Canadian Lodges charging US$

[KMG Canada]

Currency can have huge impacts on outfitters. In my case a lot of the hunts are booked over a year in advance and currency values can really change. We base our hunts on USD as I mentioned in a previous post. Lately the South African Rand has tanked vs the USD a lot like the Cdn dollar vs the USD. For a guy that paid for his hunt last year he will feel like he should have waited until last minute to try and book. For the hunter booking today he is getting a great deal. That being said you have to constantly find ways to make it attractive to the client. In Canada the dollar has stayed even with the South African Rand, therefore whenever I am quoting a Canadian he gets the benefit of paying in Canadian dollars and not in USD, because there is no loss for us and most certainly a gain for the Canadian booking with us.

[fishing1]

I go every year for a fishing trip,and will not rent anything that is not quoted in canadian funds.My friend ran a charter service on lake st clair and charged in us dollars and his business was full of clients from the us.

[sawbill]

Americans don't have what we have when it comes to 'wilderness' fishing or hunting trips. That's one reason lodges will target American clients simply because its easier fill their bookings. That the greenback is worth more is certainly a bonus for them.
Too, as a resident why should I pay exorbitant rates to fish at a lodge when I can do it locally for far less and not break the bank?

[blasted_saber]

Unbelievable that people actually care about this. Its not hard to figure out.

[trimmer21]

But why would you involve the banks to exchange anything in this situation?
When dealing with a Canadian based business you can pay in Canadian funds.
Convert the US listed price at the current rate and pay in Canadian funds.

At the end point,CDN funds and US funds will hit one of our banks. No business in Canada can operate without them. Even if you operate your entire business with a Canadian bank and a US funds account,conversion is inevitable at some point. That's where they get you and that's where CRA really gets you. Taxes are paid in Canadian funds after conversion and for American outfitter/operators,Uncle Sam gets his "piece",too. It makes one wonder why they bother.

[werner.reiche]

Americans don't have what we have when it comes to 'wilderness' fishing or hunting trips. That's one reason lodges will target American clients simply because its easier fill their bookings. That the greenback is worth more is certainly a bonus for them.
Too, as a resident why should I pay exorbitant rates to fish at a lodge when I can do it locally for far less and not break the bank?

It may be a bit that americans don't have what we have - but its mostly a culture thing. A Canadian that drives a 50k pickup will think 1k pp for a week's fishing is outrageous. An American with a 10k pickup truck will think that is reasonable.

Canadians are notorious for being cheap about what the spend on some things that Americans are not. Generally, if its something we can own (trucks, guns, etc which have a concrete value), we're good, but if it something less concrete - guide service, lodge accommodation, bird hunts, dogs and dog training come to mind) we are cheap.

[werner.reiche]

Unbelievable that people actually care about this. Its not hard to figure out.

It has nothing to do with how hard it is to figure out...Its an expression of anti-Americanism sentiment.

[trimmer21]

It may be a bit that americans don't have what we have - but its mostly a culture thing. A Canadian that drives a 50k pickup will think 1k pp for a week's fishing is outrageous. An American with a 10k pickup truck will think that is reasonable.

Canadians are notorious for being cheap about what the spend on some things that Americans are not. Generally, if its something we can own (trucks, guns, etc which have a concrete value), we're good, but if it something less concrete - guide service, lodge accommodation, bird hunts, dogs and dog training come to mind) we are cheap.

Maybe it's our Scottish roots LOL

[MikePal]

It has nothing to do with how hard it is to figure out...Its an expression of anti-Americanism sentiment.

Bingo...

[JBen]

Some current spot rates this morning.
USD/CAD: 1.4099
EUR/CAD: 1.5304
USD/EUR: 0.9208

If someone in Europe wanted to go on a spring bear hunt with a Canadian outfitter and the price was quoted as $1,000 USD.
It would cost them
$920.00 EUR

If they wanted to pay for it in CAD. The outfitter would charge $1,409. CAD ( usdcad 1.4099)

$920 EUR at 1.5304 (eur/cad) would fetch $1,407 CAD.

Us traders and our computers are very good at fast at finding any inefficiency's in the markets.
So theres no difference between converting CAD, to Eur, to YEN, to ZAR and then to USD....Or CAD to USD


The spreads people pay banks are basically a commission.
Whether you
1) buy box of shells at its marked up from cost so the retailor makes a profit .
2) Sell or buy a house (5% commission)
3) Buy a beer at pub, or eat at a restaurant (15% commission/tip)

.03 to .05 spread (5 cents on the dollar or 5%)...........................

In the end it makes zero difference whether the outfitter list their services as
$1,000.00 USD
$ 920.00 EUR
$1,400.00 CAD

If the bulk of their clients Americans for fishing, or Europeans for Bear ( 1 outfitter I know gets a lot them). it makes no difference.