Overly-strong US dollar eliminating many cruisers

[sapper1]

For the sake of accuracy, you cite one business out of hundreds or perhaps thousands and even that one says American and Canadian lobsters.

Picking nits seems to be contagious. :)

 

By "we" my reference was to me and mine. You seem to have interpreted it to mean we as in all Bostonians.

 

Happy Holidays. May your lobsters be sweet and tender.

 

 

A little holiday reading from the Canadian government website.

 

It's from 2008 but I wasn't going to waste time looking for the very latest report. This pretty much gives the picture and it is hardly nit picking.

 

http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-region/united-states/fish-and-seafood-sector-profile-new-england-united-states/?id=1410083148468

Edited December 22, 2015 by sapper1

[CJcruzer]

The Canadian Deposit Insurance Corporation - CDIC - does NOT cover foreign currency deposits/holdings.

 

Interesting information below, I did not know that it also does not cover holdings/term deposits that are longer than 5 years!

 

http://www.cdic.ca/en/financial-community/Pages/protecting-your-deposits.aspx

[Karennella]

Bbb

[Karennella]

Had not checked the Canadian dollar rate lately but it has certainly dropped a lot and is now almost on a par with our Aussie. We were in Maui earlier in the year when they were both sliding and we found Maui awfully expensive.

However it is much better for Australia for the dollar to be low in so many ways. I certainly have scrubbed the US off my travel list for now and will take some hoarded US cash for the onboard costs of our HA cruise in Europe.

By the way, we think bank interest of 2.5 is dreadful. What would you pay on a housing loan?

[kazu]

Once again, the exchange rate is not a mark-up. 1.40 CAD is not 40% more value than 1.00 USD. It's the same value. USD and CAD are not the same, and are not intended to be the same.

 

USD and CAD are not traded at par, except by chance occasionally. If you don't get it, I advise you do convert your dollars to Japanese yen, and you will be independently wealthy for the rest of your life; filthy rich. It makes about as much sense as calling the CAD/USD exchange rate a "mark-up".

 

People don't expect one $US to be equal to one Ruble or one Dinar or one Peso, etc, but do strangely think that one $US should equal one $CAD.

.

 

Oh my heavens! No one expects the Cdn $ to equal the U.S. $

 

No one has made that statement.

 

If markup is the wrong term then so be it. But it IS costing $1.40 Canadian to get one U.S. $. Like it or lump it, that makes it costly and it WILL affect plans of some if not many Canadians.

 

It is a rare day when the currencies are on par and Canadians are used to paying extra for U.S. $ but this current exchange rate is very high and does give a person cause to think and hesitate.

 

It's a fact of life that when a vacation is going to cost 40% more that it is going to have an effect. In fact, my DS cancelled their cruise because of the increased cost.

[superoma]

Oh my heavens! No one expects the Cdn $ to equal the U.S. $

 

 

 

No one has made that statement.

 

 

 

If markup is the wrong term then so be it. But it IS costing $1.40 Canadian to get one U.S. $. Like it or lump it, that makes it costly and it WILL affect plans of some if not many Canadians.

 

 

 

It is a rare day when the currencies are on par and Canadians are used to paying extra for U.S. $ but this current exchange rate is very high and does give a person cause to think and hesitate.

 

 

 

It's a fact of life that when a vacation is going to cost 40% more that it is going to have an effect. In fact, my DS cancelled their cruise because of the increased cost.

 

 

Well said, Kazu. The high exchange, USD and euro, is what will keep us in Canada this summer.

 

 

Sent from my iPad using Tapatalk

Edited December 22, 2015 by superoma

[Blue Mudshark]

Oh my heavens! No one expects the Cdn $ to equal the U.S. $

 

No one has made that statement.

It's a fact of life that when a vacation is going to cost 40% more that it is going to have an effect.

 

But CAD 2800 is not 40% more than USD 2000. It's the same value.

 

The idea that it costs 40% more depends on the (incorrect) expectation that the two currencies should be at par. And numerous people on this thread have made pretty much exactly that statement.

[dakrewser]

But CAD 2800 is not 40% more than USD 2000. It's the same value.

 

The idea that it costs 40% more depends on the (incorrect) expectation that the two currencies should be at par. And numerous people on this thread have made pretty much exactly that statement.

 

 

Exactly.

 

2000USD = $1824Euro = $2800 CAD

 

at today's rate. So far from being 40% more, $2800 CAD is exactly the same as $2000 USD.

[jtl513]

Oh my heavens! No one expects the Cdn $ to equal the U.S. $

 

No one has made that statement.

It's implicit every time someone talks about "losing" 40% on the currency conversion, which has been repeated over and over in this thread.

It's a fact of life that when a vacation is going to cost 40% more that it is going to have an effect.

It may be true that a cruise today is going to cost you 40% more of your dollars than it did in the past, but it is NOT true that you are currently paying 40% more than we are.

 

Let's say I am in Denmark, and the price of a cruise is 10,000 kroner. If I exchange those kroner for $2000 US I can buy the same cruise with those 2,000 dollars. That does not mean that it's cheaper with US dollars, only that it takes fewer units of money to equal the same value.

 

If you pay $2800 CAD for a cruise that is the same as us paying $2000 US.

.

Edited December 22, 2015 by jtl513

[visagrunt]

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.

 

If you do that, then you are giving the two in the United States 40% more (at current rates) than you are giving to the ones in Canada.

 

You are not giving them the same amount, you are giving them the same number of something that has a completely different value.

 

Because of the advance purchase nature of cruises, it will take a while for the impact to shake out in the market, but it will--no one can afford to lose too much market share in the present environment.

[Tom O.]

I live in Boston and we do not get Canadian lobsters. :D

Ever had a cold water Maine lobster? Delicious.

My local lobster pound gets their fresh supply from local lobstermen. We

support our local fishermen whenever possible. :)

 

That is NOT to say we haven't enjoyed many a wonderful lobster from Canadian waters when we are in Halifax, in particular. :)

 

 

I would just like to point out that "Maine" lobsters and the lobsters from Eastern Canada, are the same species and live under the same cold water conditions. They are identical, after all, the Canadian lobsters just live up the coast a ways. Restaurants often sell either one, depending on their supplier. And you are right, they are both delicious.

[caladezi]

I would just like to point out that "Maine" lobsters and the lobsters from Eastern Canada, are the same species and live under the same cold water conditions. They are identical, after all, the Canadian lobsters just live up the coast a ways. Restaurants often sell either one, depending on their supplier. And you are right, they are both delicious.

 

Do the Canadian lobsters feel inferior to those living on the US side of the line? The only place that I can think of that remains constant with the USD is the Cayman Islands where the exchange rate has been .80 Cayman to $1.00 USD ever since I can remember. That means we spend $1.25 of our dollars to get $1.00 in Cayman value. This rate has been constant for years and has not fluctuated. Some years that good for us and some years not, but that's how it is.

 

I don't understand why the Canadians blame the US for their poor economy and diminished value of their currency.

[Lizzie68]

Oh my heavens! No one expects the Cdn $ to equal the U.S. $

 

No one has made that statement.

 

If markup is the wrong term then so be it. But it IS costing $1.40 Canadian to get one U.S. $. Like it or lump it, that makes it costly and it WILL affect plans of some if not many Canadians.

 

It is a rare day when the currencies are on par and Canadians are used to paying extra for U.S. $ but this current exchange rate is very high and does give a person cause to think and hesitate.

 

It's a fact of life that when a vacation is going to cost 40% more that it is going to have an effect. In fact, my DS cancelled their cruise because of the increased cost.

 

Thanks for putting it into perspective. It saddens me to see the silly little spats and sheer nastiness breaking out here over some honest observations and comments.

[jtl513]

The only place that I can think of that remains constant with the USD is the Cayman Islands ...

One Bermuda dollar has equaled one US dollar as long as I can remember ...

 

Edited December 22, 2015 by jtl513

[cruz chic]

Do the Canadian lobsters feel inferior to those living on the US side of the line? The only place that I can think of that remains constant with the USD is the Cayman Islands where the exchange rate has been .80 Cayman to $1.00 USD ever since I can remember. That means we spend $1.25 of our dollars to get $1.00 in Cayman value. This rate has been constant for years and has not fluctuated. Some years that good for us and some years not, but that's how it is.

 

I don't understand why the Canadians blame the US for their poor economy and diminished value of their currency.

 

Who is blaming the USA? Pretty sure when the tables were turned a few years ago Canadians would not be making these same types of remarks to those in the USA. I'm amazed at some of the comments.

[The Sunset Glow]

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.)

 

Royal Caribbean is allowing Canadian cruisers who have booked a cruise in CDN$ to buy OBC in US$ at 1.10 exchange. That's a great deal for Canadians. I think Princess is doing the same. This is one reason we still have cruises booked right now - for a family of 4 this is a huge savings.

[iancal]

Demand for CAD is down. Not unexpected given that oil has dropped from 100 plus to 35. Oil is a major Canadian export. Lower prices mean less demand for CAD. Manufacturing and exports are not doing well. That depresses demand even further. Australia is having the same issue with coal and iron ore I believe.

 

This is no different than cruise pricing. When demand is low, prices are low.

 

There is one bright spot at the moment. Banks. Canadians, it seems, love (or are too complacent) to pay exorbitant personal, investment, and business banking fees. So our banks are recording record profits.

Edited December 22, 2015 by iancal

[Lizzie68]

Demand for CAD is down. Not unexpected given that oil has dropped from 100 plus to 35. Oil is a major Canadian export. Lower prices mean less demand for CAD. Manufacturing and exports are not doing well. That depresses demand even further. Australia is having the same issue with coal and iron ore I believe.

 

This is no different than cruise pricing. When demand is low, prices are low.

 

There is one bright spot at the moment. Banks. Canadians, it seems, love (or are too complacent) to pay exorbitant personal, investment, and business banking fees. So our banks are recording record profits.

 

Can I ask where you got this info from? This Canadian hasn't paid any bank fees for many years, and not just because I'm old, either;). It's all about negotiation and smart banking. But your statement infers all Canadians.......

[Copper10-8]

I would just like to point out that "Maine" lobsters and the lobsters from Eastern Canada, are the same species and live under the same cold water conditions. They are identical, after all, the Canadian lobsters just live up the coast a ways. Restaurants often sell either one, depending on their supplier. And you are right, they are both delicious.

Just wondering if there's a border crossing for Canadian lobsters crossing into U.S. waters or vice versa? And how do we know we're dealing with a Canadian lobster as opposed to a U.S. or, even, a French lobster from Saint Pierre and Miquelon :eek: Me tinks we need tighter border control for lobsters. Let's build an underwater wall and have France pay for it ;) :cool:

[iancal]

As a shareholder, it is a matter of record that the banks are posting record profits. Simply check out the latest quarterly reports. RBC, TD, CIBC. I think that only Laurention did not do as well as expected.

 

Banks fees. Well my experience comes from doing business and from a personal perspective. The banks have been happily charging luckless investers 2.5-3 percnet management fees on RSP, mutuals, etc. Only in the past two years have some customer wized up to the fact that the bank is often making as much, and sometimes more on their customers mutual funds as is the customer. And their advisors are trained and bonused to funnel unwitting customers into funds with excessive management fees.

 

So right now you are maybe getting .5 percent on an account. If you withdraw money from a foreign ATM your bank is in all probability charging you about 2.5 percent higher than the going rate on FX. Visa the same. So, my bank offers us .5 or .8 on a DISA. We are getting 1.8 DISA simply by moving money electronically to a credit union and to a trust company.

 

Shortly before retiring we reviewed our investments and the admin cost of those investments charged by our banks. We were astonished when we actually dug through the detail. Especially since our advisors had been replaced by less expensive inexperienced new hires.

 

Monthly chequeing fees were not our issue, they were a drop in the bucket compared to the hidden account and investment fees.

Edited December 22, 2015 by iancal

[sail7seas]

I would just like to point out that "Maine" lobsters and the lobsters from Eastern Canada, are the same species and live under the same cold water conditions. They are identical, after all, the Canadian lobsters just live up the coast a ways. Restaurants often sell either one, depending on their supplier. And you are right, they are both delicious.

 

The same cannot be said for our local lobstermen who take their boats and traps out to waters quite south of Maine. :)

 

The pound where I buy my lobsters get them from our local fishermen.

 

[earljr]

Just wondering if there's a border crossing for Canadian lobsters crossing into U.S. waters or vice versa? And how do we know we're dealing with a Canadian lobster as opposed to a U.S. or, even, a French lobster from Saint Pierre and Miquelon :eek: Me tinks we need tighter border control for lobsters. Let's build an underwater wall and have France pay for it ;) :cool:

 

 

I have sent a tweet incorporating your comment to several of the political candidates and hopefully we will get some action on your excellent observations.

 

:rolleyes: :D

[sapper1]

Do the Canadian lobsters feel inferior to those living on the US side of the line? The only place that I can think of that remains constant with the USD is the Cayman Islands where the exchange rate has been .80 Cayman to $1.00 USD ever since I can remember. That means we spend $1.25 of our dollars to get $1.00 in Cayman value. This rate has been constant for years and has not fluctuated. Some years that good for us and some years not, but that's how it is.

 

I don't understand why the Canadians blame the US for their poor economy and diminished value of their currency.

 

Blame the US? Where did that come from? I have never heard that expressed in conversation.

I lament the reduced value of our currency at the moment but I certainly don't blame the US. It is what it is and we just have to live with it for a while.

The thread is about whether the situation will affect cruising and general vacation plans. Undoubtedly it will but pointing that out is not blaming anybody.

 

Would you feel better if we all rejoiced at having to pay a 42% mark up on our cruises?

[sapper1]

Can I ask where you got this info from? This Canadian hasn't paid any bank fees for many years, and not just because I'm old, either;). It's all about negotiation and smart banking. But your statement infers all Canadians.......

 

That's right. I think the only fee I have paid all year is when I put a stop payment on a cheque. The issue is really non existent for me.

[caladezi]

The same cannot be said for our local lobstermen who take their boats and traps out to waters quite south of Maine. :)

 

The pound where I buy my lobsters get them from our local fishermen.

 

 

But did those lobsters illegally migrate into US waters from Canada?