Rising costs, global instability reshape how Canadians travel: study

Canadians continue to show a strong desire to explore the world, but shifting global conditions are influencing how they plan their trips and where they choose to go, a new study suggests.

Economic pressures, geopolitical tensions, and changing perceptions of certain destinations are all playing a role in shaping travel decisions.

According to CAA’s 2025 Travel Wise National Survey, more than half of Canadians—51 per cent—say global political and economic factors are affecting their travel choices.

Concerns such as international instability, higher travel costs, and a growing perception that the United States is less welcoming to visitors are prompting many travellers to reconsider their options, the study says.

Changing destinations

As a result, travel patterns among Canadians are evolving, says CAA.

The survey found that only 22 per cent of Canadians planned to travel to the United States in 2025, marking an 11-per cent decline from the previous year.

Instead, many Canadians are choosing to stay closer to home, with 40 per cent planning trips within Canada, while others are looking to explore destinations beyond North America.

“Canadians are adventurous by nature, but today's travellers are having to make thoughtful decisions," said Kaitlynn Furse, director of corporate communications, in a release. "We're seeing a clear trend toward exploring closer to home and seeking out new international experiences, all while keeping an eye on safety and value."

Rising costs and ongoing uncertainty around the world appear to be encouraging travellers to balance their desire for adventure with practical considerations such as affordability and security.

Travel insurance often overlooked

While many Canadians feel comfortable travelling within their own country, that sense of familiarity can sometimes lead to misconceptions about risk.

The survey revealed that 64 per cent of Canadians did not purchase travel insurance for their most recent trip within Canada.

Many travellers believe that being on “home turf” means they are fully protected, but that is not always the case. Provincial health plans typically provide only partial coverage for medical services outside one’s home province, and in some cases only cover basic emergency care.

"Recent stories have highlighted Canadians facing unexpected medical bills, trip interruptions, and emergency expenses while travelling within Canada, often because they didn't realize their regular provincial health coverage or credit card benefits had limits," said Furse. "If something were to happen, provincial healthcare only partially covers you outside of your home, and sometimes, not at all, covering only basic emergency medical services when travelling in another province."

Among those who travelled without insurance, 44 per cent said they did not think it was necessary, while 29 per cent believed their provincial health plan would be enough.

"One of the biggest misconceptions we see is the idea that travelling within Canada comes with less risk," said Furse. "Unexpected medical costs, trip interruptions and emergencies can happen anywhere, and many travellers are surprised to learn they're not fully covered."

The online survey was conducted by DIG Insights from September 29 – October 8, 2025, with 2,0210 Canadian travellers aged 25 to 64 who have travelled outside their province of residence in the past three years and plan to travel again in the next five years.

Travel tips

Meanwhile, CAA is encouraging Canadians to stay informed and make travel decisions based on reliable information.

Travellers should understand that an “avoid non-essential travel” advisory signals changing safety conditions and may limit access to assistance.

These advisories can also affect travel insurance coverage, particularly if a policy was not purchased before conditions worsened.

Experts also recommend reviewing cancellation and rebooking policies, staying connected to updates from Global Affairs Canada, registering with the Registration of Canadians Abroad service, and relying on trusted sources rather than misinformation online when planning or adjusting travel plans.

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