As global tensions rise and the loonie struggles, Canadian travellers are shifting their vacation priorities—turning away from the U.S. and looking further abroad. According to new data from the Travel Health Insurance Association of Canada (THIA), political leadership, economic strain, and national loyalty are reshaping where (and how) we choose to explore.
We sat down with Will McAleer, THIA spokesperson, to unpack the latest findings from THIA’s 2025 Smart Traveller Survey—including why Gen Z is most likely to skip travel insurance, and how Canadians can protect themselves from costly surprises while still embracing wanderlust. —Noa Nichol
Let’s start with the big headline—why are so many Canadians choosing to avoid travel to the U.S. in 2025, and how do political and economic factors play into that decision?
The last time we witnessed a travel shift this significant was during the COVID-19 pandemic. Now, five years later, we’re experiencing a very different disruption. Canadians are increasingly considering their political values and national pride when it comes to discretionary spending. Canadians are sending a clear message: we have the power to choose where to spend our vacation budgets, and right now, that place is not likely to be the United States.
The U.S. has historically been Canada’s top travel destination. Do you see this shift in sentiment as temporary, or the beginning of a long-term change in Canadian travel patterns?
This change in travel choices is tied to political events. Canadians are still travelling, just not as much to the U.S., and international travel is still very much a priority. With many travellers rethinking trips to the U.S., we’re seeing growing interest in other destinations such as Europe, Asia and Central and South America . While it’s too early to pinpoint exactly where Canadians will land next, one thing is certain—no matter the destination, protecting your health and your wallet is a must. Travel health insurance is essential, especially when venturing to more remote destinations. In fact, with the high level of Assistance Services available through travel insurance policies, help can be provided in these less familiar destinations when emergencies happen.
Trends may shift, but the need for reliable travel health insurance will always be a necessity. It’s especially crucial during times of change, as Canadians venture to places they may be less familiar with.
As for the long term impact of this change in Canadian travel patterns, it will be interesting to see whether these patterns will continue.
Tariffs, politics, and a weak Canadian dollar were cited as top reasons for avoiding U.S. travel. Can you break down how each of these specifically impacts Canadians’ travel decisions?
These factors were identified as influencing traveller decisions. Everyone will have a personal response to each, and they may reflect a combination of emotional and rational thoughts.
Despite fewer trips to the U.S., travel overall is still strong. What are some of the top international destinations Canadians are turning to instead?
While some Canadians will still opt for international destinations—whether it’s relaxing on the beaches of Mexico and the Caribbean or discovering the cultural richness of Europe—many are also revisiting travel habits that gained popularity during the pandemic. Domestic travel is once again on the rise, with a growing number of Canadians choosing to explore the diverse and breathtaking experiences available right here at home.
Your survey found that nearly half of Gen Z respondents would travel abroad without travel health insurance to save money. What are the risks of this, and what do you want this generation to know?
Travel health insurance isn’t always top of mind for Gen Z when planning a getaway. Everyone deserves a carefree vacation and cutting costs for travel health insurance can be expensive.
While it’s easy to feel invincible, especially when you’re young and excited for an adventure, the reality is that unexpected medical emergencies can happen to anyone—and they can be incredibly expensive. Gen Z travellers, in particular, are more likely to engage in higher-risk activities like hiking, adventure sports, or scooter rentals abroad, where even a minor accident can result in thousands of dollars in out-of-pocket medical bills.
No one wants to think about worst-case scenarios while packing for a beach week or a backpacking trip through Europe, but ignoring travel medical insurance can turn a dream trip into a financial nightmare. A simple trip to the emergency room, hospitalization, or even medical evacuation can easily cost more than the entire trip itself.
We strongly recommend verifying what coverage you may already have through your credit card or employer benefits before you travel. If you’re unsure, make the call and find out. And if you don’t have coverage, buying a travel medical plan is a small price to pay for peace of mind—it’s one of the smartest and most affordable parts of planning a trip.
With unexpected medical costs ranking high on travellers’ list of concerns, what are some examples of how travel health insurance can protect Canadians financially during a trip?
We always recommend that Canadians take a close look at the fine print of their travel health insurance before heading out. Even if you already have coverage—whether through your employer or a credit card—it’s important to know exactly what’s included and what’s not.
We’ve seen too many travellers caught off guard when things like pre-existing conditions or injuries from ‘risky’ activities aren’t covered under standard plans. Our goal is to help Canadians avoid those tough situations. After all, you should be coming home with great memories, not a massive medical bill.
Can you walk us through what kind of coverage is most important for Canadians traveling outside of the country—especially with the rise in extreme weather and global instability?
When Canadians travel outside the country, the most critical form of protection they need is comprehensive emergency medical coverage. Provincial healthcare plans provide minimal support abroad, often covering from 5-8% of medical expenses. Without proper insurance, travellers can face enormous costs for hospital stays, ambulance services, emergency surgeries, or even basic physician visits. In regions where healthcare costs are particularly high—like the United States and Mexico — this type of coverage can be the difference between a safe recovery and overwhelming debt.
Trip cancellation and interruption coverage is also essential, especially given the increasing frequency of natural disasters, political unrest and unexpected personal emergencies. This coverage protects travellers from losing non-refundable trip costs if they need to cancel before departure or cut their trip short due to unforeseen events. It offers financial protection and peace of mind, ensuring travellers don’t bear the full brunt of last-minute changes that are outside their control.
In a world where severe weather can derail even the best-laid plans, travel delay and missed connection coverage is becoming increasingly important. This type of insurance helps cover the cost of meals, accommodations and alternate transportation if a traveller is delayed due to weather or operational issues. It ensures travellers aren’t stranded or left scrambling at their own expense, especially when delays extend for several hours or more.
Finally, baggage loss, damage or delay coverage is important for maintaining continuity and comfort while travelling. Whether bags are lost entirely or delayed en route, this coverage provides reimbursement for essentials and replacement items. It allows Canadians to continue their journey with minimal disruption and without having to repurchase vital items out of pocket, offering both convenience and practical support when travel hiccups occur.
What are some of the most common misconceptions Canadians have about travel health insurance, and how can they better educate themselves before booking a trip?
The most common misconception is that all travel health insurance covers any type of medical emergency, no matter the circumstance. There are nuances related to specific situations that need to be understood. Everyone needs to know their trip, understand their travel health insurance policies and call their providers if they have any questions.
For example, not all policies will cover you for incidents related to pre-existing conditions. While a pregnant mother’s medical care is covered under most policies, a baby born while travelling who requires medical care may not be. Injuries from what a policy considers a high risk activity should also be understood.
THIA offers three key tips for smart travel: know your policy, know your trip, and know your health. Can you explain how these simple steps can make a big difference in travel planning?
There are so many different types of travel health insurance policies out there, so how can Canadian travellers pick the one that is perfect for them? Well, they need to consider those three points to ensure a perfect match and allow for a stress free vacation.
Know your trip: Are there any government travel advisories for your destination? Will you be doing high-risk activities like hiking, skiing, or scuba diving? Are you traveling during hurricane or wildfire season? Understanding the unique risks of your trip helps you choose coverage that fits your plans.
Know your policy: Travel health insurance isn’t one-size-fits-all. Every policy is different, so don’t be afraid to ask questions. Talk with your insurance provider and be sure to clarify what’s included, especially when it comes to exclusions around travel advisories or specific activities.
Know your health: If you have any pre-existing medical conditions you may not be covered within your travel health insurance policy. It’s best to consult a doctor before your trip if you have any uncertainty around your health that could potentially pop up while you’re away.
Finally, for Canadians still on the fence about purchasing travel insurance, what would you say is the most compelling reason to make it a must-have for every trip?
We’re fortunate to live in a country where most of us don’t have to think about the cost associated with our last doctor’s visit or trip to the ER. But while we’re travelling, many don’t understand that even minor injuries or illnesses can result in thousands of dollars (sometimes hundreds of thousands of dollars) in medical bills.
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