Canadian travel to U.S. remains resilient despite headwinds, says DACC

Despite headwinds, Canadians are still crossing the border - just differently. Canadian travel to the U.S. is feeling the pressure, but the demand is not disappearing.

That was one of the key messages shared during Thursday's (May 8) virtual session hosted by the Discover America Canada Committee (DACC), featuring insights on the state of Canadian outbound travel to the United States from Jennifer Hendry of The Conference Board of Canada.

While political tension and a weak Canadian dollar are creating hurdles, the data tells a different story: Canadians are still travelling to the U.S. but with changing habits, tighter budgets, and different expectations.

Travel sentiment versus behaviour

Despite concerning U.S.-Canada relationship headlines, research data revealed a key distinction between stated intentions and actual travel behaviour.

Hendry noted that while many Canadians express reluctance to visit the U.S. due to political tensions, historical data suggests that sentiment doesn't always translate into action.

As an example, Hendry pointed out that during U.S. President Donald Trump's first term in 2017, about 37 per cent of Canadians surveyed said the presidency would negatively impact their travel plans, with one-third claiming they purposely avoided U.S. travel citing "the political situation."

Yet the data revealed transborder trip volumes actually grew during this period from 19.22 million in 2017 to 20.18 million by 2019.

"What people say they do doesn't necessarily translate into action," Hendry emphasized. "As long as they have the time, can afford their trip, and feel safe, they will still travel."

Economic factors driving travel decisions

The exchange rate remains a critical factor influencing Canadian travel to the U.S., with Hendry pointing out that a one per cent drop in the Canadian dollar's value typically reduces overnight trips by two per cent.

With the loonie currently at $0.72 USD and forecasted to fall 6.8 per cent in 2025, affordability presents a significant challenge.

However, consumer spending patterns indicate Canadians continue prioritizing experiences over tangible goods, with many households maintaining travel as a budget priority amid inflation and rising costs.

The data also revealed that while overall Canadian outbound travel has recovered to pre-pandemic levels (reaching 33.09 million trips in 2024), the composition has shifted.

The first quarter of 2025 saw transborder air trips drop 14 per cent and auto trips fall 21 per cent, while trips to overseas destinations grew by 6 per cent.

Demographics are shifting too, with a larger proportion of younger travellers (42 per cent aged 18-34) planning U.S. trips compared to last summer's 29 per cent.

Industry response

At the conclusion of the presentation, Stephen Fine, president of Snowbird Advisor and member of the DACC Board, reiterated with attendees some takeaways and strategies from DAAC’s March 27 AGM to help navigate current challenges and "weather the storm." 

"There's no way to sugar coat this – travel to the U.S. is down. Sentiment is generally negative right now," Fine stated candidly.

Fine also emphasized that the travel industry is not standing by idly.

"Canadian travel industry organizations and stakeholders are working in conjunction with their U.S. counterparts to compile comprehensive data about negative effects that tariffs are having on U.S. travel industry stakeholders so they can make the case to their elected officials," he explained.

Based on research from the Conference Board of Canada, DACC cited two key factors Canadians are looking for from U.S. destinations right now:

"Canadians want to feel welcome and appreciated by the U.S., both through words and sentiments," and Canadians are also looking for "financial offers and incentives to visit the U.S. right now."

"Where possible, U.S. DMOs and their partners should be offering financial offers and incentives to Canadians. It will help because of the dollar as well,” shared Fine.

For U.S. destinations, highlighting specific locations rather than the country itself, and creating pro-Canadian social media messaging, such as ‘Your destination loves Canada – Canadian flags, pro-Canadian messaging’ were recommended.

DACC recommends focusing on niche markets like younger travellers who may be less influenced by political tensions.

"Focus on small wins right now," Fine advised. "Anything else would be unrealistic at this point in time."

Discover America Canada will soon distribute details to its members about specific initiatives certain U.S. destinations have implemented to attract Canadian visitors.

As Discover America Canada Committee members continue their efforts to foster cross-border partnerships, one individual who truly loved his work promoting the USA was Casey Canevari, who was the Director of Global Trade Development for Canada at Brand USA, and suddenly passed away in Toronto on May 1.  

The virtual session began with a moment of silence as Raina Williams of Expedia Group Media Solutions and DACC Vice President, led attendees in paying tribute to Canevari, a cherished board member who truly loved promoting the USA. He was remembered as "a champion for travel to the USA" whose passion and dedication will be deeply missed by the industry. 

For more information on joining DACC, visit here.

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