Vancouver, Toronto, and Montreal Are Favourite for Domestic Trips as Canada Travel Trend is Changing, US Tourism Declines Amid Weak Currency – Travel And Tour World

As the 2024 holiday season approaches, Canadian travel trends reveal significant shifts in patterns compared to the last two years. With the pent-up demand from the pandemic easing and economic factors such as inflation and a weaker Canadian dollar coming into play, more Canadians are opting for domestic travel. Meanwhile, international trips, particularly to the United States, are seeing a decline. This shift marks a stabilization of travel behaviors following the post-pandemic boom.

Post-Pandemic Travel Trends Stabilize
The past two years saw a dramatic rebound in travel as Canadians eagerly seized the opportunity to venture abroad after COVID-19 restrictions lifted. However, 2024 has seen a slowdown in international travel.

Statistics back this up: Canadian flights to the U.S. are expected to drop by 2.5% this December compared to the previous year, according to aviation data from Cirium. In contrast, domestic flight capacity is rising by nearly 10%, signaling a shift in focus toward exploring destinations within Canada.

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Economic Factors Shape Travel Decisions
The economic climate is a significant factor influencing travel choices. Although inflation has eased somewhat, the cost of living, housing, and high-interest rates continue to weigh heavily on Canadians’ wallets. These economic pressures have led many travelers, particularly Millennials and Gen Zers, to rethink their holiday plans.

Ramzi Rahbani, vice-president at FlightHub, noted that financial constraints are pushing Canadians to prioritize domestic travel over international trips. Survey data shows that more than half of Canadians plan to forgo travel altogether during the holidays. Those who do plan trips are budgeting conservatively, with 22% allocating between $500 and $1,000, while a quarter of respondents are setting aside $1,000 to $2,000.

The Weaker Canadian Dollar
The Canadian dollar, hovering near its lowest value in years at 72 cents USD, has further deterred travel to the United States. Proposed U.S. tariffs on Canadian imports have added to the currency’s weakness, making trips south of the border more expensive.

This impact is particularly felt by snowbirds—retirees who traditionally spend winters in Florida, Arizona, or California. Travel expert Jill Wykes emphasized that the weaker dollar has significantly raised the cost of long-term stays in these destinations, prompting many to reconsider their plans.

Domestic Travel on the Rise
As international travel wanes, domestic tourism is booming. Increased flight capacity within Canada has driven down airfares by 20% compared to last year, making domestic travel an attractive option. This trend aligns with the holiday priorities of many Canadians, with family visits cited as the top reason for travel during the season.

Popular domestic destinations include Vancouver, Toronto, and Montreal, where festive markets and winter activities draw both local and out-of-province visitors. The affordability and ease of domestic travel are helping more Canadians rediscover the charm of exploring their own country.

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International Travel Patterns Evolve
While domestic travel surges, certain international destinations remain popular among specific demographics. Cities like Manila and New Delhi have seen high booking volumes from Canadians between December 20 and January 1, primarily driven by family reunions. For those still venturing south, New York City remains a perennial favorite, along with sun-soaked destinations like Florida and California, albeit with lower demand than previous years.

Leisure travel to traditional beach destinations has plateaued, reflecting broader shifts in priorities and spending habits. Richard Vanderlubbe of Tripcentral.ca described travel habits as “stabilized,” a stark contrast to the erratic swings in demand seen during and immediately after the pandemic.

The Role of Millennials and Gen Z Travelers
Millennials and Gen Z now make up over half of all air passengers in Canada, according to FlightHub. These younger travelers are particularly cost-conscious, often opting for budget-friendly trips and focusing on experiences that align with their values. Family visits top the list of travel motivations, followed by practical considerations such as affordability and proximity.

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Despite their financial constraints, these demographics are reshaping travel norms by emphasizing sustainability and meaningful experiences over lavish vacations. Their preferences are influencing trends in both domestic and international tourism.

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