This year, parents are scaling back their vacation ambitions and getting creative to entertain their children in an affordable way. However, the cost of many recreational and tourist activities in Quebec is high for many families, given the inflation of recent years. Here’s a look at the situation from a business perspective.
“It’s keeping up with inflation,” says François G. Chevrier, general manager of Événements Attractions Québec (EAQ), regarding the increase in rates in his network of more than 500 festivals, events, attractions and tourism corporations in Quebec. “The challenge is to deal with the increase in costs. It’s even more significant than the rate increases, because businesses are aware that customers are not able to keep up with an increase that’s too fast.”
Tourism expert and professor at UQAM’s School of Management Sciences, Paul Arseneault, makes the same observation. “Overall, rates have not increased beyond operating costs and the cost of living,” he believes.
The costs of wages, insurance, materials and food are particularly pressing on businesses.
“It’s a lot of hard work on the part of managers to juggle these increases and maintain fair pricing,” says Josée Cusson, director of communications and marketing at the Association des stations de ski du Québec, many of whose members offer summer activities such as water slides, aerial courses and mini-golf. According to the few members she spoke to about this issue, ticket prices have increased by about 5% in the last three years. Some have not even increased them at all.
These industry stakeholders rely on their observations in the field and feedback from their members. But it is difficult to provide an up-to-date picture, since the latest figures recorded by EAQ stop in 2022. They provide a slightly different picture depending on the period examined. For example, the average fare for an attraction in Quebec, all categories combined, increased by approximately 19% for an adult and 16% for a child aged 6 to 12 between 2017 and 2022, while inflation was 17.25% during this period. Between 2011 and 2022, the average annual rate of increase in fares was between 3.1% and 4.4%, depending on the age group, figures higher than the average annual inflation rate of 2.2%.
Among the recreational tourism companies contacted by The dutysome have admitted to raising their rates higher than inflation in the past five years. Others have kept them well below. Tickets at Cineplex cinemas, for example, have increased by 10%. At the Société des établissements de plein air du Québec (SEPAQ), rentals of single recreational kayaks for one hour have jumped by 10.8%.
After barely increasing his prices since the pandemic, Emmanuel de Gouvello, president of Groupe Échappe-toi, is preparing to increase them by between 5% and 10% this fall. In addition to having to deal with significant salary increases for his employees, his group of several escape room banners has had to repay the federal government’s “COVID loans” since this year. “This is our largest expense after salaries and rent,” Mr. de Gouvello said.
Between free and $40
On average, this diversity of price revisions amounts to an increase that is fairly close to that of the cost of living, according to Mr. Chevrier. That said, for families, an increase equivalent to inflation over the last five years, or 20%, can be limiting if the family income has not kept up. This is particularly true for the most well-known and popular activities, such as zoos, water parks and aerial adventure parks, where the entrance fee often exceeds $40 per person.
“I know few people who are able to do several big outings in their summer. Most families do one and supplement with lower-cost activities,” says the general director of Événements Attraction Québec.
EAQ survey data shows that approximately 27% of Quebec attractions, such as some museums, were free in 2022. Among those that charge an admission fee, prices range from less than $15 for most agritourism sites and interpretation centres, to more than $40 for cruises.
Despite the difficult economic context for many families, both Mr. Chevrier and Mr.me Cusson estimates that traffic remains relatively stable. “The household budget for the holidays is somewhat protected. We make sacrifices to preserve it, because it is seen as necessary for mental health,” says Mr. Chevrier.
This does not mean that recreational tourism companies are not making efforts in terms of marketing. To remain attractive, they are increasing the number of packages adapted to various family situations. Less expensive options, such as pre-sales or end-of-day tickets, have also appeared in recent years.
“We always do a promotion at Black Friday and it has never worked as well as this year,” underlines Mr. de Gouvello, who says he feels that customers are thinking more before buying. It is always difficult for them to determine a price that will ensure profitability without scaring away less fortunate customers.