Key Takeaways
- Canadian leisure bookings to the U.S. fell 40% in February 2025 compared to February 2024, per March 5, 2025, report.
- Key causes include U.S. tariffs on Canadian goods, a weak Canadian dollar (around 70 cents US), and shifting consumer values.
- Airlines like Air Canada, WestJet, and Sunwing adjusted or canceled U.S.-bound flights, with some focusing on Mexico, the Caribbean, and Europe.
The travel industry is witnessing a notable shift in patterns, most prominently marked by a 40% decline in leisure bookings by Canadians to the United States 🇺🇸 in February 2025 compared to the same month in 2024. This decrease, revealed by the Flight Centre Travel Group Canada on March 5, 2025, signals a striking change. Various political, economic, and societal factors appear to be shaping the choices of Canadian travelers. This shift has implications not just for the Canadian tourism sector but also for the U.S. economy, particularly in areas dependent on Canadian visitors.
Key Factors Behind Declining Canadian Travel to the U.S.
Several reasons contribute to the significant drop in Canadian travel to the United States. Political tensions, economic concerns like currency exchange, and changing values among Canadian consumers seem to be at the heart of this trend.
Political Tensions
The introduction of tariffs on Canadian goods by U.S. President Donald Trump on March 4, 2025, at 12:01 a.m., stirred outrage among Canadians. This policy has been perceived as a betrayal by many and influenced travel decisions. For some Canadians, choosing not to visit the U.S. can be seen as a symbolic act of protest against these measures. The broader tension between these nations on political and economic fronts has undoubtedly left its mark on travelers’ preferences.
Economic Factors
The unfavorable exchange rate is another significant factor. For several months leading up to March 2025, the Canadian dollar hovered around 70 cents US. This makes trips to the United States 🇺🇸 considerably more expensive for Canadians. With limited purchasing power, many find U.S. travel less attractive, choosing instead to look for destinations where their money stretches further.
Shift in Consumer Preferences
A broader societal shift in values also shapes travel choices. Amra Durakovic, a spokeswoman for Flight Centre, noted Canadians now prefer destinations aligned with their political and social beliefs. She stated, “Canadians are making those choices to travel to destinations that really align more with our values.” This evolution in mindset is prompting many to intentionally steer clear of the U.S. and explore different locations.
Trip Cancellations
The trend becomes even clearer when examining trip cancellations. Flight Centre reported that one in five customers canceled their U.S. trips in the three months leading to March 2025. Cancelations on this scale represent not only a change in how Canadians view the U.S. but also an economic hit to the tourism industry.
How Airlines and the Travel Sector are Adapting
The downturn in bookings has forced airlines and travel companies to respond strategically. Major carriers are already adjusting their routes and offerings in light of declining demand for U.S. destinations.
- Air Canada: On February 15, 2025, Air Canada reduced flights to destinations like Florida, Las Vegas, and Arizona by 10%, beginning in March 2025. These locations, heavily popular during spring break, have been particularly impacted, underscoring the sharp decline in demand.
- WestJet: By March 5, 2025, WestJet had shifted its focus from U.S. destinations to other sunspots such as Mexico and the Caribbean. This transition signals a clear response to changing consumer preferences.
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Flair Airlines: According to data from the aviation analytics firm Cirium, flights bound for the U.S. on Flair Airlines have dropped by 24% year-over-year for March 2025.
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Air Transat: Travel on Air Transat routes to U.S. destinations is also down, marking a 12% decline for March 2025 compared to the same period in 2024.
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Sunwing Airlines: Taking it a step further, Sunwing Airlines canceled all of its U.S.-bound flights during the current period. This drastic measure highlights the steep impact on demand.
Exploring New Destinations
As Canadians veer away from U.S. destinations, alternative holiday spots are emerging as winners. Both international and domestic travel options have gained popularity as travelers seek replacements that cater to their financial realities and social values.
- Top International Picks: According to Flight Centre, Canadians are booking top sun destinations such as Tulum (Mexico 🇲🇽), the Dominican Republic 🇩🇴, Jamaica 🇯🇲, Saint Lucia 🇱🇨, and Caribbean cruises in increasing numbers. These locations offer sunny weather and a welcoming atmosphere at more affordable exchange rates compared to the United States 🇺🇸.
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European Travel Surge: Europe has also benefitted from the change in Canadian preferences. Air Canada, WestJet, Air Transat, and Air France have introduced more flights to destinations like Portugal 🇵🇹, Italy 🇮🇹, Spain 🇪🇸, and Greece 🇬🇷. These locations are attracting Canadians looking to avoid the U.S. while still enjoying cultural and scenic experiences.
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Asian Destinations Rising: Japan 🇯🇵 is becoming a favored destination, especially among Canadian skiers, due to the favorable exchange rate against the yen. Thailand 🇹🇭 has further captured interest, partly influenced by its value for Canadian dollars and a recent focus brought on by the popular TV show “White Lotus”.
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Domestic Preferences Expected: While not explicitly detailed in the provided data, this trend suggests a likely increase in trips within Canada 🇨🇦 itself. Canadians who wish to avoid the costs associated with international travel may choose to explore their own country.
Broader Implications of the Decline
The 40% decline is not confined to individuals—it has ripple effects on industries and economies.
Impact on U.S. Tourism
The economic consequences for U.S. tourism are profound. The U.S. Travel Association highlighted earlier in 2025 that a mere 10% drop in Canadian visitors could translate into two million fewer visits, $2.1 billion in lost spending, and 14,000 job losses. With the current 40% decline, these numbers are expected to escalate significantly, further impacting industries reliant on Canadian tourism.
Flight Routes and Load Capacity
Canadian airlines may introduce more changes. For instance, reduces or entirely dropped routes are potential options as long as traveler volumes remain low. Consumers might also see higher ticket prices for popular non-U.S. routes because of increased demand for those destinations.
Real Estate Influence
We’re also seeing changes in real estate trends among Canadians owning property in the U.S., particularly in Florida 🇺🇸. Rising living costs (due to the weak Canadian dollar) are prompting a surge in home sales, while favorable currency conversion rates for home sales might further incentivize this decision.
The Road Ahead
The impact of political tensions, consumer preferences, and economic challenges reflects a dynamic change in Canadian travel behavior. This trend shows no immediate signs of reversal. As Americans impose further trade tariffs and spring break approaches, the demand for U.S. travel in March and April is predicted to fall even further. In response, we may see even more cutbacks in U.S. flight offerings by Canadian airlines.
However, this situation also unveils new opportunities for other travel markets and signals rising demand for locations beyond the U.S. Canadian travelers are more open to exploring distant destinations in Asia, Europe, and South America. Meanwhile, the travel industry has rapidly adapted to pivot its offerings to meet these changing preferences.
The story of Canadian travel in 2025 is about more than just a decline in U.S.-bound trips—it illustrates the power politics, economics, and consumer behavior have over the travel landscape. It is also a reminder of how interconnected international travel trends are with broader global developments. As VisaVerge.com has pointed out, tracking and understanding these shifts is essential for both travelers and policy-makers moving forward.
For further details about Canadian travel requirements and updates, readers can refer to Government of Canada’s official travel website. This resource offers travelers the most up-to-date and accurate information regarding international travel guidelines.
Learn Today
Tariffs → Taxes or duties imposed by a government on imported goods, impacting trade and economic relations between countries.
Exchange Rate → The value of one country’s currency in relation to another’s, influencing purchasing power and travel expenses.
Consumer Preferences → Trends in choices and behaviors of individuals based on values, beliefs, or economic considerations.
Flight Capacity → The total available seats on an airline’s flights, often adjusted based on demand for specific destinations.
Ripple Effects → Indirect, widespread consequences of an event or change, influencing various interconnected sectors or industries.
This Article in a Nutshell
Canadian travel to the U.S. dropped 40% in February 2025, driven by political tensions, a weak dollar, and shifting consumer values. Canadians now favor destinations like Mexico, Europe, and Asia. Airlines are cutting U.S. routes while expanding alternatives. This shift reflects a broader global travel trend shaped by currency and conscience.
— By VisaVerge.com
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