Affordable family vacations seem harder to find these days with the fluctuation of the Canadian dollar. Whether you’re dreaming of a bucket-list trip abroad or a last-minute weekend getaway, budgeting can be less painful with a few smart strategies. You can still find great deals if you’re willing to do some homework and make that part of the adventure. Here’s how to save on vacations.
How much is the Canadian dollar worth?
The Canadian dollar has hovered around USD$0.70 since late November 2024, affected by a wide range of factors, including a stronger U.S. dollar, diverging policy rates here and down south, and the ongoing threat of a tariff war.
This uncertainty is making many consumers wary when planning vacations to the United States, notes Mike Gomes, a Certified Financial Planner (CFP) at Team Up Planning Group in Vaughan, Ont. “It’s basically 70 cents on the dollar, so this has been a hot topic with a lot of my snowbird clients travelling down south to the U.S. It’s definitely had an impact.”
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How to save for a family vacation
Planning a vacation that’s months or even a year or more in the future? Pay for your trip ahead of time with strategies you’d apply to other short-term savings goals, says Gomes.
First, map out your travel expenses by estimating the cost of flights, lodging, meals, activities and tipping. Factor in travel insurance if your employment benefits don’t cover you and your family. “Spending time in the planning phase helps give you some clarity on what the trip may cost,” says Gomes.
Next, break down the costs into manageable monthly savings goals. Let’s say you’re planning a Caribbean cruise or a trip to the new Epic Universe theme park in Orlando for a family of four that will cost $10,000. That means setting aside $833 each month over one year, or $416 monthly for two years, to reach that goal.
Gomes suggests taking the pay-yourself-first approach. “Once you know what it’ll cost monthly, see how much excess cashflow you may have that you can save. If it’s within that budget, you’ll know you’ll reach that goal,” he explains. If that monthly goal is beyond what you can put aside, you’ll either have to cut back on spending to find extra travel savings or delay your trip until you save up the funds.
Use a tax-free savings account (TFSA) or another short-term investment option as a savings vehicle, Gomes advises. “If travel is coming up within 12 months, I wouldn’t invest it in anything aggressive or in the market,” he says. Instead, a high-interest savings account or a one-year guaranteed investment certificate (GIC) could be a good option. With these financial products, you won’t have to deal with a potential investment loss, on top of currency fluctuations.
For extra peace of mind, start planning early so you can purchase parts of your vacation in advance, suggests personal finance expert Rubina Ahmed-Haq.
“I like buying things over time: Pay off your flights, then book your hotel and pay that off, so all you’re left with is your food and what you’re going to be doing,” she says. “It can help with the budgeting and cash flow aspect and feel less overwhelming trying to make this trip happen.”
Resist the temptation of slapping the entire vacation on your credit card, warns Gomes. “Look at the interest rate your credit card is going to charge you and factor that into the cost. If it’s a $10,000 trip and your interest rate will be 20%, that’s a $12,000 trip.”
Do your homework to save on vacation spending
Speaking at the recent Travel & Adventure Show in New York, Russell Hannon, the Calgary-based author of Stop Dreaming…Start Traveling: The Ultimate Guide to Traveling More & Spending Less (Break the Travel Barrier, 2015), shared easy ways to save money before and while travelling. “When you’re evaluating which credit card offers the best rewards, choose the three benefits that are most important to you,” Hannon told the audience.
Want to avoid dreaded checked baggage fees? Get a credit card that offers a free checked-bag benefit, he suggested. (Examples include the TD Aeroplan Visa Infinite and WestJet RBC World Elite Mastercard.) Other cards offer perks like a large sign-up bonus, companion flight passes or extra points you can redeem towards future travel. Since I hate paying that pesky 2.5% foreign transaction fee for purchases made while travelling outside Canada, I got a Scotiabank Passport Visa Infinite card, which waives that fee. Bonus: It also includes six airport lounge access passes. (Find out which credit card allows you to get up to eight free checked bags.)
If you’re willing and able to travel at the last minute, Hannon says there are scores of deals on Vacations To Go for cruises, tours and more. Other websites he relies on when planning trips include:
- Hopper and Kiwi, which tell you when to book flights or hotels using predictive analytics
- Pruvo and Google Flights, which track your hotel reservation and desired flight, respectively, and alert you if prices drop
- Airport Parking Reservations, which finds the cheapest parking rates near major airports in Canada and the U.S.
- University Rooms, which lists affordable dorm rooms for rent in more than 100 cities worldwide
- Free Campsites, which lists free sites around the world for tent, car or RV camping
Hannon recommends booking an economy rental car because there’s often low inventory and you could be upgraded to the next category for free. He also likes popping into the local Costco warehouse at his travel destination to pick up discounted gift cards for restaurants and attractions. For example, you could pay $79 for $100 worth of spa visits, dining, theme park admissions and live events.
Look for discounted passes for popular attractions
Another way to save at your destination: passes that provide substantial discounts to attractions (and often let you skip long ticket lines). Sightseeing passes across North America and in Europe—such as CityPass, Go City or the Copenhagen Card—can provide great value, but do the math to determine if they’re worth it for you. Compare the cost of the pass to the combined price of individual tickets for the sights you’re interested in. In most cases, you’ll save around 30% or more if you’re staying two days or longer. Many passes offer additional benefits like skipping lines or unlimited transportation around the city, something my family loved while in Copenhagen.
However, attraction passes aren’t the right choice for everyone, cautions Ahmed-Haq. “My family does not like to move around a lot on holiday, so buying a CityPass for my kids is useless because we’ll go into two things and then they’re tired,” she says. “If you’re going to go to five or six things, then passes make sense.”
Take advantage of special offers for Canadian travellers
Want to book a vacation at a resort in the U.S. but you’re worried Canuck bucks won’t get you very far? Many border states take Canadian dollars at par for everything from hotel rooms to ski lift tickets, lessons and gear rental.
For example, in Vermont, Jay Peak takes Canadian cash—not credit cards—at par, while Smugglers’ Notch provides a 30% lodging discount to Canadian guests. Burke Mountain also sells lift tickets at par. In Wyoming, Jackson Hole Resort Lodging also accepts our dollars at par, and it throws in discounted lift tickets and flight credits. Sunday River in Maine posts discounted rates to Canadians to help make up for our low loonie, and on Thursdays and Fridays, Bottineau Winter Park in North Dakota takes Canadian funds at par for lift tickets, gear rentals and tubing passes.
You can save hundreds of dollars per skier by buying a season’s pass that includes multiple mountains. For example, the L’Est Go pass saves up to 38% off lift tickets at four mountains in Quebec’s Eastern Townships. Purchasing an Epic Pass from March through early December grants you unlimited access to more than 80 Vail-owned ski resorts across North America, Europe, Asia and Australia—including Whistler Blackcomb, Stowe and Vail—plus 20% off lessons, rentals, food and lodging. Even if you only take one ski vacation where your pass is valid, it’s cheaper than buying day tickets while you’re there.
Some mountains, including Banff Sunshine Village, sell afternoon-only adult lift tickets at a 26% discount—ideal for skiers who want to sleep in (check its website for youth and senior discounts, too). Others, like SilverStar in British Columbia, up the value by including access to tubing, fat biking, skating and Nordic skiing in the price of their lift ticket.
If you plan on visiting a resort outside your own city, Ahmed-Haq suggests joining local Facebook groups run by the resort or its fans. “You’ll get on-the-ground tips you may not find in a tourist pamphlet, like ‘You can get breakfast super cheap here on Tuesday mornings,’ and you can also post questions like, ‘We’re going in February—any deals you can tell us about?’”
Affordable family vacations closer to home
Want to spend your vacation dollars in Canada this year? Head to “dupe destinations”—places that feel like more expensive spots.
For example, instead of going to Arizona for jaw-dropping canyon views, check out British Columbia’s Stikine River Provincial Park, also known as “The Grand Canyon of the North” thanks to its 80-kilometre canyon carved by the Stikine River. Can’t afford Hawaii? Tribune Bay Beach on British Columbia’s Hornby Island has similar turquoise waters and pristine sandy beaches.
Instead of spending thousands on a European vacation, visit la belle province. Quebec City makes visitors feel like they’re in Geneva, Switzerland, according to a recent Expedia trend report. And according to travel company Tours4fun, Banff doubles for Zermatt, Switzerland, while saving travellers up to 30% on accommodations.
If Disney World or Universal Studios is beyond your budget this year, take your thrill-seeking kids to Canada’s Wonderland in Vaughan, Ont. At the country’s largest theme park, you’ll find more than 200 attractions including a 20-acre water park and 18 roller-coasters plus a new one, AlpenFury, launching this year—it boasts the most inversions in the world for a launch coaster.
When you make smart choices, planning and saving for a vacation doesn’t have to be stressful—even in this economy. By setting achievable goals and planning in advance, you’ll have a fun, memorable trip without the financial headaches.
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