The looming threat of tariffs is deterring some Canadians from travelling to the U.S., and they’re willing to pay extra to change their plans.
Amra Durakovic, head of communications for Flight Centre Travel Group Canada, said that amid the uncertainty, Canadians are “increasingly pivoting away” from their U.S. vacations.
“What that shows is Canadians, they’re making a clear stance by choosing to spend their tourism dollars elsewhere,” she said in a phone interview. “It’s really highlighting our power of values-driven decisions to, in a quiet way, protest the U.S. administration’s 25 per cent tariffs. It’s a powerful message.”
Canadians stepping out of their comfort zone
According to Durakovic, even though changing travel plans still comes at a cost, Canadians are choosing to rebook their trips and opting “to go anywhere but the U.S.”
“Canadians are still very happy to pay for the rebooking or cancellation fee in this instance,” she said.
The U.S. Travel Association estimates that 20.4 million Canadians travelled to the U.S. in 2024, favouring states such as Florida, California, Nevada, New York, and Texas.
When it comes to travel destinations, Durakovic said that Canadians are “rather conservative.”
“Our top three destinations are Mexico, Canada, and the U.S.,” she said.
The situation appears to have sparked a new sense of adventure among Canadian travellers. They are now more willing to step out of their comfort zones and consider destinations where they can get more bang for their buck.
Exploring alternatives instead of travelling to the U.S.
Durakovic said Flight Centre has been observing a declining interest in travelling to the U.S. since November as a weakened loonie has made it more expensive for Canadians to travel south of the border.
“Now you add on top of that this 25 per cent tariff, well, now Canadians are just like, ‘No, absolutely not,'” she said.
A YouGov survey commissioned by Flight Centre Canada late last year revealed that 64 per cent of Canadians cite cost as the most important factor guiding their travel decisions. So, it’s unsurprising that Canadians are willing to travel further to countries such as Portugal, where it’s more affordable and the currency isn’t tied to the U.S. dollar.
“They’re also travelling to destinations like Southeast Asia, say, Thailand, Cambodia, Laos, or Vietnam,” explained Durakovic. “While it might be a trek to get there, once you’re there, everything is so affordable, and it’s such a wonderful place to visit.”
There’s also been increased interest in destinations like South Africa and Korea due to the popularity of shows like Squid Game. And with Prime Minister Justin Trudeau encouraging people to travel within the country, Durakovic said they hope to see more interest in domestic travel.
She’s been speaking with customers and says Canadians feel betrayed.
“That’s what I repeatedly keep hearing, is that they feel as though they’ve been betrayed by a dear friend, a neighbour, and so I think this is really going to stick for a long time, regardless of this reprieve,” said Durakovic.
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