Canadians axe U.S. travel plans as trade war drags on

As things remain tense between Canada and the United States, there is now proof Canadians are changing their travel plans to avoid America.

Amra Durakovic with Flight Centre tells 1130 NewsRadio they started noticing Canadians cancelling their trips to the U.S. in November when the Canadian dollar was low and around the same time the U.S. presidential election took place.

She explains that from November 2024 to February of this year, there has been a 20 per cent increase in cancellations from Canada to the U.S., and February year-over-year, there has been a 40 per cent drop in bookings.

“What we’ve seen this last month, that’s something we’ve never seen before. This is certainly quite a significant decrease,” Durakovic said.

Durakovic adds that Canadians are still travelling; they’re just leaving the U.S. off the map.

“What we have noticed is Canadians are not cancelling their travel trips altogether; they’re just looking to alternative destinations. Europe is definitely a huge contender, and surprisingly [so has] Southeast Asia and Asia in general, specifically Japan has been a standout destination because our loonie holds very strong against the Yen right now.”

She says the United Kingdom is a hot spot, as well as Portugal, Switzerland, the Netherlands, and Italy.

“Our data shows that Europe is increasing in bookings,” Durakovic said.

She points out that both Air Canada and WestJet are expanding routes into Europe.

“I’m sure this summer we’re going to see a lot more Canadians travelling to Europe.”

Air Canada says these travel changes are fluid, and it’s monitoring the situation.

WestJet tells 1130 NewsRadio that it’s seeing people make different travel plans.

“We have observed a shift in bookings from the U.S. to other sun destinations such as Mexico and the Caribbean among Canadian travellers,” WestJet said. “The airline remains focused on knowing where people want to go, and we will continue to fly where there is demand. Reciprocal visitation from both Canadian and US tourists is important for the tourism industry, as it drives economic stimulus on both sides of the border.”

Durakovic isn’t sure how much longer the trend may last.

“It is too early to tell. It’s such a fluid situation. But what I do hope from all of this, in terms of travel behaviour, is that Canadians will really start to look at other destinations because there’s a whole world out there,” she said.

“I will say to travelling, Canadians are fairly conservative. Our top three destinations come as no surprise: Mexico, Canada and the U.S. So, maybe this is what we needed … to explore new places.”

For some people, going to the U.S. is a part of their job, like Durakovic, who was in New York in November.

“It was very expensive. That was certainly something that stood out for me. I flew from Billy Bishop Airport, via Porter Airlines, into Newark. Hopped in a cab and headed into downtown Manhattan. For those who don’t know, it’s about a 15-minute taxi ride. By the time I paid for the new toll and left a tip, it came to $135 U.S.,” she explained.

“I’m not sure how many travellers can afford that.”

Durakovic says there is also a segment of the population who are booking vacations to Quebec and Atlantic Canada, where tours and car rentals are booking up quickly.

“On average, you should be booking a minimum of 90 to 120 days in advance to get the best travel deal.”

She says if you’re interested in travelling this summer, book your vacation right now.

“The longer you wait, the more you’re going to pay.”