Travelling in 2025? Get ready to pay more for flights, hotels and rental cars

January is a busy time of the year to book travel, possibly for a trip down south for March break, a cruise or a summer European vacation.

If you're planning to get away this year, the experts say it's best to plan ahead and be aware that costs have gone up.

Travel expert Barry Choi says the cost for hotels, flights and rental cars have all increased and with our Canadian dollar below 70 cents U.S., you need to budget your trip carefully.

“I think it will shock some people just how expensive flights and hotels have become. Especially if they haven’t travelled since the pandemic,” Choi said.

Also, new travel documents are now required to go to Europe and Choi said that new ETIAS forms are required to enter 30 European countries, including France and Italy.

"Essentially you have to pay 10 English pounds if you’re heading to the U.K., and seven Euros if you're heading everywhere else. It all can be done online digitally but it is mandatory, and you should do it before your trip,” he said.

Starting January 8, 2025, all Canadian and U.S. citizens will need an Electronic Travel Authorization (eTA) to travel to or through the United Kingdom. The same requirement will come into effect for European Union (EU) citizens starting April 2, 2025. The new travel forms for the other 30 countries will be implemented in about six months or mid-2025 and Canadians will have to make sure they have the forms filled out if they are travelling to Europe later this year. 

You'll also want to make sure your passport is valid and pay close attention to the expiration date. Some countries require a passport to be valid for three to six months, even if you are visiting for a week.

“Some countries won’t let you in if your passport expires within six months of your travel dates. Some airlines might not even let you board the plane if you don’t meet this rule,” Lisa Gill with Consumer Reports said.

You should also check the government of Canada’s website for travel advice and advisories by destination before you go.

“Check websites for travel advisories or alerts. It’s a great way to stay informed about potential safety risks at your destination,” Gill said.

Renowned travel expert and author Rick Steves said that traveling is about stepping outside your comfort zone. He calls it the best souvenir, and traveling abroad offers plenty of those moments.

“Learning new things, connecting with people, and being thankful,” Steves said. “Travelling is a mindset. It's a curiosity about the world."

Additionally, be careful as some medications that are legal in Canada may be illegal in other countries.

Even though cannabis may be legal in Canada and some other countries, you should not travel with it.

To avoid any issues, review the regulations and required documentation with the destination's embassy ahead of your trip.

Steves said as you plan your trip and take care of the essentials, consider setting aside part of your budget for meaningful experiences like guided tours, to make your journey unforgettable.

“When you do invest in that experience, you get triple the value out of it. So, in a sense, that's what a budget trip tip is,” he said.

If you're planning a cruise or overseas trip, book at least six months to a year in advance to give you to time to prepare.

Consumer Reports recommends booking directly with an airline so if there are changes you can work with them instead of a third-party website.