Financial strain, including from a weak Canadian dollar, isn’t disabusing Canadians from travelling.
They are, however, becoming more conscious of how they travel.
“We’re seeing travellers adjust their plans to not only overcome economic barriers but also factor in the impact their travel will have on the world. This is leading to more intentional planning, such as choosing destinations that are more aligned with one’s values while also considering risks like extreme weather,” said Tim Bishop, Blue Cross of Canada’s Managing Director.
“With this mindset, Canadians are prioritizing flexibility and peace of mind with the goal for them to travel with greater confidence.”
The survey used 2,072 respondents who either travelled in the last year or intend to in the next 12 months, and determined 81% of Canadian travellers have changed their habits amid financial pressures—a 12% year-over-year. With 70% of boomers reportedly adjusting their travel habits, it is perhaps unsurprising, then, that 90% of zoomers, who are just beginning to travel independently, are doing so somewhat frugally.
But, according to the survey, 36% of Canadian travellers have reduced the number of voyages they take, indicating a preponderance of affordability for 35% of respondents. The survey also revealed that 31% of Canadians travellers opted for off-peak travel so they wouldn’t break the bank, while a quarter are travelling to destinations closer to home, and 22% are taking shorter trips.
The study also determined that 12% of travellers have shifted to cheaper methods of transportation, like trains and buses, which, Blue Cross says, signifies that travel remains paramount even amid economic headwinds.
“As financial pressures continue to impact how Canadians travel, the weak dollar is adding to 2025 budget considerations, contributing to how decisions are made for both destinations and duration,” Bishop said.
The survey determined other factors influencing Canadians’ travel habits, namely geopolitical tensions and uncertainty, with 47% of respondents’ enthusiasm for visiting the United States in the next year lukewarm at best since the re-election of President Donald Trump on 5NOV.
Moreover, so-called “over-tourism” is an emergent concern with 45% of Canadian tourists having experienced anti-tourist sentiment like daily visitor restrictions or difficulty booking short-term rental accommodations. Consequently, 47% of respondents—among whom 55% are millennials and 47% Gen Z—have changed their travel plans to mitigate adverse impacts, like the surging cost of living and social pressures, on local communities.
Twenty percent of respondents said they’re avoiding over-touristed areas, while 19% attempt to support local businesses wherever they travel. As a result of travellers’ evolving intentions, 83% of respondents believe travel can build positive connections with local communities.
Climate change also emerged as a major concern for travellers, with 65% of respondents modifying travel plans, while 77% factor it into their travel plans. Moreover, 27% opt for destinations with less extreme weather, with 23% choosing dates to minimize risk, a fifth of respondents avoiding certain destinations altogether.
