Canadians travel in Canada this holiday season to cut costs
Canadian Travel Trends in 2024: A Shift Towards Domestic Destinations
As we approach the end of 2024, travel expert Barry Choi has observed a noticeable decrease in filled seats on flights compared to previous years. This unexpected trend comes after a surge in travel demand following the reopening of borders post-COVID-19.
In 2022, the travel industry saw a boom as people rushed to satisfy their wanderlust, but 2023 and now 2024 have shown a more subdued approach to travel. Canadians are opting to explore domestic destinations this holiday season due to budget constraints, lower domestic fares, and a decline in overseas travel.
Data from aviation tracking firm Cirium indicates a 2.5 per cent decrease in Canadian flights to the United States this December, while domestic flight capacity is expected to increase by nearly 10 per cent compared to the previous year.
This surge in domestic flights has led to a 20 per cent decrease in fares within Canada, making travel more accessible to budget-conscious travelers. However, the reduction in flights to the U.S. has resulted in higher airfares overall, especially for popular winter destinations like Florida, Arizona, and California.
Millennials and gen Z travelers, who now make up the majority of passengers, are being more cautious with their spending, especially on experiences like travel. A survey conducted by FlightHub revealed that over half of Canadians are delaying holiday trips due to financial concerns.
The recent drop in the Canadian dollar’s exchange rate, coupled with proposed tariffs on imports from Canada, has further discouraged travel to the U.S. Many snowbirds and winter vacationers are reconsidering their plans due to the increased costs associated with a weaker currency.
Despite these challenges, family visits remain the primary reason for holiday travel among Canadians. FlightHub data shows a significant number of bookings to Manila and New Delhi during the holiday season, indicating a preference for reconnecting with loved ones.
While international travel has seen a decline, popular destinations like New York City, Florida, and California continue to attract Canadian travelers. Overall, travel patterns have stabilized in 2024 compared to the fluctuating trends seen in previous years due to COVID-19 restrictions.
Although passenger numbers have increased marginally, they still fall short of the population growth rate, suggesting a slight decline in air travel on a per capita basis. Budgeting for holiday travel remains modest, with a majority of travelers setting aside $1,000 or less for their trips.
As we navigate the evolving landscape of travel in Canada, it’s evident that domestic destinations are gaining popularity among travelers seeking affordable and meaningful experiences closer to home.
This report by The Canadian Press was first published on December 8, 2024.
