Rising travel costs and economic uncertainty are prompting more Canadians to consider vacations closer to home, according to a new survey of travel advisors affiliated with Travelsavers Canada.
The survey, conducted between April 22 and May 9, highlights that 62% of advisors say their clients are most concerned about the high cost of travel.
Unfavourable exchange rates (46%), geopolitical instability (38%), and economic worries (36%) are also weighing on travel decisions.
“Even with economic and geopolitical concerns, Canadians are still prioritizing travel,” said Jane Clementino, Senior Vice President and General Manager of TRAVELSAVERS Canada.
“Advisors are essential in this environment. They bring expertise, flexibility, and access to value-driven options that help clients feel confident and excited about their plans no matter their budget.”
Domestic Destinations in Demand
Canada is seeing a surge in popularity as a summer vacation destination.
While Italy topped the list of summer bookings at 49%, Canada followed closely at 46%, tied with Portugal and ahead of destinations like Ireland (24%) and the Riviera Maya (21%).
Nearly half (49%) of travel advisors said they are most often recommending Canada to clients, citing its accessibility and value in a time of economic caution.
“We’re seeing a clear shift toward trusted, accessible destinations and Canada is leading the way,” Clementino said.
“Whether it’s the appeal of exploring our own backyard or the flexibility domestic travel offers, advisors are confidently proposing Canada as their first choice for summer travel.”
Budget-Conscious Travel Choices
To stretch travel dollars, Canadians are turning to a variety of cost-saving strategies.
Forty-three percent of advisors say clients are selecting more affordable destinations, while 41% report clients are redeeming loyalty points or cutting back on the number of trips.
Flexibility on travel dates (35%) and choosing to vacation within Canada (29%) are also common tactics.
Lower Expectations for Summer Sales
While Canadians are still booking travel, overall summer sales have dipped.
Just 29% of advisors report that bookings are up from last year, while 52% say sales are down. Nineteen percent report sales are unchanged.
Expectations for 2025 sales overall have also cooled.
In the most recent survey, 35% of advisors expect sales to rise this year, while 44% predict a decline. That marks a significant shift from the previous Travelsavers Canada survey conducted last fall, when 81% expected higher sales in 2025.
Survey Results
2025 Sales (results from April/May 2025)
- 27% predict sales will increase somewhat
- 8% predict sales will increase significantly
- 21% predict sales will stay the same
- 33% predict sales will decrease somewhat
- 11% predict sales will decrease significantly
2025 Sales (results from October/November 2024)
- 54% predict sales will increase somewhat
- 27% predict sales will increase significantly
- 15% predict sales will stay the same
- 4% predict sales will decrease somewhat
Summer Bookings
- 8% up 10% or more from last summer
- 21% up between 1% and 9% from last summer
- 19% the same as last summer
- 33% down between 1% and 9% from last summer
- 19% down 10% or more from last summer
Client Concerns
- 62% high cost of travel
- 46% unfavourable exchange rates
- 38% geopolitical issues
- 36% lack of consumer confidence in the economy
- 35% inflation/rising prices
Vacation Budgeting
- 43% selecting less expensive destinations
- 41% using loyalty points to pay for travel
- 41% taking fewer trips
- 35% being flexible with travel timing for lower fares
- 29% vacationing in their home country
Top Summer Travel Destinations
- 49% Italy
- 46% Canada
- 46% Portugal
- 24% Ireland
- 21% Riviera Maya
Top Advisor Recommendations for Summer Travel
- 49% Canada
- 46% Portugal
- 44% Italy
- 24% Ireland
- 24% Spain
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