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Wednesday, November 16, 2005

Travel Price Index

Third quarter 2005

Statistics Canada today introduces the Travel Price Index (TPI) that measures price movements in 12 components as an indicator of the cost of travelling in Canada.

The index showed that prices Canadians paid to travel during the third quarter of 2005 increased at a slightly faster pace than the rate of inflation as measured by the Consumer Price Index (CPI).

The TPI reached 147.7 (1992=100), up 3.0% compared to the third quarter of 2004. In comparison, the CPI increased 2.6%.

The two components which contributed the most to the annual advance of the TPI were the costs related to the operation of automotive vehicles, and costs associated with inter-city transportation.

Costs related to operating automotive vehicles climbed 10.5% in the third quarter. This significant annual growth was mainly due to the 22.3% jump in the price of gasoline during the period, partially because of Hurricane Katrina in Louisiana.

Costs incurred for using inter-city transportation increased 3.4%. This increase was supported by a 3.6% rise in air transportation prices.

However, the advance of the TPI was slowed by a 4.9% decline in the prices of traveller accommodation.

As for the remaining components of the TPI, only one recorded a drop, namely clothing (-0.2%). The others experienced price growth fluctuating between 1.3% and 3.3%.

On a quarter-over-quarter basis, the TPI rose 3.8% between the second and third quarters of 2005. This increase was four times the 0.9% gain in the CPI during the same time period.

Three components contributed to the quarterly increase in the TPI. First, prices paid for traveller accommodation rose 11.4%, the largest price increase recorded by any TPI component during the period.

Second, costs for operating automotive vehicles increased 5.6%, which was mainly the result of the strong growth (+13.1%) in gasoline prices.

Third, the 5.4% rise in the costs related to the use of inter-city transportation also contributed to the quarterly gain. Again, it was a 5.8% jump in airplane ticket prices that was responsible for the increase of this component.

Only two components of the TPI recorded declines between the second and third quarters: footwear (-1.2%) and food purchased from stores (-0.7%). The remaining components registered small increases ranging between 0.2% and 1.2%.

Available on CANSIM: table 428-0002.

Definitions, data sources and methods: survey number 3810.

For general information, contact Client Services (1-800-307-3382; 613-951-7608; fax: 613-951-9040; To enquire about the concepts, methods or data quality of this release, contact Marinka Ménard (613-951-4483;, Culture, Tourism and the Centre for Education Statistics.

Selected components of the Travel Price Index
Components of the Travel Price Index Third quarter 2005 Second quarter 2005 Third quarter 2004 Second quarter to third quarter 2005 Third quarter 2004 to third quarter 2005
  Not seasonally adjusted (1992=100)
        % variation
Inter-city transportation 207.6 196.9 200.7 5.4 3.4
Local and commuter transportation 152.9 152.2 148.0 0.5 3.3
Rental of automotive vehicules 127.8 127.5 126.0 0.2 1.4
Operation of automotive vehicles 174.1 164.8 157.5 5.6 10.5
Traveller accommodation 114.2 102.5 120.1 11.4 -4.9
Food purchased from stores 126.6 127.5 124.0 -0.7 2.1
Food purchased from restaurants 132.6 131.7 128.7 0.7 3.0
Served alcoholic beverages 129.5 128.3 125.9 0.9 2.9
Alcoholic beverages purchased from stores 127.1 126.5 125.1 0.5 1.6
Spectator entertainment 165.1 164.7 162.6 0.2 1.5
Clothing 99.7 98.5 99.9 1.2 -0.2
Footwear 103.0 104.2 101.7 -1.2 1.3
Travel Price Index 147.7 142.3 143.4 3.8 3.0
Consumer Price Index 128.2 127.0 124.9 0.9 2.6

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Date Modified: 2005-11-16 Important Notices