2025 is shaking up travel amid persistent financial pressures, geopolitical uncertainty and rising over-tourism and climate change concerns, says a new study by Blue Cross. But Canadian travellers are adapting their habits to consider such external factors, while a new generation of adventure lovers is driving change towards a more conscious future of travel, the report adds.
“Canadians are rethinking how they travel, not whether they travel,” says Tim Bishop, Managing Director, Blue Cross of Canada. “We’re seeing travellers adjust their plans to not only overcome economic barriers but also factor in the impact their travel will have on the world. This is leading to more intentional planning, such as choosing destinations that are more aligned with one’s values while also considering risks like extreme weather. With this mindset, Canadians are prioritizing flexibility and peace of mind with the goal for them to travel with greater confidence.”
Cost pressures
However, the financial strain of travel is more pronounced than ever, according to the study, with 81% of Canadian travellers reporting having changed their travel habits due to rising costs – a 12 percentage-point increase from last year.
Notably, many young travellers, who are just beginning to explore the world independently, are forming habits in an economic landscape that demands adaptability. According to the study, most (90%) Gen Z respondents report adapting to increased prices, compared to 70% of Boomers.
“As financial pressures continue to impact how Canadians travel, the weak dollar is adding to 2025 budget considerations, contributing to how decisions are made for both destination and duration,” says Bishop.
The 2025 Blue Cross Travel Study shows that 36% of travellers are already reducing the number of trips they take. With affordability top-of-mind, more than one-third (35%) of travellers say they are seeking less expensive accommodations or destinations, while 31% report taking advantage of off-peak seasons to save money. Some are choosing destinations closer to home (25%) or shortening their trips (22%), while one-in-10 (12%) travellers say they are shifting to alternative transportation, such as buses or trains, to offset expenses.
This demonstrates that Canadians remain committed to travel, finding alternative ways to make their adventures work in today’s economy, says the report
Geopolitical uncertainty, over-tourism and climate change
Beyond financial concerns, Canadians are also taking geopolitical uncertainty into consideration when thinking about their next trip. Following the American election, nearly half of Canadians (47%) say they are less likely to visit the United States in the next 12 months.
Over-tourism is also a concern, with 45% of Canadian travellers having experienced what could be considered anti-tourist sentiment, such as daily visitor limits or short-term rental restrictions in major areas. Recognizing this, some are opting for a more conscious approach: nearly half (47%) of respondents – notably, Gen Z (58%) and Millennial (55%) groups – say they have changed their travel plans due to concern from local communities about potential challenging impacts of tourism, such as rising cost of living and social pressures. Another 20% are avoiding over-touristed areas altogether and 19% are making a conscious effort to support local businesses when travelling.
Amid these evolving trends, many Canadians still perceive travel as a catalyst for good. Most respondents (83%) believe travel helps build positive connections with local communities, whether through supporting local businesses or respecting cultural traditions.
Above all else, climate change is the global development most likely to influence travel habit shifts, with 65% of travellers adjusting their plans due to climate change. This is most pronounced among the Gen Z group, with 77% factoring climate concerns into their choices.
Whether choosing destinations with less extreme weather (27%), shifting travel dates to reduce risk (23%) or avoiding certain destinations altogether (20%), Canadians are increasingly considering climate change as part of their informed decision-making.
New era
The future of travel is evolving far beyond traditional sightseeing, with Canadians factoring in both cost-coping mechanisms and personal beliefs. Younger travellers, whose habits were shaped by post-pandemic challenges, are now taking a more agile, risk-aware and conscious approach to how they travel.
“These findings reinforce the need for more assistance-focused travel insurance,” concludes Bishop. “Canadians want resources to support their shifting travel needs, given constantly changing risks. A personalized travel insurance and assistance approach can help navigate unexpected events and manage associated costs due to health or other issues, whether out of province or out of country.
To learn more about the Study, visit www.bluecross.ca/travelstudy.
If this article was shared with you by a friend or colleague, you may enjoy receiving your own copy of Travel Industry Today with the latest travel news and reviews each weekday morning. It’s absolutely free – just CLICK HERE.