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