Travel Price Index

The Travel Price Index (TPI) showed that prices Canadians paid to travel inside the country between the fourth quarters of 2004 and 2005 increased at a slightly slower pace than the rate of inflation as measured by the Consumer Price Index.

The TPI reached 142.6 (1992=100) in the fourth quarter of 2005, up 2.0% compared to the fourth quarter of 2004. In comparison, the Consumer Price Index increased 2.3%.

The two components which contributed the most to the growth in the TPI were the costs related to the operation of automotive vehicles and costs associated with local and commuter transportation.

Costs related to operating automotive vehicles climbed 6.6% between the fourth quarters of 2004 and 2005. This significant growth was mainly due to the jump in the price of gasoline during this period (+13.8%) as a result of the lingering effects of two hurricanes on the petroleum market.

Costs incurred from using local and commuter transportation increased 4.5% during the fourth quarter. The increase resulted from a 6.4% rise in taxi and other local and commuter transportation prices.

However, the growth in the TPI in the fourth quarter of 2005 compared to the fourth quarter of 2004 was mitigated by a 4.9% decline in the price of traveller accommodation.

Two of the remaining components of the TPI also fell, namely clothing (-1.7%) and footwear (-0.2%). The other seven components experienced price growth fluctuations between 0.7% and 2.9%.

The TPI fell 3.5% between the third and fourth quarters of 2005 to 142.6 (1992=100).

Three components contributed to the quarterly decrease in the TPI. First, the price paid for traveller accommodation dipped 16.8%, the largest price decrease recorded by any TPI component during the period.

Next, costs for operating automotive vehicles decreased 3.9%, which resulted mainly from the 8.3% decline in gasoline prices between the third and fourth quarters.

Finally, the 3.1% reduction in costs related to the use of inter-city transportation also contributed to the quarterly decrease. A 3.6% drop in airplane ticket prices was responsible for the decrease in this component.

Three other components of the TPI recorded declines between the third and fourth quarters of 2005: clothing (-1.2%), alcoholic beverages purchased from stores (-0.6%) and the rental of automotive vehicles (-0.2%). The remaining components registered small increases ranging between 0.1% and 2.1%.

For the year 2005, the annual TPI increased 2.1% from a year earlier to 143.1 (1992=100). The rise of the TPI closely matches the Consumer Price Index increase of 2.2% for the same period. The steep increase in the third quarter of 2005 had the most influence on the annual increase of the TPI.

Definitions, data sources and methods: survey number 3810.

For general information, contact Client Services (1-800-307-3382; 613-951-7608; fax: 613-951-9040; cult.tourstats@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Marinka Ménard (613-951-4483; marinka.menard@statcan.gc.ca), Culture, Tourism and the Centre for Education Statistics.