by Natasha Lair
Last updated: 7:00 AM ET, Thu December 4, 2025
It's no secret that Canadians are adjusting their travel habits in response to rising costs and global uncertainty.
According to a recent Blue Cross Travel Study, travellers are increasingly relying on artificial intelligence (AI) to plan trips while favouring domestic and international alternatives.
“Canadians are not travelling less – they're travelling smarter,” said Sylvain Charbonneau, President & CEO, Quebec & Ontario Blue Cross.
“We are seeing a shift toward using the latest AI tools to plan travel with greater awareness and flexibility, showing that Canadians' desire to explore remains strong even in an uncertain world.”
AI Becoming a Mainstream Trip-Planning Tool
AI is now a key part of the travel planning process for nearly half of Canadians (49%). Younger travellers lead the trend—70% of Gen Z and 63% of Millennials use AI for comparing prices, selecting destinations, and building itineraries. But uptake is growing across all generations, including 42% of Gen X and 23% of Boomers.
With U.S. travel costs rising, 87% of Canadians say they are cutting back on expenses such as shopping, trip length, and upgrades, and are using digital tools to find more affordable options. The study suggests AI is helping Canadians personalize their trips and stay on budget.
Rising U.S. Hesitancy—but Not Less Travel
The report found that 76% of Canadians are less likely to travel to the U.S. in 2026, up sharply from 47% the previous year.
Boomers show the greatest shift: more than half (54%) say they have cancelled all U.S. travel plans for 2026, compared with just 12% last year. Gen Z, meanwhile, remains more optimistic, with 62% expecting attitudes toward U.S. travel to improve over the next five years.
Still, Canadians plan to travel elsewhere. Of those avoiding the U.S., 95% intend to explore other destinations, including Canada (68%), Mexico and the Caribbean (38%), and overseas locations (35%).
Insurance Seen as Essential
Travel protection remains a priority. Eighty-six percent of Canadians say they have some form of travel insurance, and younger travellers are increasingly building it into their planning. Forty-two percent of Gen Z and 47% of Millennials now consider insurance a key component of travel prep.
Awareness of potential medical costs abroad remains high—83% recognize that a single overnight emergency room visit could exceed CAD$3,600.
“The key takeaway here is that travellers are thinking more intentionally about their trips,” Charbonneau said.
“Canadians are weighing the financial and emotional factors that make travel rewarding, and AI tools are transforming how they plan. Access to increasingly sophisticated technology is helping travellers make more confident decisions – finding the right destinations, balancing budgets and maximizing every experience.”
The 2026 Blue Cross Travel Study is based on an online survey conducted in October 2025 with 2,049 adult Canadians.
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