Canadians continue to seek U.S. alternatives, turn to AI for savings: study

Geopolitical instability and rising costs are reshaping where and how Canadians travel, according to the 2026 Blue Cross Travel Study released this week. 

Despite these challenges, Canadians remain committed to exploring, with many turning to artificial intelligence to plan more cost-effective trips.

"Canadians are not travelling less – they're travelling smarter," says Sylvain Charbonneau, president and CEO, Quebec and Ontario, Blue Cross, in a press release. 

"We are seeing a shift toward using the latest AI tools to plan travel with greater awareness and flexibility, showing that Canadians' desire to explore remains strong even in an uncertain world."

The study, conducted by Research + Knowledge = Insights in October 2025, surveyed 2,049 adult Canadians with a margin of error of plus or minus 2%, 19 times out of 20.

AI reshaping trip planning

Nearly half (49%) of Canadian travellers now use AI to plan trips, particularly for comparing prices, finding destinations and building itineraries, the study shows. 

Adoption is highest among younger travellers, with 70% of Gen Z and 63% of Millennials using AI tools. 

However, usage is growing across generations, with 42% of Gen X and 23% of Boomers also turning to AI for travel planning.

As global uncertainty drives up travel costs, particularly in the United States, Canadians are using AI to make informed choices and stay within budget. 

The majority (87%) report cutting back on travel expenses such as shopping, trip length and premium upgrades, and are using digital tools to find more affordable alternatives.

U.S. travel intentions decline sharply

More than three-quarters (76%) of Canadians are less likely to travel to the U.S. in 2026 due to concerns about political tensions, trade issues and unfavourable exchange rates, the study shows. 

This represents a sharp increase from 2025, when just under half (47%) reported the same sentiment.

Boomers are especially hesitant, with more than half (54%) cancelling all U.S. travel plans in 2026, up from only 12% last year. 

Gen Z travellers remain more optimistic, with 62% expecting sentiment toward U.S. travel to improve over the next five years.

Despite reduced U.S. travel, Canadians' determination to travel remains strong.

Among those avoiding the U.S., 95% plan to explore elsewhere, including destinations within Canada (68%), Mexico and the Caribbean (38%) and overseas locations (35%).

Saskatchewan travellers prioritize domestic destinations

Saskatchewan residents are among Canada's most budget-conscious travellers. 

The research found more than three-quarters (77%) plan to stay within Canada over the next year, with 70% visiting another province and 32% exploring destinations within Saskatchewan. 

Only 17% intend to travel to the U.S., the lowest rate in the country.

Travel insurance adoption grows

The study found 86% of Canadians report having some form of travel insurance, whether purchased directly (56%) or through workplace plans and credit cards (30%). 

Younger Canadians are increasingly prioritizing coverage, with 42% of Gen Z and 47% of Millennials now considering travel insurance a key part of planning, up from 39% and 43%, respectively, last year.

Awareness of potential medical costs abroad remains high, with 83% of Canadians recognizing that an overnight emergency room visit could cost more than $3,600 CAD.

"The key takeaway here is that travellers are thinking more intentionally about their trips," says Charbonneau. 

"Canadians are weighing the financial and emotional factors that make travel rewarding, and AI tools are transforming how they plan. Access to increasingly sophisticated technology is helping travellers make more confident decisions – finding the right destinations, balancing budgets and maximizing every experience."

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