TORONTO, ONTARIO — (Marketwire) — 11/02/11 — Despite lingering uncertainty over the state of the economy, Canadians continue to travel. According to a new survey released today by BMO Bank of Montreal, 61 per cent of Canadians will take a fall or winter holiday this year (compared to 79 per cent who vacationed in the summer). Survey respondents say current economic volatility has not affected their vacation plans.
“Tourism generated about $30 billion for the Canadian economy in 2010, or 2 per cent of GDP, and about 4 per cent of the labour market has a direct link to the tourism industry,” says BMO economist Robert Kavcic. “So, if travel plans can hold up despite economic uncertainty and lower consumer confidence, it would certainly be welcome news for the Canadian economy.”
In addition, one in five is taking advantage of a strong Canadian dollar to head out of country; 14 per cent say they are heading to the United States, while 5 per cent plan to vacation outside Canada or the U.S.
The study, conducted by Leger Marketing, also revealed that the younger you are, the more likely you are to travel out of country:
Strong Canadian dollar fuelled travel outside Canada in first half of year
Travel within the country remains the most popular with Canadians. However, the strength of the Canadian loonie, which has been close to or over parity with the U.S. dollar for the past year, has led to more trips outside Canada. Outbound travel by Canadians grew by 5.5 per cent year to date to June 2011, with most of that growth comprising travel to the United States.
Canadians watching their travel budgets
In a survey conducted in May, Canadians told BMO that affordability was a key consideration when they made vacation plans. Yet in BMO-s follow-up fall/winter travel survey, only 13 per cent of those polled said they will use loyalty rewards to lower vacation costs.
“Canadian consumers are increasingly more knowledgeable about the value of rewards programs. In fact, rewards programs are the number-one determinant in the choice of a credit card,” said Su McVey, VP, Customer Communications & Marketing, BMO Bank of Montreal. “In today-s economic environment, I would encourage every Canadian vacationer to take full advantage of their travel-related rewards to reduce their holiday expenses.”
BMO-s Fall Travel survey revealed that those travelling this season with incomes greater than $100,000 were the most likely (19 per cent) to use travel rewards to lower vacation costs.
“Extra features — often included with premium cards like the BMO World Elite MasterCard — such as trip interruption and cancellation insurance, travel medical insurance, rental car collision waivers and airport VIP lounge passes, can also substantially reduce travel costs. So, it is important to know the benefits of your credit card. If you-re not sure, call your bank or check online for confirmation.”
Unforeseen events like an accident or illness, or an emergency back home, can be extremely expensive and quickly eat up savings if travellers do not have the appropriate travel insurance coverage.
BMO-s 2011 Fall/Winter Travel Survey was conducted from September 6-8, 2011, by Leger Marketing. The sample was 1506 Canadians, 18 years or older. The margin of error is plus or minus 2.5 per cent.
Backgrounder:
Tips to Maximize Loyalty Rewards
Loyalty programs are the number-one determinant for consumers when selecting a credit card. Here are a few tips to maximize collection of those loyalty rewards.
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