How travel worries and U.S. tensions are impacting

The holiday season is fast approaching, and Canadians are busy booking tickets and packing their luggage. But it seems their travels and how they get there will be a little different this year.

New travel rules, volatile exchange rates, and persistent airport congestion may prompt Canadians to reconsider their travel plans in December. Statistics show that travel from Canada to the United States declined sharply this summer, with no signs of abating, while travel elsewhere has either remained stable or increased.

The European Union's Entry/Exit System (EES), which was implemented last month and is expected to be fully operational by April 2026, will require Canadians to provide biometric data and pre-clearance before entering EU countries. This change could further complicate early travel to some European countries.

Meanwhile, some US airports are warning of "holiday congestion." Cross-border travel has declined since President Donald Trump's re-election due to rising tariffs and renewed political tensions. For many travelers, the thought of connecting flights through busy US hubs—and potential cancellations—is a major reason for prioritizing domestic travel destinations.

The Rise of Staycation Nation

Despite the challenges, Canadians appear to be finding ways to escape the winter cold without traveling abroad. Domestic travel has surged for the second consecutive year, with destinations like Banff, Quebec City, and the Maritimes topping search lists for vacation bookings.

The weak Canadian dollar and high international airfares are prompting more travelers to travel within Canada, while local tourism boards are turning to cozy markets, ski resorts, and coastal winter festivals to keep the weather pleasant.

The federal government's reintroduction of the Canada Strong Pass for the 2025 winter season offers even more incentives for Canadians considering domestic travel over foreign travel: free admission to national parks and museums and discounts on VIA Rail travel for youth. This year's staycation isn't just about convenience; it's being encouraged nationally.

So, what are your travel plans this year?

Whether you're traveling to the Rockies, dreaming of Europe, or planning to stay home in December, your travel decisions this holiday season reveal as much about the Canadian mindset as your next boarding pass.