Canadians embrace AI to plan smarter travel & stretch budgets

A growing number of Canadians are using artificial intelligence to plan their travel, as concerns over costs and global uncertainties reshape how and where they choose to visit.

The 2026 Blue Cross Travel Study indicates that 95 per cent of those avoiding the United States still plan to travel elsewhere, with nearly half now using AI tools to stretch their travel budgets.

AI in travel planning

Nearly half (49 per cent) of Canadian travellers report using AI to help arrange their trips. Common uses include comparing prices, researching destinations, and building itineraries. Adoption of AI is highest among younger generations. Seventy per cent of Gen Z travellers use AI for travel planning, while 63 per cent of Millennials do the same. Usage is also increasing among older demographics, with 42 per cent of Gen X and 23 per cent of Boomers now incorporating AI into their travel preparations.

As travel costs rise, particularly for trips to the US, many Canadians are seeking digital solutions to help manage expenses. Eighty-seven per cent say they are reducing discretionary spending on things like shopping, trip duration, and premium upgrades, aided by AI-driven tools that help them find affordable alternatives.

"Canadians are not travelling less - they're travelling smarter," said Sylvain Charbonneau, President and CEO, Quebec and Ontario Blue Cross.

Destination trends

Canada's neighbour south of the border is becoming a less attractive destination for Canadian travellers. Seventy-six per cent of Canadians report being less likely to travel to the US in 2026 due to concerns about political tensions, trade issues, and an unfavourable exchange rate. This represents a marked increase from the previous year, when 47 per cent expressed similar reluctance.

Boomers are most cautious, with 54 per cent cancelling all US travel plans for 2026. Last year, only 12 per cent did so. In contrast, Gen Z travellers are more optimistic, with 62 per cent expecting US travel sentiment to improve over the next five years.

Popular alternatives include Canadian provinces (68 per cent), Mexico and the Caribbean (38 per cent), and countries further afield (35 per cent).

Insurance and risk management

Canadian travellers are continuing to make risk management part of their travel plans. Eighty-six per cent currently have some form of travel insurance. The majority purchase insurance directly (56 per cent), while others rely on workplace-provided plans or credit card coverage (30 per cent).

Younger travellers are prioritising coverage. Forty-two per cent of Gen Z and 47 per cent of Millennials now consider travel insurance key to their planning process, up from 39 per cent and 43 per cent, respectively, in the previous year.

A heightened awareness of healthcare costs abroad is a contributing factor. Eighty-three per cent recognise that an overnight emergency room visit outside of Canada can exceed CAD $3,600. As a result, insurance coverage has become a central component of travel planning amid ongoing economic and global uncertainties.

"The key takeaway here is that travellers are thinking more intentionally about their trips," said 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."