Canadian travel habits are undergoing a noticeable shift in early 2025, according to recent booking trends data from FlightHub, a leading Canadian online air travel provider.
Analysis of platform data collected in February and March reveals a decrease in flight bookings to the United States, accompanied by lower prices for travel south of the border.
Simultaneously, domestic Canadian travel has surged in popularity, now claiming the top spot for searches on FlightHub. Meanwhile, Mexico has emerged as a favored alternative destination, climbing into the top five most searched.
Canadian Travel: Shift Away from US Market
The FlightHub data paints a clear picture of this evolving landscape. The volume of U.S. flight bookings experienced a significant 26-percentage-point drop between January and February 2025.
This downward trend continued into March, with an additional 13-percentage-point decrease in bookings.
Furthermore, during a period marked by global uncertainty and market fluctuations (March 28th to April 7th), FlightHub observed a further slight dip in U.S. booking trends.
This registered a 5-percentage-point decrease compared to the same period last year. Interestingly, this period also saw a notable 20% decrease in the average price of flights to the U.S.
Key Shifts in Search Trends (Year-over-Year)
Canada Takes the Crown: Interest in exploring destinations within Canada has skyrocketed, propelling it to the number one most-searched destination on FlightHub. Domestic travel now accounts for a significant 18% of all searches, a substantial 13-percentage-point increase compared to 2024.
U.S. Demand Softens: The United States, previously the most sought-after destination before the start of February, has now slipped to second place, indicating a cooling in travel demand.
Mexico’s Rise: Mexico, which did not feature in FlightHub’s top five most searched destinations throughout 2024, has now climbed to the impressive #4 position, suggesting a growing interest in this warm and culturally rich destination.
U.S. Booking Trends in Detail
Overall Decline: Year-over-year, bookings for travel to the U.S. have generally decreased. This trend is particularly pronounced among Boomer travelers. Bookings are down by 18 percentage points compared to 2024. However, Gen X and Millennials account for the majority of cancellations.
Florida Remains Popular: Despite the overall decline, Florida continues to be the top U.S. destination for Canadian travelers. It holds a 31% share of bookings and showing a 3-percentage-point increase year-over-year. Following Florida in popularity are California (17%) and Nevada (10%).
Price Drops Offer Savings: The average ticket price for any U.S. destination during this period has decreased by a significant 17 percentage points from last year. This isnow $355 CAD compared to $427 CAD).
Notable, popular sunny U.S. winter break destinations are experiencing even more substantial price reductions: Orlando (-25%), Fort Lauderdale (-43%), and Houston (-36%).
Analysis and Insights
FlightHub offers valuable commentary on these evolving trends. They suggest that the significant drops in U.S. bookings in February and March could be attributed to a “wait-and-see” approach by travelers.
It is likely that many may have postponed their booking decisions due to uncertainty. The platform also highlights the potential impact of the February 1st tariff announcement as a possible catalyst for a shift in preferences.
Canadians are potentially seeking alternative destinations, explaining the observed increase in interest towards other locations like Mexico.
FlightHub acknowledges that a seasonal slowdown in travel bookings is typical after January. However, the timing and magnitude of the decline in U.S. bookings strongly suggest that consumer confidence in cross-border travel has been significantly impacted.
The decline follows the tariff announcements and comes amidst significant media coverage of geopolitical events,
Interestingly, the continued growth in bookings for Florida despite the overall slump suggests that Canadians still desire travel.
They may be gravitating towards familiar and perceived lower-risk destinations. These could be considered “non-negotiable” trips for snowbirds and loyal repeat visitors who are now benefiting from the more affordable prices.
Conclusion
In conclusion, the latest data from FlightHub reveals a dynamic shift in Canadian travel preferences. The allure of the United States is definitely waning, at least for the time being. Canadian travel in the domestic market is booming, and alternative destinations like Mexico are gaining traction.
The decrease in U.S. flight prices may well be an enticement some travelers. Overall, the broader economic and geopolitical factors are playing a significant role in shaping where Canadians are choosing to spend their travel dollars in 2025.
