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Buying Tickets in Canada Instead of US Due to Exchange Rate?

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Buying Tickets in Canada Instead of US Due to Exchange Rate?

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Old Jan 15th, 2016, 08:41 AM
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Buying Tickets in Canada Instead of US Due to Exchange Rate?

DH and I are planning a trip to Europe in the fall and I'm wondering if it is advantageous for him to buy our tickets in $CDN when he goes to visit family there soon to take advantage of the very favorable exchange rate. The itinerary we're considering is Denver-Toronto-Athens (on Air Canada) and returning Rome-Frankfurt-Denver (on Lufthansa.) I understand that the airlines know where you're browsing from, so if he's using an Canadian ISP, he should be OK to get Canadian prices and use his Canadian credit card to pay. Has anyone ever done something like this? Would there be any prohibition against this? At the moment, $1US=$1.45CDN. That could make a considerable difference in final price, but what am I missing here? Thanks.
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Old Jan 15th, 2016, 09:00 AM
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Make sure the price you see in CDN$ is really a deal, or maybe not, after adjusted for exchange rate. Check as you go on sites like XE.com. I suspect the prices will amount to much the same after the rate is taken into account. I could, of course, be wrong but I'll be surprised if currency makes much difference. Also consider foreign currency exchange fees, if any, probably 3%, charged by many US credit cards.
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Old Jan 15th, 2016, 09:02 AM
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It only makes a difference if you are flying in and out of Canada. Your flight would have to originate in a Canadian city and end in a Canadian city. So if you opt to buy a separate ticket from Denver to Toronto, you may well find a cheaper ticket from Toronto to Athens. But once you add in the cost of the ticket from Denver to Toronto, I doubt it will be cheaper. And the return flight has no Canadian connection.

If one lives close enough to Canada to cross the border and buy a round trip ticket from a city in Canada to a city in Europe, you may well find lower prices. I live in Seattle and have driven to Vancouver, BC in the past for an international flight.

Your assumptions are incorrect: if the flight you mention is $1000 US, it won't be $1000 CDN.
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Old Jan 15th, 2016, 09:06 AM
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"...what am I missing here?"

In other words, using the figures above $1US=$1.45 CDN, the fares on a Canada based search will not be dollar for dollar, both sold, say, for hypothetically $1000, but $1000 in the US and $1450 in Canada.

Do tell us what you find when all is said & done. I'm curious.
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Old Jan 15th, 2016, 09:23 AM
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Sure, I would expect to see higher quotes in $CDN than $US, plus higher taxes, but when the exchange rate is applied, it could be significantly cheaper. I'll have DH look and get a quote anyway. Is it even possible to purchase tickets for trips that don't originate in Canada, or even stop there?
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Old Jan 15th, 2016, 09:30 AM
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Kathie is mostly right: your trip would have to begin in Canada (but you could return to a city in the U.S.).

Excellent example of the type of savings is on a round-the-world ticket. A 3-continent RTW ticket on OneWorld (BA, American, Cathay, etc.) costs US$10,200 (+ taxes/fees) if you begin the trip in Boston; the exact same trip starting in Toronto costs US$7,155.

Still, the issue for the OP is the cost of getting from Denver to Toronto (though maybe it would work out to start in Calgary).
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Old Jan 15th, 2016, 10:12 AM
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When thinking about this, my comparison was faulty. The only thing I could recall was the cost of books, which are often more expensive in Canada, more than the exchange rate would dictate. A perfect case of not comparing apples with apples. If I wasn't already happy with my lower-cost RTW provider, Airtreks, I might consider a first stop in Vancouver next time (worse things could happen, like Toronto). What a difference! Do they give miles too?
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Old Jan 15th, 2016, 10:15 AM
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Use ITA and see; be sure to convert CAD to USD in the process.

Right now there are some excellent ex-Canada fares in business class to Asia, South America and Africa; in some cases nearly half the comparable price from US origin points. Economy class, not so much, but there's no way to know with out more specifics, like dates. See http://www.flyertalk.com/forum/premi...s-1730-ai.html

Note Don's example above is for business class. The comparable coach costs are $2600 (Canada) and $3700 (USA.)
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Old Jan 15th, 2016, 10:20 AM
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<i>What a difference! Do they give miles too?</i>

Of course, and given American Airlines' new elite qualifying mathematics, almost a guarantee of Platinum elite status with one RTW.

With ex-Canada RTWs you can end in the US with no penalty, so you'd only need a one-way ticket to YVR/YYC/YYZ/YUL etc. prior to the first RTW segment.
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Old Jan 15th, 2016, 10:31 AM
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Then the only reason to use a consolidator, it seems to me, is if the OneWorld system can't get me where I want to go. But at this point, mostly returning to places I love more than searching for new, that may be less the case. Is there a link for more information on routes, svp?
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Old Jan 15th, 2016, 10:45 AM
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Found it.

https://rtw.oneworld.com/rtw/

Also:

https://www.aa.com/i18n/AAdvantage/p...e-products.jsp

https://www.oneworld.com/flights/rou...world-explorer
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Old Jan 15th, 2016, 12:15 PM
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<i>But at this point, mostly returning to places I love more than searching for new, that may be less the case. Is there a link for more information on routes, svp?</i>

Don't want to hijack this thread into another one about RTWs, but have a look at this thread, particularly toward the bottom: http://www.fodors.com/community/air-...-ticket.cfm?59

This week a Oneworld four continent business class RTW starting in South Africa costs US$3572 plus taxes and fees.
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Old Jan 16th, 2016, 03:58 AM
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MmeP, each of the major alliances offer RTW plans with similar savings, and the choice of alliance for a RTW is often dependent on matching up the places you want to start from and go to with the alliance that best suits those routes and places. That said, there are some significant differences in each of the alliances RTW rules. (I suspect that Gardyloo especially likes OneWorld because prices for their OneWorld explorer are based on the number of continents you touch and not on the number of miles you fly, which can allow you to rack up an impressive number of FF miles.)

From Canada, it turns out that both Star Alliance and Skyteam offer some better RTW prices than OneWorld. Business class RTW on Star from Canada can be had for as little as US$6402 + taxes/fees for a 26,000 mile trip, compared to US$7100+ for the lowest-cost RTW on OneWorld.

(Apologies to the OP for the total threadjacking.)
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Old Jan 16th, 2016, 11:20 AM
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Having almost emptied my AAdvantage account for my spring trip, miles count in the equation. But as all RTW travelers know, planning such a trip if one is a planner and on a budget, is akin to writing a dissertation so all factors must be thrown into the mix, alliances and which vs consolidator, et al. Winner to be announced at a later date.

(Additional apologies)
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Old Jan 16th, 2016, 11:59 AM
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I omitted thanks to our experts, above. Many thanks, experts!
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Old Jan 16th, 2016, 07:34 PM
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No, you can't save money on normal itineraries due to fx fluctuations. You can save money on round-the-world tickets, but the itineraries as you describe, no. You are wasting your time.
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Old Jan 17th, 2016, 06:14 AM
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<i>No, you can't save money on normal itineraries due to fx fluctuations. You can save money on round-the-world tickets, but the itineraries as you describe, no. You are wasting your time.</i>

That's a blanket statement that doesn't pass some empirical tests.

I just priced two open-jaw itineraries for two weeks in mid-October, using US dollars. YVR-ATH//FCO-YVR (Vancouver) came in at US$688 (Air France) with one stop in each direction. DEN-ATH//FCO-DEN for the same days came in at $1259 with 2 stops using Icelandair; the cheapest one-stop itinerary came in at $1570 (Oneworld, United.) The same spread was consistent throughout October; the OP didn't say when "in the fall" they were planning.

Airfares are adjusted to meet market and supply/demand conditions, and this is consistent with the post I referenced upthread; Skyteam members are selling ex-Canada itineraries at quite a discount. Maybe it's not forex alone, but in this case saving 60% on airfare by starting in Canada wouldn't be a "waste of time" in my book.
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Old Jan 17th, 2016, 06:57 AM
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<i>That's a blanket statement that doesn't pass some empirical tests.

I just priced two open-jaw itineraries for two weeks in mid-October, using US dollars. YVR-ATH//FCO-YVR (Vancouver) came in at US$688 (Air France) with one stop in each direction. DEN-ATH//FCO-DEN for the same days came in at $1259 with 2 stops using Icelandair; the cheapest one-stop itinerary came in at $1570 (Oneworld, United.) The same spread was consistent throughout October; the OP didn't say when "in the fall" they were planning.</i>

I stand by my statement.

You are pointing out that two different tickets have different prices. I don't dispute that. For example, trans-Atlantic tickets have been cheaper ex-Europe compared to ex-US for some time. That is hardly surprising, as the European economy is a dumpster fire and demand is weaker. You are seeing something similar with ex-Canada pricing right now. As the commodity bubble that was propping up the Canadian economy and currency bursts, we should expect demand to shrink appreciably.

What the OP was asking is if the price of the same ticket, leaving from Denver, would differ if bought in Canada. I feel comfortable saying that it won't differ in any meaningful way.

<i>Maybe it's not forex alone, but in this case saving 60% on airfare by starting in Canada wouldn't be a "waste of time" in my book.</i>

You are comparing apples to oranges and, frankly, grossly misrepresenting the "savings". The OP presumably lives in Denver, meaning that they need to get to Vancouver to save the money. To get the savings you promise, that turns your one-stop trip into a two-stop trip, at a minimum. Therefore, the savings is appropriately measured against the cheapest two-stop itinerary, not the cheapest one-stop itinerary. Throwing in the $400 or so to get from Denver to Vancouver and back, that puts the total cost of the "cheaper" itinerary at roughly $1100 (and that is real dollars, not Canadian dollars).

For accepting the risk and hassles of a split ticket and backtracking to Vancouver from Denver, the OP saves 14%, not 60%.
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Old Jan 17th, 2016, 07:38 AM
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The OP was told way upthread that any "savings" for tickets would be for travel originating in Canada, not the US, and my assumption was that's a given. Would an ex-DEN ticket paid for in Canada be cheaper even after forex? No. Would flying to Vancouver (or probably Calgary or Toronto) on a separate ticket, then using the ex-Canada fare to Europe, end up saving money overall? Yes; for my dates $549 per person to be specific.
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Old Jan 17th, 2016, 08:23 AM
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Thanks, Gardyloo, for running those numbers.
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