Canadians Flock to Domestic Travel Amid US Tensions

Strategic Insights -

With the current tensions between Canada and the US, Canadians are opting for domestic travel over international trips. The industry buzz is positive, with travel reservations across Canada appearing to be equal to or higher than last year. The trade war, plummeting exchange rate, and rising travel insurance costs are making domestic travel more appealing. Canadians are rethinking their travel plans, choosing to explore their own country instead of heading south of the border.

Key Takeaways:

  • Canadians are choosing not to travel to the US, citing unfavorable exchange rates, anti-Canadian sentiment, and unpredictable US border policies.
  • Domestic travel bookings are on the rise, with hotel bookings, campsite reservations, and attraction ticket sales tracking ahead of last year in many areas.
  • Ontario tour operators report that bookings look the same or higher than last year, with 60% of operators surveyed by TIAO reporting this trend.
  • Operators in the cottage region of Muskoka north of Toronto are seeing an increase of between 10 and 15% in bookings for the summer compared with last year.
  • A survey conducted by Context Research Group found that 87% of Ontarians reported they are likely to take a trip within their province, and only 27% are likely to travel to the US.
  • Statistics Canada reported a 35.2-per-cent drop in Canadian residents returning by car in April compared with a year earlier.
  • Domestic air travel bookings are showing modest growth, with a 3-percent increase in bookings for the months of June, July, and August compared with last year.
  • US-bound bookings are down around 22 per cent, with summer bookings from Montreal to Miami International Airport and from Vancouver to New York's LaGuardia Airport both down 53 per cent.
  • Air Canada is adapting to the winds of change by cutting flights to the US by 10 per cent for the next six months.
  • WestJet Airlines Ltd. is suspending nine routes due to reduced demand between Canada-US destinations from May through October.

Statistics:

  • 35.2-per-cent drop in Canadian residents returning by car in April compared with a year earlier (Statistics Canada).
  • 3-percent increase in domestic air travel bookings for the months of June, July, and August compared with last year (Cirium).
  • 22 per cent decline in US-bound bookings (Cirium).
  • 53 per cent decline in summer bookings from Montreal to Miami International Airport (Cirium).
  • 79 per cent decline in summer bookings from Montreal to New York's John F. Kennedy International Airport (Cirium).

Sources:

  • Andrea MandelCampbell, founder of Karibu Adventures, an Edmonton-based tour operator (no date).
  • Darren Reeder, president and chief executive officer of Tourism Industry Association of Alberta (no date).
  • Andrew Siegwart, president and CEO of Tourism Industry Association of Ontario (no date).
  • Val Hamilton, executive director at Muskoka Tourism (no date).
  • Context Research Group (no date).
  • Statistics Canada (no date).
  • Cirium (no date).
  • Air Canada (March 2023).
  • WestJet Airlines Ltd. (no date).