Aidan D’Souza normally begins planning international trips at least six months in advance, but recent price volatility has pushed him to start even earlier. For a January trip to Japan, he began tracking fares last month. “We started earlier because we wanted time to react if ticket prices rise,” he said. Monitoring prices sooner gives him more options to lock in reasonable fares or adjust travel dates and routes.
Fuel prices push up travel costs
Rising energy costs linked to geopolitical tensions in the Middle East have driven up jet fuel costs for airlines and pushed pump prices higher for drivers. The result is increased travel expenses across the board: higher airfares, extra fees, and steeper costs for road trips. Several Canadian carriers—including WestJet, Air Canada and Porter Airlines—have introduced fuel surcharges on specific bookings in recent weeks, adding to airfare pressure that began rising earlier in the year.
Travel agents and industry observers say consumers are reacting in different ways. Some book far in advance to secure seats and prices, while others take a gamble and wait for potential drops. The mixed response reflects uncertainty in the market as fuel prices and airline surcharges remain in flux.
Featured travel credit cards
Scotiabank Gold American Express Card
American Express Cobalt Card
MBNA Rewards World Elite Mastercard
Many Canadians are locking in trips earlier than usual to secure both prices and available itineraries. “Fuel prices are still adjusting,” said Amra Durakovic, head of communications for Flight Centre Travel Group, noting that rising fuel and surcharge costs are encouraging some travellers to confirm plans sooner rather than wait. Despite higher costs, overall travel demand has remained resilient so far.
Flight prices fluctuate as demand shifts
D’Souza and his friends moved to book quickly to avoid further increases. He secured reasonable fares to Japan but accepted a long layover in another country to keep costs down. “Prices changed depending on when we checked routes—sometimes steady, sometimes higher,” he said.
Jason Sarracini, CEO of travel agency OST.travel, says routes that avoid the Middle East have generally been more stable, while flights through or to parts of Southeast Asia have seen more disruption. He hasn’t observed a widespread rush to book far in advance; instead, many customers are hesitating or taking a wait-and-see approach.
“There’s a lot of uncertainty,” Sarracini said. “Some people will decide not to travel internationally this year, or they’ll choose domestic trips instead.” That caution is affecting demand patterns and timing of bookings, with travelers weighing potential price changes against flexibility and safety concerns.
Uncertainty drives caution in booking decisions
Higher travel costs are occurring alongside broader concerns about safety and geopolitical risk. For many travellers, safety and cost now go hand in hand when picking destinations. As a result, popular choices include sun destinations, parts of Europe perceived as stable, and domestic travel options where travellers feel comfortable.
Durakovic said consumers are focusing on value and flexibility: choosing less expensive destinations, considering adjustable travel dates, and prioritizing refundable or flexible fares where possible. These strategies help protect travellers from sudden changes in price or schedule.
Even experienced travellers are selectively postponing some bookings. D’Souza has flights between London and Toronto already reserved, but he is delaying plans for a trip to Dublin to allow more time to assess developments in the Middle East.
Sarracini believes the market will likely stabilize once airlines lock in fuel contracts and finalize surcharge policies. “Airlines can only raise fares so far before demand softens,” he said, suggesting that fare increases and surcharges should settle in the coming weeks, giving consumers clearer signals about when to book.
Read more about travel:
- Saving money on vacation doesn’t have to mean sacrificing fun
- Trade homes, not cash: A new way to see the world
- Jet fuel surge pushes airline fares higher