The 2025 Blue Cross Travel Study reveals that Canadian travellers are adapting their habits to consider recent external factors, and that the new generation of adventure lovers is driving the change towards a more conscious future of travel.
“Canadians are rethinking how they travel, not whether they travel,” says Tim Bishop, Managing Director, Blue Cross of Canada. “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.”
Cost pressures and a weak dollar are reshaping travel plans
The financial strain of travel is more pronounced than ever, according to the Study, with 81 per cent of Canadian travellers reporting having changed their travel habits due to rising costs – a 12 percentage-point increase from last year. Many young travellers, who are just beginning to explore the world independently, are forming habits in an economic landscape that demands adaptability. Notably, most (90%) Gen Z respondents report adapting to increased prices, compared to 70 per cent of Boomers.
“As financial pressures continue to impact how Canadians travel, the weak dollar is adding to 2025 budget considerations, contributing to how decisions are made for both destination and duration,” says Bishop.
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%) 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%) or shortening their trips (22%), while one-in-ten (12%) 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.
Geopolitical uncertainty, over-tourism and climate change are driving informed travel decisions
Beyond financial concerns, Canadians are also taking geopolitical uncertainty into consideration when thinking about their next trip. Following the American election, nearly half of Canadians (47%) say they are less likely to visit the United States in the next 12 months.
Over-tourism 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%) of respondents – notably, Gen Z (58%) and Millennial (55%) 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. Amid these evolving trends, many Canadians still perceive travel as a catalyst for good. Most respondents (83%) 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. 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%), shifting travel dates to reduce risk (23%) or avoiding certain destinations altogether (20%), Canadians are increasingly considering climate change as part of their informed decision-making.
The new generation of Canadians is paving the way towards a new era of travel
The future of travel is evolving far beyond traditional sightseeing, with Canadians factoring in both cost-coping mechanisms and personal beliefs. Younger travellers, whose habits were shaped by post-pandemic challenges, are now taking a more agile, risk-aware and conscious approach to how they travel.
“These findings reinforce the need for more assistance-focused travel insurance,” says Bishop. “Canadians want resources to support their shifting travel needs, given constantly changing risks. A personalized travel insurance and assistance approach can help navigate unexpected events and manage associated costs due to health or other issues, whether out of province or out of country. Blue Cross is proud to be a leader in travel insurance, client-focused support and travel assistance to meet the needs of modern Canadian travellers.”
To learn more about the Study, please visit www.bluecross.ca/travelstudy.
About the Blue Cross Travel Study
To create the 2025 Blue Cross Travel Study, Research + Knowledge = Insight, an independent research company, conducted an online survey in November 2024. The comprehensive sample for this survey included 2,047 adult Canadians. The study has a margin of error of plus or minus 2%, 19 times out of 20.
