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Choosing an East Coast getaway for your vacation rather than the U.S., and wondering about the costs involved? That's the price you'll pay.

Soaring domestic travel costs in Canada are causing financial strain, as high prices for flights, car rentals, and accommodations are compelling some travelers to adjust or end their vacation plans and consider staying local instead.

Visiting the East Coast for a getaway this year instead of the U.S.? Prepare for a higher price tag
Visiting the East Coast for a getaway this year instead of the U.S.? Prepare for a higher price tag

Choosing an East Coast getaway for your vacation rather than the U.S., and wondering about the costs involved? That's the price you'll pay.

Travelling within Canada has become more expensive compared to some international destinations, with higher accommodation costs, expensive domestic flights, and substantial government-imposed taxes and fees on air travel being the main contributing factors.

Natasha Beitman Brener, a lawyer in Kingston, Ont., had planned a three-week vacation to Canada's East Coast in September 2024, but the high prices for accommodation and flights led her to choose more budget-conscious options. Beitman Brener spent about six months planning the trip, considering various options in Prince Edward Island, Nova Scotia, and New Brunswick. She eventually decided to spend two nights at a boutique hotel in her hometown due to the high costs.

Alick Tsui, a St. John's, N.L., resident, recently took a five-day, two-person trip to Port Rexton, N.L., which cost about $3,000. Tsui is avoiding spending his dollars in the United States due to the ongoing trade war and comments about annexing Canada by U.S. President Donald Trump.

Beitman Brener and her husband are planning a mother-daughter vacation this month, aiming to travel within Canada on a budget of $3,000 for four nights and five days. They are also avoiding travelling to the United States.

According to Richard Powers, associate professor at University of Toronto's Joseph L. Rotman School of Management, the high travel costs within Canada can be attributed to a lack of competition among airline services and the fallout from COVID-19. The limited supply of affordable lodging also pushes prices high.

Individual round trip flights from Toronto to Halifax for the week of Aug. 18 -23 range from around $700 for Flair Airlines to nearly $1,700 for WestJet. The cost of a round trip flight to Charlottetown ranges between $1,500 and $3,000 on Air Canada. The cost of a round trip flight to St. John's ranges from about $1,200 via Air Canada to $2,500 via Air Transat.

Vehicle rental for five days in Halifax, St. John's, and Charlottetown ranges from an average of $1,500 for an SUV to $1,000 for a sedan. Beitman Brener and her husband rented a recreational vehicle in Montreal for approximately $6,000.

Restaurant bills in Canada add up due to the tipping culture that adds 15 to 20% for each meal, as stated by Richard Powers. The total cost of the trip, including campground parking fees, gasoline, groceries, park passes, a round of golf, and a couple of dinners out, was approximately $15,000.

These cost factors have influenced Canadian vacation plans by increasing the financial barrier for domestic trips despite a strong national preference to travel within Canada. They have also encouraged alternative lodging options like home-swapping platforms that eliminate nightly fees, with 28 percent of Canadians open to using them.

While some recent data indicates slight drops in average domestic airfare than last year, overall, Canadians still face higher per-trip costs on average domestically compared to international travel to certain countries. These high costs have led many Canadians to reconsider their vacation plans, often opting for more creative, cost-saving travel methods.

  1. Despite the high costs associated with domestic travel within Canada, such as expensive domestic flights and accommodation, Natasha Beitman Brener and her husband are planning a mother-daughter vacation this month, aiming to travel within Canada on a budget of $3,000 for four nights and five days, avoiding the United States.
  2. Acknowledging the substantial costs during travels within Canada, individual round trip flights from Toronto to Halifax for the week of Aug. 18 -23 range from around $700 for Flair Airlines to nearly $1,700 for WestJet, making it more cost-effective for some Canadians to consider alternative lodging options like home-swapping platforms that eliminate nightly fees, with 28 percent of Canadians open to using them.

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