Blue Cross Survey: Geopolitical Instability Reshaping Where & How Canadians Travel

The 2026 Blue Cross Travel Study reveals that geopolitical instability and rising costs, particularly in the United States, are significantly reshaping where and how Canadians travel. 

Despite these challenges, Canadians remain committed to travel, with many turning to artificial intelligence (AI) to plan more cost-effective trips and make informed decisions about where and when to visit.

“Canadians are not travelling less – they’re travelling smarter” says Sylvain Charbonneau, President & CEO, Quebec & Ontario Blue Cross. “We are seeing a shift toward using the latest AI tools to plan travel with greater awareness and flexibility, showing that Canadians’ desire to explore remains strong even in an uncertain world.”

AI is reshaping how Canadians plan their trips

The Blue Cross study found that nearly half (49%) of Canadian travellers now use AI to plan trips, especially for comparing prices, finding destinations and building itineraries. While adoption is highest among younger travellers – 70% of Gen Z and 63% of Millennials – surprisingly it is also growing across generations, with 42% of Gen X and 23% of Boomers also using AI tools.

As global uncertainty drives up travel costs, particularly in the U.S., Canadians are turning to AI to help them make informed choices and stay within budget. The majority (87%) say they are cutting back on travel expenses such as shopping, trip length and premium upgrades, and are using digital tools to find more affordable alternatives.

Blue Cross says these findings suggest that as Canadians grow more comfortable using technology to personalize their experiences, AI is emerging as a key enabler of smarter, more confident travel decisions.

Geopolitical instability is influencing destination choices – but not deterring travel

More than three-quarters (76%) of Canadians are less likely to travel to the U.S. in 2026 due to concerns about political tensions, trade issues and unfavourable exchange rates. That’s a sharp increase from 2025, when just under half (47%) said the same.

Boomers are especially hesitant, with more than half (54%) cancelling all U.S. travel plans in 2026, up from only 12% last year. Gen Z travellers, however, remain more optimistic, with 62% expecting sentiment toward U.S. travel to improve over the next five years.

Still, Canadians’ determination to travel is unwavering: 95% of those avoiding the U.S. plan to explore elsewhere – including destinations within Canada (68%), Mexico and the Caribbean (38%) and overseas locations (35%). This shift underscores Canadians’ resilience and evolving travel mindset, as they prioritize new experiences without compromising safety or value.

Confidence and protection remain central to Canadian travel habits

Canadians continue to take a thoughtful approach to managing risk while travelling. The majority (86%) report having some form of travel insurance, whether purchased directly (56%) or through workplace plans and credit cards (30%). This widespread use highlights the role of financial protection as a key part of responsible trip planning.

Younger Canadians, in particular are increasingly prioritizing peace of mind: 42% of Gen Z and 47% of Millennials now consider travel insurance a key part of planning, up from 39 and 43%, respectively, last year.

Additionally, awareness of potential medical costs abroad remains high, with 83% of Canadians recognizing that an overnight emergency room visit could cost more than $3,600. Blue Cross says these findings suggest Canadians are integrating some sort of coverage into their planning process, ensuring they can travel with greater confidence even amid rising prices and global uncertainty.

“The key takeaway here is that travellers are thinking more intentionally about their trips,” says Charbonneau. “Canadians are weighing the financial and emotional factors that make travel rewarding, and AI tools are transforming how they plan. Access to increasingly sophisticated technology is helping travellers make more confident decisions – finding the right destinations, balancing budgets and maximizing every experience.”