Dec 17, 2025
Many Canadians are changing their travel plans for 2026, with rising prices and geopolitical uncertainty influencing where they go and how they plan to get there.
A new national survey from Blue Cross finds that while three-quarters of Canadians are less likely to visit the United States next year, overall travel demand remains strong.
The report shows that 95% of Canadians avoiding U.S. travel still plan to explore elsewhere — whether within Canada, in Mexico or the Caribbean or overseas. They are also adopting a more practical approach to trip planning, leaning on digital tools and adjusting budgets to keep travel attainable despite higher costs.
“Canadians are not travelling less – they’re travelling smarter,” Sylvain Charbonneau, president & CEO, Quebec & Ontario Blue Cross, said in a statement. “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.”
Canadians rethink destinations as prices and uncertainty rise
The sharp pullback from U.S. travel reflects a mix of economic and geopolitical concerns. According to the study, 76% of Canadians are less likely to travel south of the border in 2026, up dramatically from 47% last year.
High travel costs, a weaker exchange rate and ongoing political tensions are all shaping destination decisions.
Boomers are the most cautious group, with more than half cancelling all U.S. trips for next year. Younger travellers appear more optimistic: 62% of Gen Z expect sentiment toward U.S. travel to improve over the next five years, even if they are adjusting plans in the near term.
At the same time, a strong majority of Canadians are choosing destinations closer to home, with 68% planning trips within Canada and growing interest in provincial and regional tourism. Mexico, the Caribbean and overseas destinations are also attracting demand as travellers look for clearer value elsewhere.
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Get started todayAI fast becoming a key travel planning tool
One of the most notable shifts in this year’s study is how Canadians are using AI to mitigate rising costs. Nearly half of Canadian travellers (49%) now rely on AI tools to compare prices, build itineraries, evaluate destinations and optimize travel budgets. Adoption is highest among Gen Z and millennials, but usage is rising steadily across Gen X and boomers as well.
Blue Cross says this trend reflects a broader move toward more intentional planning. As 87% of Canadians trim discretionary travel spending — including shorter trips, reduced shopping and fewer premium upgrades, AI tools are helping them stretch their dollars and feel more confident in their choices.
"The key takeaway here is that travellers are thinking more intentionally about their trips," said 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."
Travel confidence remains strong
While travellers are being more selective and cost-conscious, their desire to travel has not wavered. The study shows that 86% of Canadians have some form of travel insurance, either purchased directly or through workplace and credit card benefits.
Younger Canadians in particular are placing greater emphasis on financial protection, with a growing awareness of the potential medical costs abroad.
Together, these findings suggest Canadians are adapting rather than withdrawing when it comes to travel and vacations. The shift away from U.S. travel, the rise of AI-assisted planning and the emphasis on financial protection all point toward a more discerning travel market in 2026, shaped by cost pressures but still driven by a strong desire to explore.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
