Mar 24, 2026
Canadians are still showing a strong appetite for travel, but rising costs and global uncertainty are shaping where they choose to go.
That’s according to a new survey from CAA South Central Ontario, in which more than half of Canadians say geopolitical and economic factors are influencing their travel decisions. These range from higher travel prices to concerns about global instability and shifting attitudes toward visiting the United States.
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“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,” said Kaitlynn Furse, director of corporate communications at CAA South Central Ontario, in a statement.
Canadians reconsidering U.S. travel
According to the survey from CAA, 51% of Canadians say economic or geopolitical factors are affecting where they plan to travel.
One of the most notable changes is declining interest in trips to the United States. The research found 22% of Canadians planned to visit the U.S. in 2025, down from 33% the previous year.
Instead, more travellers are choosing to stay within Canada. About 40% of respondents said they plan to explore destinations closer to home, while others are considering trips to destinations outside North America.
The shift appears to reflect a combination of factors. Rising travel costs remain a major concern for many households, while global political tensions and changing perceptions of travel destinations are also influencing decisions.
Despite these changes, Canadians remain enthusiastic about travel overall. The survey focused on Canadians aged 25 to 64 who have travelled outside their home province in the past three years and expect to travel again within the next five years.
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Many travellers still skipping insurance
The survey also highlights a financial risk many travellers may overlook.
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According to the findings, 64% of Canadians said they did not purchase travel insurance for their most recent trip within Canada.
Many appear to assume that travelling domestically carries little financial risk. Among those who travelled without insurance, 44% said they believed coverage wasn’t necessary, while 29% said they expected their provincial health plan to provide enough protection.
However, according to CAA, provincial health coverage often has limits outside a traveller’s home province. While emergency medical services may be covered, other costs, such as transportation, accommodation changes or trip interruptions, may not be fully reimbursed.
"One of the biggest misconceptions we see is the idea that travelling within Canada comes with less risk," says Furse. "Unexpected medical costs, trip interruptions and emergencies can happen anywhere, and many travellers are surprised to learn they're not fully covered."
The findings suggest Canadians remain eager to travel, but many are becoming more selective about their destination, as well as more mindful of the financial risks that can come with a trip.
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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.
