Travel News

The vast majority of Canadians are changing their travel plans, according to a new Blue Cross survey, with many reducing trips and opting to stay closer to home as a higher cost of living and a weak Canadian dollar weigh on pocketbooks.

The Blue Cross Travel Study surveyed 2,072 Canadians who had travelled in the past 12 months, or plan to travel in the next year. According to the results, 81 per cent of Canadian travellers have changed their travel habits due to the rising costs, a 12 percentage point increase compared to last year. The higher costs have been exacerbated by a weaker loonie that has been weighed down by tariff conflicts and widening interest rate differentials between the Bank of Canada and the Federal Reserve.

“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 destination and duration,” Blue Cross of Canada managing director Tim Bishop said in a news release.

That means Canadians have changed their travel plans. The survey found that 36 per cent of respondents are reducing the number of trips they take, while 35 per cent are seeking out cheaper destinations or accommodations. (Respondents were able to pick more than one answer.) Another 31 per cent say they are opting to travel in off-peak season to save on costs, while 25 per cent are choosing to stay closer to home and 22 per cent are shortening their trips. A quarter are choosing to delay or postpone travel plans entirely. About one in 10 (12 per cent) say they are switching to cheaper modes of transportation to save on costs.

Canadians’ travel decisions are also being swayed by geopolitics. The poll found that about half (47 per cent) of Canadians are less likely to visit the U.S. in the next 12 months. However, the survey was conducted after the U.S. election in November, prior to President Donald Trump ramping up tariff threats against Canada. Some Canadians have responded to the threat of tariffs by cancelling travel plans to the U.S.

Although Canadians are changing their travel plans, so far, Canada’s largest airline says it has not seen a decline in near-term bookings, meaning travel demand remains resilient. Air Canada’s executive vice-president of revenue and network planning, Mark Galardo, said on a conference call with analysts earlier this month that booking trends for the second and third quarters of the year are so far “encouraging.”

Galardo says the airline has yet to see softness in U.S. demand, but that the airline is anticipating a possible slowdown and will proactively move capacity to other routes where it sees strength.

The Blue Cross online survey, conducted in November, polled 2,072 Canadian adults. Participants were selected based on demographic and behavioural considerations relevant to the survey. The poll has a margin of error of +/- two per cent, 19 times out of 20.

Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on X @alicjawithaj.