Canadians are flocking to US border cities to take advantage of a travel loophole – and it’s creating lucrative opportunities on both sides of the closed border

Welcome to Canada sign
A “Welcome to Canada” sign at the US-Canada border.

  • Canadian tourists are driving up business in US border towns to avoid strict quarantines in Canada.
  • Those arriving in Canada by land can save as much as $2,000 (Canadian) by not having to quarantine in a hotel.
  • Transportation firms in cities like Buffalo, New York, are reaping the benefits with costly fares.
  • See more stories on Insider’s business page.

Canadian tourists are once again stimulating the economies of American border cities and bringing back the “Buffalo shuffle” despite the border between the two countries remaining closed to non-essential travel.

Transportation companies in Buffalo, New York, are experiencing a long-awaited boom in business by catering to Canadians heading north, CBC is reporting, and the reason is a loophole that allows them to avoid mandatory COVID-19 hotel quarantines when arriving back home.

Recently enacted travel restrictions in Canada require that residents returning by air quarantine in a hotel at their expense, up to $2,000 (Canadian), according to CBC. Canadians traveling across the land border, however, need only submit to a home quarantine while undergoing extensive testing for the coronavirus, in addition to providing a recent negative test to border guards.

Buffalo is one outpost that’s seen an uptick in Canadian visitors, but not directly from Canada. Visitors from the north have been arriving by air from parts of the US and making the last stretch of their journey home by land, crossing the world’s longest border by car.

One transportation company, Buffalo Limousine, told CBC that it transports an average of 50 Canadians per day and business has increased by 50%. The pandemic nearly decimated the company, along with countless businesses that relied on Canadian customers.

A Buffalo Limousine trip from Buffalo-Niagara International Airport across the border to Fort Erie, Ontario costs around $120 one-way for the 17-mile trip, CBC said.

Peace Bridge in Buffalo, New York
The Peace Bridge connects Buffalo, New York with Fort Erie, Ontario.

Public transportation options before the pandemic included Megabus Canada and Amtrak, which took passengers from Buffalo to Toronto with stops along the way. Both have stopped cross-border services during the pandemic, according to their websites.

Reviving the Buffalo shuffle

Prior to the pandemic, America’s neighbor to the north was more than willing to cross the southern border to save on everything from gasoline to airfare. Canadian visa holders also frequently visited the now-closed Consulate General of Canada in downtown Buffalo in order to apply for certain extensions that could only be done outside of the country, a trip known as the Buffalo shuffle.

But the US-Canada land border has been closed to non-essential travel since March as part of a mutual agreement between governments to slow the spread of the coronavirus. The US and Mexico have a similar agreement, though Americans can cross into Mexico with abandon thanks to the Latin American country’s lax entry and exit rules.

Ironically, US border restrictions prevent Canadians that aren’t also American citizens from entering by land so flying is the only option for many to enter the Land of the Free. A winter visitor to the US, for example, would have to fly from Canada to the US and then fly to a border town like Buffalo to drive back in to avoid quarantine.

The rules have created another niche industry in Canada that supplies short, cross-border flights so Canadians can take advantage of the loophole. CBC reported in February that many Canadians continued to flock to the US even after their government had enacted stricter travel restrictions, and one company even started offering international helicopter flights.

Great Lakes Helicopters operates 28-mile flights from St. Catharines, Ontario, near Niagara Falls to Buffalo, which costs $1,500 (Canadian) plus tax, according to its website. Canadians can even drive to St. Catharines and have the company ship their cars across the border – cross-border trucking has not stopped during the pandemic – for between $700 and $1,600 (Canadian), depending on the size of the car.

Robinson R44 Helicopter
A Robinson R44 helicopter similar to the one used by Great Lakes Helicopters.

But temporarily gone are the days of Canadians driving across the border to an airport like Buffalo-Niagara International, Ogdensburg International, or Bellingham International, to avoid paying the high taxes levied on international flights from Canada to the US. Major airlines have largely pulled out of border airports during the pandemic, as a result of the border closure.

Allegiant Air packed up from Ogdensburg, New York, billed as an alternative to Canada’s capital of Ottawa just 60 miles to the north, according to 7 News. Plattsburgh International Airport in New York, an alternate to nearby Montreal, and Niagara Falls International Airport, an alternate to nearby Toronto, also saw some flights disappear during the pandemic, according to the Press-Republican and the Buffalo News.

But Southwest Airlines is preparing for the eventual easing of border restrictions and announced service to Bellingham, Washington, slated to launch sometime in 2021. Bellingham is just south of Vancouver and could attract British Columbia residents seeking to head to points south on the cheap.

Canadians seem eager to flee to the US by any means necessary, in contrast to the pandemic’s peak when Americans were shunned from Canada. Cars with American license plates in Canada were keyed and even flipped by some locals.

The US is vastly outperforming Canada in vaccinations per 100 people, according to the New York Times, and the mutual decision to keep the border closed will ultimately depend on how comfortable Ottawa is in allowing cross-border travel along its southern frontier once more.

Read the original article on Business Insider

Flights are the cheapest they’ve ever been as airlines slash costs and try to coax back travelers

airport time
  • Airfare is lower than ever as carriers try to draw customers back in.
  • The average domestic ticket price is $245, the lowest on record.
  • Airlines are using available cheap planes and laid off flight crews to offer low prices.
  • Visit the Business section of Insider for more stories.

Airlines are using cut-rate ticket prices to appeal to customers ready to travel again after a year of the pandemic.

The latest average domestic fair reported by the Department of Transportation is $244.79, the lowest on record according to DOT. That price is down 30% compared to last year at the same time, Bloomberg reported.

Carriers around the world cut $1 billion in daily expenses last year as demand for travel plummeted, Bloomberg reported. Those savings are giving the airlines the freedom to slash fares and entice customers back.

Experts are predicting a return to normal as early as summer 2021, and vaccination rates continue to rise. Airlines are offering cheap rates and flexible booking policies to get people in seats as soon as possible.

All three big US airlines, United, Delta, and American, along with other smaller ones have stopped charging change and cancellation fees on many flights, excluding the lowest basic economy fares. Insider previously outlined which airlines are the best bets to book in 2021 here.

Major airlines are also continuing to add new destinations as they seek to capitalize on the downturn and come out stronger. Low-cost carrier Southwest announced it will add Myrtle Beach, South Carolina; Bellingham, Washington; and Eugene, Oregon this summer. These newest destinations were in addition to the Florida and Montana destinations and the 19 new routes Southwest announced in December, including service between Houston and Chicago, Houston and Dallas, and others.

Domestic budget airline Allegiant Air similarly took on a major expansion, announcing 21 new routes and three new destinations beginning in March. Small carriers like Allegiant are expected to recover from the effects of the last year faster than larger airlines that rely on domestic and international trips, Tom Pallini reported.

Airlines can save on costs even further with the availability of thousands of employees laid off in the last year looking for work, and the chance to buy unwanted planes from cancelled orders at discount prices. Traveler numbers, however, remain about 50% of last year’s levels, according to the Transportation Security Administration.

Read the original article on Business Insider