Weak dollar, U.S. election & overtourism reshaping how Canadians travel: study

Canadians are rethinking how they travel this year, not whether they travel, according to a new Blue Cross Travel Study. 

The study, released Tuesday (Feb. 25), surveyed 2,072 Canadian adults who have either travelled in the past 12 months, or plan to travel in the next 12 months (or both).

The research comes as 2025 sees increased financial pressures, geopolitical uncertainty, rising overtourism and climate change concerns.

Cost pressures and a weak dollar, for one, are reshaping travel plans, the survey shows.

The financial strain of travel is more pronounced than ever, with 81 per cent of Canadian travellers reporting having changed their travel habits due to rising costs – a 12 per cent increase from last year.

Many young travellers are forming habits in an economic landscape that demands adaptability.

Notably, most (90 per cent) Gen Z respondents report adapting to increased prices, compared to 70 per cent of Boomers.

“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. With this mindset, Canadians are prioritizing flexibility and peace of mind with the goal for them to travel with greater confidence,” said Tim Bishop, managing director of Blue Cross Canada, in a press release. 

The study shows that 36 per cent of travellers are already reducing the number of trips they take.

With affordability top-of-mind, more than one-third (35 per cent) of travellers say they are seeking less expensive accommodations or destinations, while 31 per cent report taking advantage of off-peak seasons to save money.

Some are choosing destinations closer to home (25 per cent) or shortening their trips (22 per cent), while one-in-ten (12 per cent) travellers say they are shifting to alternative transportation, such as buses or trains, to offset expenses.

This demonstrates that Canadians remain committed to travel, finding alternative ways to make their adventures work in today’s economy, the survey says.

Impact of U.S. election, overtourism 

Beyond financial concerns, Canadians are also taking geopolitical uncertainty into consideration when thinking about their next trip.

Following election of U.S. President Donald Trump, nearly half of Canadians (47 per cent) say they are less likely to visit the United States in the next 12 months, the survey says. 

Overtourism is also a concern, with 45 per cent of Canadian travellers having experienced what could be considered anti-tourist sentiment, such as daily visitor limits or short-term rental restrictions in major areas.

Recognizing this, some are opting for a more conscious approach: nearly half (47 per cent) of respondents – notably, Gen Z (58 per cent) and Millennial (55 per cent) groups – say they have changed their travel plans due to concern from local communities about potential challenging impacts of tourism, such as rising cost of living and social pressures.

Another 20 per cent are avoiding over-touristed areas altogether and 19 per cent are making a conscious effort to support local businesses when travelling, the survey shows.

Amid these evolving trends, many Canadians still perceive travel as a catalyst for good. Most respondents (83 per cent) believe travel helps build positive connections with local communities, whether through supporting local businesses or respecting cultural traditions.

Above all else, climate change is the global development most likely to influence travel habit shifts, with 65 per cent of travellers adjusting their plans due to climate change, the survey shows.

This is most pronounced among the Gen Z group, with 77 per cent factoring climate concerns into their choices. Whether choosing destinations with less extreme weather (27 per cent), shifting travel dates to reduce risk (23 per cent) or avoiding certain destinations altogether (20 per cent), Canadians are increasingly considering climate change as part of their informed decision-making, the survey says.

“These findings reinforce the need for more assistance-focused travel insurance,” stated Bishop. “Canadians want resources to support their shifting travel needs, given constantly changing risks.”

To learn more about the study, click here. 

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