Overly-strong US dollar eliminating many cruisers

[OceanTraveller4ever]

WOW...we are booked on the Westie for a big 21 day repo...

 

We did book early, and have a big saving. So looking forward to it :)

 

As I indicated on other threads, it is so special, as it will be the last for a while cause of the US$

[sail7seas]

the currency is Canadian dollars Sail.

 

Thanks.

That's a considerable difference in price. Not something to shrug off.

 

[xlxo]

For us, it is negatively affecting the value proposition. Right now, we are looking at the US dollar costing $1.40 CAD. Paying 40% more for hotels, transportation, meals, specialty restaurants, HSC, beverages, excursions and everything else and the per Diem costs start to escalate.

Many of us are paying on credit cards.... some need to add 3.5% on top of the 40% penalty...

 

https://ca.finance.yahoo.com/q/bc?s=USDCAD=X&t=5d

 

Need to add 44% to any US price you see. Those photo's, internet, excursions, and gratuities quickly add up.

 

I notice more US cities are going at $15 min wage (http://murray.seattle.gov/minimumwage/#sthash.DlYQwHSV.dpbs). With 40% adjustment..... there is a lot of Canadians not earning $21 an hour.

Edited December 20, 2015 by xlxo

[sapper1]

To illustrate the impact:

 

We booked our Westerdam cruise in Canadian dollars many months ago. Because of that, the Canadian dollar pricing was lower than it is now.

 

The cost for our cruise now, same cabin category is around $3800 more (for two) than when we booked!

 

Needless to say, we won't be watching for any price drops ;)

 

I'm glad we took your advice and heads up to book the same cruise in Canadian dollars when we did before HAL adjusted their exchange rate. We have just made final payment and knew better than to ask about any price drop like we usually do. We just consider that we saved $3800. I guess you can rationalise anything. :D

[Marseydotes]

As a native Detroiter, with relatives in Canada, I've seen the dollar for dollar exchange rate switch in my lifetime. In the 70's and 80's, going to Canada was almost impossible, because the Canadian dollar cost us $1.40 US. My Canadian relatives frequently came to this side of the border to stock up on stuff like toilet paper! We regularly saw Ontario license plates at the malls.

Now, the opposite is true, and those of us here are finding Canadian vacations a bargain. Even a hotel in Toronto seemed relatively cheap (for a big, thriving city!). But, our Canadian friends who love to cruise are suffering.

Seems unfair, I agree. Let's hope things smooth out soon, so we can each enjoy our favorite places--Miami or Vancouver, seattlevor Toronto.

[cbr663]

Yes, I just checked with my bank online. Right now $1 US costs $1.4310 CAD. If you have a credit card that charges a 2.5% foreign exchange fee, well, it can cause you to give pause at the value being offered.

[Blue Mudshark]

I will be going on a 21 day dream cruise with HAL this winter, but I am afraid it may be the last for while due to the inequality in the CAN-US exchange rate :(

 

It gets pretty difficult to lose 30+ cents of every dollar spent.

 

Will be looking at European options for next cruises :)

 

Any opinions...good or bad...

 

If 1.00 USD == 1.40 CAD, nobody is "losing" (or "gaining") 40 cents unless there's an assumption that we can expect parity (1 USD = 1 CAD). I can't imagine any reality-based reason for that expectation. USD and CAD are different currencies. Japanese yen have exchange rates of 10 JPY == 0.008 USD (and 1 JPY == .012 CAD), but that doesn't mean that Japanese are losing 99 cents of every dollar spent in the US or Canada.

 

CAD and USD are not tied to each other ... 1.40 CAD is not 40 cents more than 1.00 USD. It's the same as 1.00 USD. So you won't be losing 52 cents if you choose Europe, although 1 EUR is even bigger than 1 USD.

[OceanTraveller4ever]

If 1.00 USD == 1.40 CAD, nobody is "losing" (or "gaining") 40 cents unless there's an assumption that we can expect parity (1 USD = 1 CAD). I can't imagine any reality-based reason for that expectation. USD and CAD are different currencies. Japanese yen have exchange rates of 10 JPY == 0.008 USD (and 1 JPY == .012 CAD), but that doesn't mean that Japanese are losing 99 cents of every dollar spent in the US or Canada.

 

CAD and USD are not tied to each other ... 1.40 CAD is not 40 cents more than 1.00 USD. It's the same as 1.00 USD. So you won't be losing 52 cents if you choose Europe, although 1 EUR is even bigger than 1 USD.

 

Circular logic....explain that further....

[mariner]

Guess we don't factor in the military expense we pay in the states

[luvcruisn']

If 1.00 USD == 1.40 CAD, nobody is "losing" (or "gaining") 40 cents unless there's an assumption that we can expect parity (1 USD = 1 CAD). I can't imagine any reality-based reason for that expectation. USD and CAD are different currencies. Japanese yen have exchange rates of 10 JPY == 0.008 USD (and 1 JPY == .012 CAD), but that doesn't mean that Japanese are losing 99 cents of every dollar spent in the US or Canada.

 

CAD and USD are not tied to each other ... 1.40 CAD is not 40 cents more than 1.00 USD. It's the same as 1.00 USD. So you won't be losing 52 cents if you choose Europe, although 1 EUR is even bigger than 1 USD.

 

I do 'lose' money with our dollar so low against the U.S. dollar right now. I give the same gift amount to my niece and nephew in the states as I do to the ones living in Canada. However if I give each of them $75.00 it will cost me at least $105 in Canadian funds to do that for the ones living in the states. This can get quite costly with birthday and holiday gifts of money.

Edited December 20, 2015 by luvcruisn'

[cruisemom42]

 

I notice more US cities are going at $15 min wage (http://murray.seattle.gov/minimumwage/#sthash.DlYQwHSV.dpbs). With 40% adjustment..... there is a lot of Canadians not earning $21 an hour.

 

I don't understand what this has to do with anything. The US worker is spending those wages in the US and the Canadian worker is spending his/hers in Canada.

 

What matters is the actual purchasing power of that wage in the country (or city) where that worker lives, not whether the US and Canadian worker are making the same wage when adjusted....

[iancal]

This is the first time in many years that we either do not have a cruise booked or are not actively shopping for one. We simply are not bothering.

 

We are doing an AI in January and an extended land trip in Feb/March. Looked at a cruise in conjunction with this but could not justify the expense when compared to other travel options.

 

And the following year. Already planning a winter land vacation in South America.

 

Our dollar will be low for quite some time so we will simply shift to other places on our bucket list where the currency is more favourable for us.

 

The other issue is that cruises are loosing their perceived value to us. Too much cost cutting combined with increasing prices. There are lots of travel options out there....cruising is just one of many for us.

 

We skyped our Australian friends last week. They have the same issue. Their currency had decreased in a similar fashion to the CAD. The US economy is on the rebound so I have doubt that this will take up the slack for the cruise lines.

Edited December 20, 2015 by iancal

[RDC1]

Hey, don't blame me. :D

 

Not my fault. ;) Of course, 40% difference is huge.

 

I'm sorry Canadians are in this situation but this, too, shall pass.

 

Maybe, maybe not. While the exchange rate difference has been much narrower for most of the last 11 years, the current exchange rate is in line with historical norms prior to 2004. 2004 was the last time it reached this level.

[RDC1]

As a native Detroiter, with relatives in Canada, I've seen the dollar for dollar exchange rate switch in my lifetime. In the 70's and 80's, going to Canada was almost impossible, because the Canadian dollar cost us $1.40 US. My Canadian relatives frequently came to this side of the border to stock up on stuff like toilet paper! We regularly saw Ontario license plates at the malls.

Now, the opposite is true, and those of us here are finding Canadian vacations a bargain. Even a hotel in Toronto seemed relatively cheap (for a big, thriving city!). But, our Canadian friends who love to cruise are suffering.

Seems unfair, I agree. Let's hope things smooth out soon, so we can each enjoy our favorite places--Miami or Vancouver, seattlevor Toronto.

 

I think your memory must be off. Since 1948 the highest annual number the canadian dollar has been vs the US dollar was in 1959 and 1957 at $1.04 USD to 1 CAD. From 1952 to 1960 the CAD was more valuable. The CAD never has cost $1.40 USD. On the other hand the USD has often cost above CAD 1.25

 

Since 1960 USD has been more valuable except for 1972, 1974, 1976, 2011, and 2012

 

This site gives a good summary of annual data

 

http://fx.sauder.ubc.ca/etc/CADpages.pdf

 

 

In 2002 a USD cost as much as 1.57 CAD so while high compared to recent times the current rate is not near the peak difference and not too far outside of historic norms which are around 1.25 CAD to the USD.

 

There may have been reasons for them to be buying in the US (taxes, gasoline prices, price controls, inflation, etc) but the exchange rate was not the reason. Keep in mind that the 70's was a period of high inflation and the US had price controls in place.

Edited December 20, 2015 by RDC1

[RDC1]

I think your memory must be off. Since 1948 the highest annual number the canadian dollar has been vs the US dollar was in 1959 and 1957 at $1.04 USD to 1 CAD. From 1952 to 1960 the CAD was more valuable. The CAD never has cost $1.40 USD. On the other hand the USD has often cost above CAD 1.25

 

Since 1960 USD has been more valuable except for 1972, 1974, 1976, 2011, and 2012

 

This site gives a good summary of annual data

 

http://fx.sauder.ubc.ca/etc/CADpages.pdf

 

 

In 2002 a USD cost as much as 1.57 CAD so while high compared to recent times the current rate is not near the peak difference and not too far outside of historic norms which are around 1.25 CAD to the USD.

 

There may have been reasons for them to be buying in the US (taxes, gasoline prices, price controls, inflation, etc) but the exchange rate was not the reason. Keep in mind that the 70's was a period of high inflation and the US had price controls in place.

 

Let me clarify that a bit, keep in mind that prices within a country will adjust over time to compensate somewhat for the exchange rates. So if the Canadian dollar is less valuable over time (lets say 25%) the internal prices in Canada for products would tend to reflect the that value and be marked higher. So during short term fluctuations where parity is reached you would get short term benefit because the product prices would not have adjusted as fast as currency level. So a product such as toilet paper might be selling for 1.25 CD and in the US for $1 USD. Then when you get a currency fluctuation the product prices will not change as fast as the currency. So the tp would still be at 1.25 CD and at 1 USD so if the currency hit parity it would be much cheaper for those to cross into the US and the Canadian prices for the same items would seem much higher. So that is probably why you had the situation in the 70's, when the CD hit parity and slightly above the USD. Not because the CD cost 40% more then the USD, but instead because the marked prices in each country stayed at their ticketed price and did not change to reflect the change in currency.

[ellieanne]

I'm not really sure what you want as far as opinions…

Do you want the US dollar to fall?

Do you want other currencies to rise?

Holland America does not set the currency rates. What exactly do you want them to do about it? They are US-based company, so it makes sense that they would deal in US dollars. Other than a complaint that the exchange rate is crappy, I'm not really sure what anyone can do about it.

 

(and for reference, I'm in Australia and the exchange rate is currently AU$1.00 = US$0.71, so it's close the Canadian exchange rate.)

[RMLincoln]

I recall that when the Euro began the exchange rate was 1 Euro for 0.85 USD.... and in recent years (2005) we paid $1.40 USD for 1 Euro. Europe was expensive for us then. This fall we were able to get 1 Euro for 1.14 USD. Now it's even lower but we're home now...

 

It's a choice for all of us where we travel and when one's exchange rate is poor in an area of the world many choose to go elsewhere. Maybe Canadians and Australians can find better vacation value elsewhere than cruise lines marketing to the US or maybe use European cruise lines would curb the exchange rate burden. If there is less demand for US-marketed cruises maybe the prices will come down.

 

It's a good time for US folks to travel to Canada and hopefully that will help boost the economy there.

m--

[jig]

Did not realize that it had gone to 140. I am traveling in Canada this summer and last time I checked it was 1.32.

[dockman]

curency exchange rates are like the stock market ....the tide comes in and the tide goes out...not much of anything the average person can do except jump in and go for a swim....or you may decide to sit on the shore and wait for a new tide....

[Keith1010]

This is all part of the economic cycle.

 

What it will be like two years from now, who knows.

 

Keith

[superoma]

Did not realize that it had gone to 140. I am traveling in Canada this summer and last time I checked it was 1.32.

 

 

Who knows where it will be by summer, could be up, could be down!!

 

 

Sent from my iPad using Tapatalk

[david,Mississauga]

Cunard is very slow to adjust their Canadian dollar rates. I booked a voyage a year in advance in order to "lock in" this advantageous fare. Despite the recent further plunge in the Canadian dollar, there has been no adjustment in the fare. This can work against Canadians as I found out in 2008 when our dollar recovered somewhat but Cunard did not change their rate.

 

I can't recall the name of the cruise line, but it was one that has fares only in US $ and they had a recent advertisement in Canadian newspapers offering a 20% discount to Canadian residents. This type of deal was offered occasionally the last time Canadians had to pay a 40% surcharge on US $ fares. If there are cabins to be filled cruise lines always offer discounts, of course, but an exchange rate discount offered to residents of specific countries is not common.

 

For European cruises or w/b Atlantic crossings booking in British £ rates is not an option for residents of the US and Canada with any of the Carnival-owned lines because this is not permitted. (There is - or was - an exception for P&O cruises because they do not have fares in either US or Canadian $.) At the moment that wouldn't help Canadians anyway. Last year I paid $1.60 for the £ and currently it is about $2.10.

[sprockie]

Thank goodness I chose to book in CAD last spring when I booked this winter's cruise. My rate was locked in at CAD. If I hadn't we'd be spending ALOT more for final payment - or not going at all.

When we went on our first cruise around 2000, we paid 1.49 cents on the dollar!

[1of4]

As a native Detroiter, with relatives in Canada, I've seen the dollar for dollar exchange rate switch in my lifetime. In the 70's and 80's, going to Canada was almost impossible, because the Canadian dollar cost us $1.40 US. My Canadian relatives frequently came to this side of the border to stock up on stuff like toilet paper! We regularly saw Ontario license plates at the malls.

Now, the opposite is true, and those of us here are finding Canadian vacations a bargain. Even a hotel in Toronto seemed relatively cheap (for a big, thriving city!). But, our Canadian friends who love to cruise are suffering.

Seems unfair, I agree. Let's hope things smooth out soon, so we can each enjoy our favorite places--Miami or Vancouver, seattlevor Toronto.

 

:confused:

 

in the 70 and 80...and still now, I have lived less than 2 hours from an American border. I never remember the Canadian dollar being worth 40 cents more. As a child in the early 1970s I bought a $1 doll in an American shop and the shop keeper demanded $1.01 as my dollar was Canadian. As a child he scared me as he was yelling for me to pay the 1 cent and I had no idea of currency differences as I just wanted my doll and I had saved up my allowance money of 5 cents per week.

 

There is no denying that the currency exchange has to be a factor for most of us in deciding on future vacation plans. When I can travel again it will be somewhere that is more favorable from a currency perspective. Losing so much times 4 just doesn't make "cents".

[dakrewser]

If 1.00 USD == 1.40 CAD, nobody is "losing" (or "gaining") 40 cents unless there's an assumption that we can expect parity (1 USD = 1 CAD). I can't imagine any reality-based reason for that expectation. USD and CAD are different currencies. Japanese yen have exchange rates of 10 JPY == 0.008 USD (and 1 JPY == .012 CAD), but that doesn't mean that Japanese are losing 99 cents of every dollar spent in the US or Canada.

 

CAD and USD are not tied to each other ... 1.40 CAD is not 40 cents more than 1.00 USD. It's the same as 1.00 USD. So you won't be losing 52 cents if you choose Europe, although 1 EUR is even bigger than 1 USD.

 

 

Well said.