When our Canadian Loonie falls to new lows your first thought may be that your travel budget just won’t stretch but remember that we’re lucky to live in Canada – a country the size of some continents! Canada has some of the world’s most exciting landscapes from soaring snow-capped mountains to lush forests, freshwater wonders and ocean coastlines, world-class cities and charming towns.
If you want adventure and to keep your travel costs down, plan your trip across Canada’s six time zones, 10 provinces and three territories – with your Loonies in hand. It’s exciting and accessible. But remember, you will need travel insurance.
Does the exchange rate really affect your travel plans?
Planning a trip involves more than just choosing a destination and packing your bags. One crucial factor that can significantly impact your travel budget is the exchange rate.
If you are planning to travel internationally, the effect of a ‘low Loonie’ has on exchange rates can have a real impact. The fluctuating Canadian dollar (CAD) can make international travel much more expensive. In 2025, the CAD is projected to remain relatively weak compared to the US dollar and Euro. This means that when you exchange your Canadian dollars for foreign currency, you might get less value, making everything from an all-inclusive travel package to accommodation to dining and activities more expensive abroad.
For instance, if the CAD to USD exchange rate is around 0.72, a trip to the United States could cost significantly more than a similar trip within Canada. The same applies to European destinations, where the CAD to EUR exchange rate is expected to hover around 0.68. These rates can add up quickly, impacting your overall travel budget.
Consider domestic travel flights instead
Your domestic flight will start and end in Canada, connecting you to provinces from coast to coast. You can cover large distances flying with a wide range of regional and national airlines that connect the country. Flying takes days off travel time – helping you make the most of your few days away from work – and offers so many advantages
- Cost Savings: By choosing to travel within Canada, you avoid the unfavorable exchange rates, and the additional costs associated with international travel. Domestic flights, accommodations, and activities are priced in CAD, providing more predictable and often more affordable expenses.
- More Options: Domestic flight capacity is set to jump nearly 10 per cent recently and this extra flight capacity north of the border has helped push down prices with fares on flights within Canada sitting 20 per cent lower year over year.
- Meaningful Live Experiences: Canada offers globally buzzed-about live sporting and music events to group scenes and solo trips for new travel experiences you can enjoy like an influencer.
- Discover Local Gems: Canada is home to some of the world’s most stunning landscapes and vibrant cities. From the majestic Rocky Mountains in Alberta to the charming coastal towns of the Maritimes, there’s no shortage of breathtaking destinations to explore. Plus, you can experience the diverse cultures and cuisines that make Canada unique and even fly to places inaccessible by road.
- Support Local Economy: Travelling domestically helps support local businesses and communities, which is especially important in the post-pandemic recovery period. Your travel dollars can contribute to the growth and sustainability of Canadian tourism.
- Convenience and Comfort: Domestic travel often involves shorter flights and fewer logistical hassles. There’s no need for passports, visas, or extensive travel insurance coverage for international health emergencies. This makes planning and enjoying your trip much more straightforward.
Don’t forget to protect yourself from the unexpected with travel insurance
Everybody knows that Canadians enjoy insurance coverage that is paid for by the government. However, that coverage does not follow you out of your home province. When you are planning your Canadian flight adventure, adequate travel insurance is the most valuable thing you can pack.
Whether you are travelling alone, with your significant other or your family, you and your loved ones can rest easy knowing that your trip is covered. Packages are available for Emergency Medical coverage for every member of your family. You can also purchase All-Inclusive insurance coverage for Emergency Medical, Trip Cancellation and Interruption, Baggage Loss, Damage and Delay, and Flight and Travel Accidents.
Here’s more good news. When you travel within Canada, there are special travel insurance plans available that are very budget friendly.
Check out Manulife’s Single-Trip Emergency Medical Travel Insurance Plan within Canada. This plan for Canadians travelling out-of-province helps protect you against the cost of unexpected emergencies that may occur during your trip – costs only marginally covered by your provincial health insurance plan — like
- Health services
- Hospital and physician services
- Paramedical services
- Emergency dental treatment
- Transportation
- Ambulance
- Emergency medical return home
- Visit to bedside if travelling alone
- Return home of children in care of insured, travel companion, pet, vehicle
- Return of excess baggage
- Additional protection
- Hospital allowance
- Extra meal, hotel, childcare and phone call costs
- Expenses related to death
You are covered for up to $10 million in emergency medical benefits, and you can apply at any age if you are a Canadian resident covered by a Canadian provincial or territorial health insurance plan. There are no medical questions if you are under age 60.
The best news is that the Travel Canada Emergency Medical plan is offered at 50% off the regular Single-Trip Emergency Medical rates. That’s right. If your entire trip is within Canada, premiums are half the cost you’d pay if you were travelling outside Canada for the same length of time. And there are ways to save: family coverage provides savings save when two or three generations (under age 60) travel together or save 5% when you travel with a companion.
This is the perfect time to discover Canada
While the allure of international travel is undeniable, 2025 might be the perfect year to explore the wonders of Canada. By flying domestically, you can enjoy a memorable and budget-friendly adventure without the financial strain of unfavorable exchange rates.
If you need help choosing or buying your travel insurance, go online or call us at 1-800-667-0429 or 416-601-0429 during our regular business hours, or email us at [email protected].
