The trip is still scheduled by them. Canadians continue to carve out time for travel despite the rising cost of groceries and housing costs. However, the emotional weight of today’s decisions is different. They are now focused on nourishment rather than escape.
A staggering 96% of Canadians now believe that travel is essential to their mental health. It has nothing to do with indulgence. Restoration is what it is. A button to reset. The destination seems less significant than the emotional result, whether it’s a solo hike through Alberta’s untamed trails or an autumn drive to witness the Laurentians’ red flush.
| Key Insight | Context |
|---|---|
| Mental Health as Travel Driver | 96% of Canadians view travel as essential for emotional well-being |
| Inflation’s Grip on Travel | 69% say costs have impacted plans; 58% now prefer local destinations |
| Rise of “Wanderlost” | 95% delay travel due to stress, indecision, or price sensitivity |
| AI Travel Planning Tools | Help users streamline decisions, compare value, and reduce anxiety |
| Fantasy-Driven Travel Trends | 71% express interest in fictional, romance-inspired destinations |
| Decline in U.S. Trips | Cross-border travel fell 21.6% year-over-year by Q2 2025 |
| Domestic Travel Surge | $20.3B spent in Q2 2025, up 13.5% year-over-year |
| Solo & Intentional Travel Growth | Young travelers opt for emotionally rich solo and offbeat journeys |
Spending trends support the change.
Canadians spent $20.3 billion on domestic travel in the second quarter of 2025, a 13.5% increase from the previous year. The number of people who prioritize emotional returns over material ones is remarkably consistent across all income levels. The average cost of an overnight trip is approximately $450, and travelers pay for that amount with planning rather than whimsy.
A silent part is played by decision fatigue.
This hesitancy, a sort of stalled desire caught between inspiration and inflation, has been referred to as “wanderlost.” More than 95% of Canadians acknowledge that they have postponed travel because of anxiety about planning or uncertain costs. However, incredibly useful tools are emerging to clear that fog, such as itinerary builders driven by AI. Through the use of sophisticated analytics, these platforms assist users in evaluating trade-offs, showcasing off-peak offers, and finding meaningful and surprisingly reasonably priced local experiences.
A change in aesthetics is also taking place.
Fantasy and romance-themed vacations are becoming more popular. Examples include moody coastal inns, dramatic castles in Quebec, and themed retreats based on beloved books. Destinations offering narrative immersion are of interest to 71% of Canadians. These are thoughtfully designed experiences that appeal to the desire to be emotionally, not just physically, transported; they are not gimmicks.
The emergence of AI “co-travelers” is especially novel.
Digital companions that behave like hyper-organized friends, such as voice-guided bots or travel-planning avatars, are being tested by some Gen Z and Millennial tourists. They troubleshoot, translate, and even suggest playlists based on scenery. Not only is it innovative, but it’s also very effective and frequently makes traveling alone seem less isolating and more daring.
The psychology of traveling alone has evolved.
Many people are making the deliberate decision to travel alone rather than out of need. Waking up in a borrowed city with no obligations and organizing your day like a playlist is particularly rejuvenating. These travels are increasingly being described as creative retreats or emotional sabbaticals among young professionals and creatives. It’s not just tourism; it’s travel as therapy.
However, it is evident that cross-border customs are evolving.
The decline in U.S. travel was much faster than anticipated, falling 21.6% year over year. A declining Canadian dollar and more expensive lodging are contributing factors, but there is also increasing cultural dissonance. Instead, many Canadians are exploring their own country or heading to Europe. They are realigning, not retreating.
At a hostel in Vancouver, I heard two friends discussing their next escape one afternoon. The desire was to return to Banff “before it gets too crowded.” The other was more in line with a retreat in rural Ontario with a literary theme. The destinations were modest, but what really impressed me was how carefully they discussed fulfillment, cost, and legacy. One person stated, “I want the kind of trip that makes me journal.” That stuck.
Though it’s not ostentatious, this new travel psychology is subtly revolutionary.
Canadians are redefining their financial and emotional spending habits through strategic planning. Loyalty programs are increasingly being used for experience curation rather than discounts. Meaning, not mileage, is what long weekends are designed for. Additionally, a growing number of people are choosing lesser-known, locally enriched locations over well-known tourist destinations, such as a regenerative farm in Nova Scotia or a forest cabin in Saskatchewan that has only Wi-Fi and a wood stove.
This trend feels especially grounded in light of global volatility and climate shifts. Canadians are demonstrating that luxury isn’t always necessary for adventure. All it has to be is genuine.
The role of medical caution is subtle but powerful.
For many families, the risks of receiving medical care overseas have become an unconscious filter. More than 80% of Canadians admit that their finances could be completely destroyed by a single overseas medical emergency. Unplanned international travel has become much less appealing as a result of this awareness, while places with predictable costs, consistent care, and few language barriers have become more alluring.
We are witnessing a cultural recalibration that is incredibly successful.
Travel in Canada is changing to reflect our better selves: purposeful, emotionally aware, resource-conscious, and openly vulnerable. Saying, “I need this for me,” is less embarrassing, and selecting experiences that uplift rather than impress is more proud.
In the end, this is a story about values despite all the discussion about data and money.
values that are moving toward essence and away from excess. Away from crossing things off a list and toward memories that last. I know this very well because I once took a plane to New York just to go to a bookstore. Financial reasoning was not used. It was sentimental. And occasionally, that’s the only important metric.
Because of this, this evolution is not only realistic but also incredibly hopeful.
