TORONTO, Jan. 14 /CNW/ - Canada's leading travel intelligence website www.TakeOffeh.com queried industry insiders about this winter's unprecedented sun vacation bargains. The consensus is that the deals will end.
Canadians have been so spoiled by low prices on sun vacations that we could be in for a big shock when the marketplace returns to more rational pricing.
According to Lawrence Elliot, Sunwing Vacations Group Vice President, rates for winter holidays this year are unprecedented. "I haven't seen prices like these in about a decade. It's absolutely incredible." The question is: How long can this situation last?
In order to predict how pricing will net out over the next year, it's important to understand why it's so cheap right now. Hotels in Mexico and the Caribbean have seen occupancy rates decline due to the absence of Americans and Europeans. To stimulate volume, they are passing deep discounts on to Canadian operators, which in turn are being passed on to consumers.
Andrew Dawson, Signature's Executive Vice President, says that once the rooms are snapped up, the rates go back up. "The hoteliers are being very pro-active in stimulating occupancy, but they won't extend the same deals any longer. After February, they need to retain margins right up until Easter. Many are already sold out."
As Elliott puts it: "Canadians are in for some serious sticker shock."
See the full report: http://www.takeoffeh.com/readarticle.php?section=whatsup-traveltattle
SOURCE TAKE OFF EH!
For further information: For further information: Nina Slawek, nina@TakeOffeh.com or (416) 926-8092