In this study, we explore how changes in hotel prices have influenced the demand for hotel stays and flights across Canada's major cities between September 2023 and September 2024.
We also look at the effects of recent stricter regulations on short-term rentals, especially in British Columbia, to see how they shape tourism trends. By examining these factors, we hope to provide valuable insights into travel behaviours and decisions that could inform future strategies in the hospitality and tourism industries.
Methodology
This analysis was conducted using data gathered from Google Trends, which provided insights into search volumes for hotels and flights in major Canadian cities. Additionally, Average Daily Rate (ADR) information was sourced from the CBRE Hotels Canada Industry 2024 Outlook. This research examines the impact of hotel prices on tourism-related search demand or how limiting short-term rental regulations, such as in BC, influence tourism patterns and market dynamics.
Purpose of the Research
This research explores two main facets of the tourism industry in major Canadian cities:
Impact of Hotel Prices on Search Demand for Flights and Hotels: By analyzing the relationship between shifts in Average Daily Rates (ADR) and the corresponding search volumes for hotels and flights from September 2023 to 2024, this study aims to provide insights into travel behaviour and market strategy effectiveness.
Impact of Stricter Short-Term Rental Regulations on Tourism: The study investigates how recent regulatory changes affecting short-term rentals, especially in British Columbia, impact tourist preferences for traditional hotel accommodations and overall tourism dynamics.
Analysis of Major Canadian Cities
City | Sep 2023 Hotels | Sep 2024 Hotels | YoY Growth (%) Hotels | Sep 2023 Flights | Sep 2024 Flights | YoY Growth (%) Flights | ADR 2023 | ADR 2024 | ADR YoY Change (%) |
Montreal | 323,700 | 416,100 | 28.54% | 6,200 | 7,700 | 24.19% | $227 | $230 | 1.32% |
Quebec City | 133,700 | 155,100 | 16.01% | 12,700 | 17,800 | 40.16% | $223 | $230 | 3.14% |
Toronto | 324,900 | 425,000 | 30.81% | 8,800 | 11,200 | 27.27% | $228 | $232 | 1.75% |
Ottawa | 114,300 | 175,300 | 53.37% | 11,600 | 17,800 | 53.45% | $196 | $202 | 3.06% |
Calgary | 209,300 | 325,900 | 55.71% | 36,800 | 51,400 | 39.67% | $175 | $180 | 2.86% |
Edmonton | 90,300 | 162,400 | 79.84% | 1,720 | 3,310 | 92.44% | $136 | $140 | 2.94% |
Vancouver | 387,800 | 467,100 | 20.45% | 8,600 | 10,300 | 19.77% | $268 | $277 | 3.36% |
Montreal
Montreal experienced a 28.54% increase in hotel search volumes and a 24.19% rise in flight searches. The ADR modestly increased from $227 to $230, indicating a robust market with a 1.32% price increase reflecting steady demand.
Quebec City
Quebec City Saw a 16.01% increase in hotel searches and a 40.16% jump in flight searches, with the ADR rising by 3.14% from $223 to $230, suggesting strong visitor interest.
Toronto
Toronto hotel searches grew by 30.81% and flight searches by 27.27%, with the ADR increasing from $228 to $232, a rise of 1.75%, showcasing sustained interest and moderate pricing adjustments.
Ottawa
Ottawa marked the highest growth rates in hotel (53.37%) and flight searches (53.45%), with ADR increasing by 3.06% to $202, signalling an expanding tourism market.
Calgary
Calgary demonstrated significant growth, with hotel searches up by 55.71% and flight searches by 39.67%. The ADR increased by 2.86% to $180, highlighting the city’s escalating popularity.
Edmonton
Edmonton led the cities in year-over-year growth, with hotel searches surging by 79.84% and flight searches by 92.44%. ADR grew by 2.94% to $140, indicating a vigorous increase in travel interest.
Vancouver
Despite boasting the highest Average Daily Rate (ADR) at $277, up from $268—a 3.36% increase—Vancouver saw the most modest growth in search demand. Hotel searches rose by 20.45% and flight searches by 19.77%, the lowest among the significant cities analyzed. This reflects a stable market with premium pricing but highlights a slower growth in tourism and travel interest compared to its counterparts.
Key Takeaways
The findings from our analysis of tourism trends across major Canadian cities highlight several key insights:
Cities Exhibiting Strong Growth: Calgary, Edmonton, and Ottawa have shown remarkable increases in both hotel and flight search volumes, suggesting these cities are emerging hotspots for tourism. These trends present lucrative opportunities for local businesses and tourism operators to enhance their offerings and marketing strategies.
Stable yet Slower Growth in Mature Markets: While Vancouver and Toronto maintain a strong presence in the market with the highest Average Daily Rates, their growth in search demand is relatively slower compared to the burgeoning markets. This signals a need for innovative strategies to rejuvenate interest and stay competitive.
Impact of Regulatory Changes: Implementing stricter short-term rental regulations, particularly in British Columbia, appears to shift traveller preferences towards traditional accommodations. This shift could encourage stakeholders to focus on enhancing hotel services and capitalizing on the increased demand for conventional lodging options.
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