Canadians remain enthusiastic about travelling, but rising costs, global instability and changing attitudes toward the United States are reshaping where and how they plan their trips.
A new national survey from the Canadian Automobile Association (CAA) suggests that while travel demand remains strong, many Canadians are becoming more cautious in their decision-making. According to CAA’s Travel Wise National survey, 51 per cent of Canadians say geopolitical and economic factors — including instability abroad, perceptions that the U.S. is less welcoming, and increasing travel costs — are influencing their travel choices.
The findings indicate that Canadians are still eager to explore new destinations but are placing greater emphasis on safety, affordability and value.
Travel Plans Shift Away from the United States
The survey suggests travel patterns among Canadians are evolving. In 2025, only 22 per cent of respondents said they planned to visit the United States, marking an 11-percentage-point decline compared with 2024. Instead, many travellers are choosing to remain within Canada or explore destinations outside North America.
Domestic travel is gaining popularity, with 40 per cent of Canadians saying they plan to travel within the country.
Industry observers say the shift reflects both economic considerations and broader geopolitical concerns. A stronger focus on domestic travel could provide a boost to Canada’s tourism sector as travellers look for destinations closer to home.
“Canadians are adventurous by nature, but today’s travellers are having to make thoughtful decisions,” says Kaitlynn Furse, Director of Corporate Communications. “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.”
Many Travellers Still Skip Insurance
Despite increasing awareness of travel risks, the survey found that many Canadians are still travelling without insurance — particularly when travelling within Canada.
According to the survey, 64 per cent of respondents said they did not have travel insurance during their most recent domestic trip.
The results suggest a widespread misconception that travelling within Canada carries little financial or medical risk. Many travellers assume that provincial healthcare plans will provide sufficient coverage when travelling in another province.
“Recent stories have highlighted Canadians facing unexpected medical bills, trip interruptions, and emergency expenses while travelling within Canada, often because they didn’t realize their regular provincial health coverage or credit card benefits had limits,” says Furse. “If something were to happen, provincial healthcare only partially covers you outside of your home, and sometimes, not at all, covering only basic emergency medical services when travelling in another province.”
Among those who travelled without insurance, 44 per cent believed coverage was unnecessary, while 29 per cent assumed their provincial health plan would fully protect them.
“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.”
Understanding Travel Risks Abroad
CAA says travellers should stay informed about global conditions, particularly as geopolitical tensions and safety concerns can change quickly.
Recent incidents in destinations including Cuba, Mexico and parts of the Middle East have highlighted the importance of monitoring government travel advisories. Advisories that recommend avoiding non-essential travel typically signal rapidly changing conditions where assistance may be limited.
Travellers who ignore government advisories may also face limitations in their travel insurance coverage, including reduced access to medical support or emergency evacuation services.
CAA advises travellers to review cancellation policies and refund options for flights, accommodations and other bookings before departure. Understanding the limits of credit card protections and employer or pension travel benefits can also help travellers avoid unexpected costs.
The organization also encourages Canadians to register with Global Affairs Canada’s Registration of Canadians Abroad service and rely on official government sources and verified news outlets for travel guidance.
Survey Methodology
The online survey was conducted by DIG Insights between Sept. 29 and Oct. 8, 2025. It included 2,021 Canadian travellers aged 25 to 64 who have travelled outside their province in the past three years and plan to travel again within the next five years.
Based on the sample size, the results have a margin of error of plus or minus two percentage points at a 95 per cent confidence level.
CAA South Central Ontario, one of nine auto clubs across Canada, provides roadside assistance, travel services and insurance to more than 2.5 million members. The organization says the survey underscores the need for travellers to balance their desire to explore with careful planning in an increasingly uncertain global environment.
Evan McKenzie is a contributor at Vaughantoday.ca, covering a wide range of topics including local news, politics, business, technology, sports, entertainment, and lifestyle. He focuses on clear, balanced reporting that helps readers stay informed about current events and issues that matter to their communities. His work aims to provide useful information, timely updates, and relevant stories presented in an accessible and reader-friendly way.