Exploring Canada’s Travel Costs: A Domestic Dilemma

This year, I’m marking a milestone birthday alongside several friends, and we explored the idea of a short Canadian getaway centred around a spa experience and elevated dining. What stood out was the pricing—on a per-night basis, excluding airfare, it was comparable to spending several days at a sun destination. It felt strange to have to pay more to vacation in our own country.

With shifting geopolitical conditions influencing travel decisions, many Canadians are naturally looking closer to home, making domestic travel an increasingly compelling option for vacation planning. Except, for Canadian travel advisors, selling domestic travel continues to present a complex value equation that’s shaped by price, client expectations, and the abundance of all-inclusive packages.

According to Louise Gardiner, CTM, Traveltrend Navigator at Wired for Travel, today’s clients are more informed and price-aware than ever. “From their perspective, it’s not a fair fight,” she says. “The all-inclusive option includes flights, transfers, meals, drinks, and predictability, while the alternative often feels like a series of separate, expensive decisions.”

While advisors recognize that domestic and all-inclusive vacations offer fundamentally different experiences, clients continue to compare them, often from the very first conversation.

“Clients are already leaning toward Mexico or the Dominican Republic before we even start pricing,” says Crystal Mitton, Crystal Clear Vacations.

There’s a perception that Canada is more expensive and that’s often reinforced once quotes are built.

Across the board, advisors point to total trip cost as the primary barrier. Airfare remains the single biggest challenge, frequently consuming a disproportionate share of the budget.

“Complaints are mainly about costs of flights and meals. Resorts are the last thing they complain about,” says Coreen Doucett, TTAND. “How come it costs me +$1 K to fly from YYC to YYT, but I can fly from YYC to LGW for much less? Why is the HST so high on flights? Why is a non-Canadian able to claim for HST out of county but I cannot claim as an out of province?”

“When airfare takes up such a large portion of the spend, it limits what clients are willing to invest in accommodations and experiences,” says Gardiner. “That ultimately impacts buying decisions.”

Mitten echoes this: “Flights are expensive, hotels are expensive, and then nothing is really included. By the time clients add meals, activities, and even parking or car rentals, it adds up quickly.”

For Sarah Boville, of Barefoot Travel, the comparison often doesn’t even happen. “Many clients already assume Canada will be more expensive, so they start by looking at sun destinations where everything is bundled and feels more affordable.”

A common concern among advisors is the lack of structured, ready-to-sell domestic product.

“Unlike international destinations, Canada does not have a strong, standardized packaging infrastructure,” says Gardiner. “Building a domestic itinerary often requires stitching together multiple components, which increases both cost and complexity.”

“With all-inclusive, everything is bundled; it’s easy to quote, and clients understand exactly what they’re getting,” says Mitten. “With Canadian travel, it’s more pieced together, which takes more time and doesn’t always feel as straightforward.”

Boville adds that while there are strong individual experiences available, there are fewer commissionable, packaged options compared to international markets, making domestic travel harder to promote and sell at scale.

Beyond pricing, availability remains a significant constraint. Peak travel periods – particularly summer and fall, see inventory tighten quickly, driving rates higher and limiting flexibility.

“Accommodation availability and pricing escalate quickly in peak seasons,” says Gardiner. “Combined with already high airfares, it becomes very difficult for Canada to compete on price.”

For advisors in regions like Atlantic Canada, these challenges are even more pronounced. “Airfare can be unpredictable and very expensive depending on timing,” says Mitten. “It’s often the deciding factor—once clients see the cost, the conversation shifts right away.”

Despite these challenges, advisors agree that Canada delivers exceptional travel experiences, particularly in nature-based and experiential segments.

“Destinations like the Rockies, Atlantic Canada, and Northern Ontario offer something you simply cannot replicate elsewhere,” says Gardiner.

However, the advisors we spoke with all say the issue is not product quality; it’s perceived value.

“Canada succeeds in experiential travel; small group journeys, rail, culinary, and cultural immersion,” Gardiner explains. “Where it struggles is competing on price and simplicity.”

Clients may recognize the uniqueness of a Canadian itinerary, but when faced with comparable or lower pricing for a sun destination that includes meals, drinks, and guaranteed sunny weather, the decision often shifts.

While government and tourism board support in destinations like Mexico and the Dominican Republic plays a role in pricing competitiveness, advisors point to deeper structural issues within Canada.

“Canada lacks the scale, airline competition, and packaging infrastructure that make international all-inclusive travel so cost-effective,” says Gardiner. “When you combine higher domestic airfares, fragmented product, and shorter operating seasons, it becomes very difficult to compete on price. There is a significant gap in ready-to-sell, competitively priced domestic packages,” Gardiner adds.

“Advisors can curate exceptional experiences, but it’s far more time-intensive and often less commercially viable.”

Boville agrees that expanding packaged, inclusive Canadian products would make a meaningful difference. “More bundled options would help clients see clearer value and make it easier for advisors to promote domestic travel.”

Doucett says there aren’t enough packaged, commissionable options unfortunately. “And the time I spend collecting reduces my want of booking my clients.”

“We are large beautiful country, she says. “Getting around almost forces a car for easier access once in destination. I’ve found since COVID, it’s been an eye opener for people and many just want to enjoy our country, and are quite aware of the costs. As I have travelled across the country more than once, I am great at sharing cost cutting ideas in ‘higher demand’ areas and great places to visit with tighter pursestring.”

For Canada to gain greater share of our travellers, suppliers and tourism partners may need to focus on building more structured, commissionable, and competitively priced domestic programs, ones that align with how today’s clients shop, compare, and ultimately book.

Until then, advisors will continue to navigate a delicate balance: showcasing the uniqueness of Canadian travel with offering a value that’s hard to beat.