting firm told WSJ, “Be prepared for limited availability, especially during the holiday period, and high prices, prices that perhaps never have been experienced before.”
The takeaway for travel advisors is to make sure their clients get the message that if they hope to get away over the holidays and into the New Year, they can’t delay booking any longer to have choices of dates, destinations and prices.
