Loonie’s plunge makes sun vacations more expensive

As the loonie trades below 90 cents (U.S.), that vacation sun package will soon get a little pricier as some tour operators are adding a currency surcharge to recover costs.

Calling it a “significant depreciation” in the Canadian dollar, Air Transat said it will be adding a $35 currency surcharge per passenger on all packages and flight bookings for Florida and sun destinations, effective Jan. 27.

Spokeswoman Debbie Cabana said that prices on vacations down south are so competitive, with many costs including hotel rooms calculated in U.S. dollars, that the company has to impose the surcharge, given razor-thin profit margins of only 1 per cent.

She added that as travelers shop for packages, it will be included in the total price along with taxes and other fees.

Air Canada Vacations is also moving in the same direction, with a $35 surcharge per passenger on all new bookings, with departures starting Jan. 27, to destinations in the Caribbean, Mexico and the United States, said spokeswoman Manon Leblanc in an email.

Sunwing Vacations is also introducing $35 surcharge, beginning on Jan. 30, for all packages as well as flight-only deals.

“Passengers who booked their travel prior to the introduction of the surcharge will not be affected by the increase as Sunwing is absorbing the additional costs,” said Sunwing in a statement.

However, WestJet Vacations and Sunquest Vacations are bucking the move toward the new fees.

WestJet Vacations said it has no intention of imposing a currency surcharge on vacation package bookings.

“We believe the base price should reflect the true price of the package, and that the only taxes and fees charged should be those that are passed on to government and regulatory bodies, not used to offset cost increases,” said Tim Croyle, vice-president and general manager of WestJet Vacations, in a news release.