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Travel costs are expected to rise as demand creeps up

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HALIFAX -

Anyone expecting to travel later this summer or fall should be prepared to pay more for everything from flights to car rentals, thanks to pent-up demand and seasonal increases.

While traffic is still down dramatically at Halifax Stanfield International Airport, it's been steadily increasing in recent weeks as COVID-19 restrictions loosen.

"We're up to about 1,500 to 2,000 people a day, arriving and departing," Public Affairs Director Tiffany Chase told CTV News Wednesday.

"Still not that 11,000 that we would have seen pre-pandemic, but we continue to see small, incremental increases. I feel like, as more people are vaccinated, particularly getting the double dose … we expect more people will be choosing to travel to reunite, especially with family and friends in the coming weeks."

Peter Banks and Kerry Andrews from Truro were flying to Alberta Wednesday for the birth of their latest grandchild.

"We're flying direct to Calgary, and then Calgary to Fort Mac, but as far as the prices, I haven't noticed any difference," said Banks.

Some travellers have snagged some deeply discounted flights, but experts say those will be harder to find as demand continues to increase across the country.

In the United States, Delta Airlines reported Wednesday it expected to return to profitability, with domestic leisure demand fully recovered in that country.

"This is exactly what we expected with the recovery that we're starting to see right now," said Dr. Lorn Sheehan, director of the Rowe School of Business.

"We saw it happen already in the U.S., because the U.S. is open ahead of Canada, and now we're starting to see the same thing in Canada."

"That will increase even further when global travel opens up more."

But seasonal demand will likely also be a factor in pricing.

"As the summer goes through, gas prices go up, and peak season hotels are charging higher rates and that's just the nature of the travel industry," said Gary Howard, CAA Atlantic's VP of Marketing and Communications.

Prices were the last thing on Kerry Andrews' mind as she and Banks waited for their flight Wednesday.

"We have a daughter and a son and two grandsons - and one on the way tomorrow, so we're really excited to see our family," she said.

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