Luxury is a prime goal for Canadian travelers, according to a recent survey conducted on behalf of American Express Canada and Starwood Hotels & Resorts by Angus Reid Public Opinion. In fact, more than 25% would stay home rather than book a stay at a budget hotel.

On the other hand, 96% said that budget is a major concern when it comes to planning a trip. This makes affordable luxury a key objective; 88% say they look for ways to make their trips luxurious, yet affordable.

The survey found that most Canadians (82%) feel that the hotel they stay in is important and impacts the enjoyment of their trip, and 39% said excellent service is the key ingredient in luxury.  Fortunately, Canadian agents generally are able to give their clients what they need.

Regarding destinations, most Canadians chose places rich with history such as Italy or Greece (42%) over tropical getaways such as Hawaii and the Maldives (32%) or cities with a lot of action like New York or Las Vegas (7%). But nearly one-fifth (19%) indicated that the place is less important than the luxury experience, and said their dream destination is "anywhere, as long as I'm traveling in style."

Regional Preferences

There were also some intriguing regional differences.

Respondents from Quebec are most likely to consider quality of food to be what makes a trip most luxurious (46%). Only 26% of Ontarians and 19% of Albertans agree.

Albertans go on weekend getaways more than the rest of the country, with 39% opting to do so several times a year. Atlantic Canadians are least likely to go on a weekend getaway, with 77% stating they never or rarely go on one. Ontarians fare just above average with 32 per cent of respondents going on weekend getaways several times a year.

More than 1/3 of Quebec residents (37%) would prefer not to travel at all than stay at a budget hotel. This is contrast with Albertans (18%) and British Columbians (19%) who are less likely to limit their travel for this reason.

Finding Affordable Luxury

How do travel agents satisfy their clients’ desire for luxury while not breaking their budgets? In speaking with Canadian travel agents, TMR found that package pricing, particularly to the Caribbean and Mexico, enables them to sell four and five star accommodations at surprisingly affordable prices.

“We’re very spoiled here in Canada, said Jane Blowes of SWT Blowes Travel & Cruises Centres Inc. in Ontario, Canada. “Most of our people fly south in the winter. There are some very very good deals in five star resorts and they are very inexpensive… especially in Cuba, the Dominican Republic and even Mexico, she noted.

Blowes noted that agents don’t like to put clients into three star resorts in the islands because they know they will get complaints. “They do want value for their money. And to date we can get them a package price with air and a luxury hotel very reasonably.”

However, when clients are going on a car trip, the same standards do not necessarily apply, she said, noting that clients are likely to stop in a Motel Six rather than a Hilton to save $100.

Blowes attributed the phenomenon to the fact that there is more capacity than demand. “The tour operators have created the monster and until they cut capacity, it will be there.

However, as Jackie Johnson, executive vice president of Cruise Express pointed out, “There have long been packages that offer an overall savings over purchasing the individual components of a trip separately and today we see this not only with mass market brands but also with luxury level brands.” 

Agreeing with Blowes, she said that allowing a client to base a decision on price rather than the vacation experience was a dangerous road to go down. “Consumers are more conscious of what they are spending but they are still willing to invest in a luxury level experience.

The key, said Johnson: “Give consumers the product and experience they seek with the assurance they have the best buy.”