Canadian travellers are adapting to financial pressures, geopolitical concerns and climate change, according to the 2025 Blue Cross Travel Study. As these external factors influence travel decisions, the need for comprehensive travel insurance has become more evident than ever.
With 81% of travellers adjusting their plans due to rising costs, more Canadians are seeking budget-friendly options, such as off-peak travel or alternative destinations. These changes emphasize the importance of trip cancellation and interruption insurance, ensuring coverage for unexpected financial losses related to postponed or altered plans.
“As financial pressures continue to impact how Canadians travel, the weak dollar is adding to 2025 budget considerations, contributing to how decisions are made for both destination and duration,” said Tim Bishop, managing director at Blue Cross of Canada.
Geopolitical uncertainty, particularly regarding US travel, is influencing decisions, with nearly half (47%) of Canadians reconsidering trips to the US. Given concerns over over-tourism and local restrictions, travel insurance with emergency medical coverage and travel assistance remains critical in case of unexpected incidents.
Climate change is also a major factor, with 65% of travellers adjusting plans due to extreme weather risks. Canadians are increasingly choosing destinations with less volatile weather or modifying travel dates to avoid potential disruptions.
Trip delay, cancellation and emergency evacuation coverage are crucial in mitigating the risks associated with natural disasters.
As younger travellers adopt more conscious and risk-aware habits, personalized travel insurance solutions become even more essential. Comprehensive policies can provide financial protection against medical emergencies, lost baggage, and trip cancellations, while assistance-focused insurance helps travellers navigate unforeseen events with confidence.
“As travel habits shift, Canadians want insurance solutions that align with their evolving needs,” said Tim Bishop, managing director at Blue Cross of Canada. “Personalized travel insurance and assistance provide peace of mind, ensuring travellers are protected against both financial and situational uncertainties.”
