TORONTO — A recent online panel discussion hosted by Discover America Canada titled ‘State of the Industry’ brought industry experts together to discuss the current and future landscape of Canada-U.S. travel. The panel was moderated by Colin Wood from VoX International, who also serves as the Director for Discover America Canada (DAC). Among the panelists were Jackie Ennis, VP of Global Trade Development at Brand USA; Jennifer Hendry, Lead Research Associate for the Canadian Tourism Research Institute; Michelle Tupman, GM of Great Canadian Holidays and Coaches; Raina Williams, Senior Regional Manager at Expedia Group Media Solutions; Viktor Spysak, Manager of Sales and Tourism Partnerships at Air Canada; and Stephen Fine, founder of Snowbird Advisor.
The discussion highlighted a significant decline in Canadian land travel to the U.S., with statistics indicating a drop of 745,000 visitors over the past year. According to Hendry, “Land travel is down 32% year-over-year (YOY), while air travel has also suffered, albeit less severely, at a 20% decline.” Despite this downturn, Hendry noted a rise of 9% in trips to non-U.S. destinations, which now account for 47% of all outbound travel, compared to 39% last year and in 2019.
Mexico Surpasses Canada as the Top Inbound Market to the U.S.
Canada has long been a leading source of international visitors to the United States; however, recent months have seen Mexico surpassing Canada in this regard. “This shift is largely due to Canada’s recent decline and Mexico’s increase,” stated Ennis from Brand USA. Despite this trend, she emphasized that “16 million annual Canadian travelers is still significant.”
To counter these declines, several U.S. states are launching campaigns aimed specifically at welcoming Canadian visitors, stressing the importance of maintaining strong tourism ties. Ennis pointed out that sentiment among Canadian travelers has stabilized since earlier lows in April and May, marking a potential shift back toward U.S. travel.
Domestic Travel Thrives Amidst U.S. Travel Decline
Expedia’s Williams noted that domestic travel demand among Canadians significantly outstripped that for U.S. travel during Q2 2025. “Nearly 50% of Canadian travelers are planning winter vacations,” indicating robust opportunities for growth.
Challenges for Travel Retailers and Wholesalers
The downturn in cross-border travel has heavily impacted travel retailers and wholesalers across Canada. Michelle Tupman shared firsthand insights from Great Canadian Holidays and Coaches, revealing a drastic reduction in U.S. tours. “We’ve lost about 95% of our U.S. travel since January 2025, forcing us to pivot towards increasing our Canadian offerings,” she explained.
Despite the downturn in U.S. travel, domestic destinations like the Maritimes and Quebec City are booming. Tupman cautioned, however, that interest in U.S. destinations might resurface, particularly in iconic locales like New York City, Nashville, and sports events.
The Snowbird Dynamic
About one million Canadian snowbirds typically migrate to warmer climates during winter, with a traditional split of 80% traveling to the U.S. This year presents a mixed picture: some snowbirds are opting out of U.S. travel, while others express a hesitant interest in returning. Fine noted that “reports vary; some snowbirds are reluctant, while others are keen to return.”
Air Canada’s Cautious Revival
Viktor Spysak of Air Canada remarked that the leisure market is performing better than the non-leisure segment. Air Canada is beginning to cautiously restart its marketing efforts for U.S. routes, aiming not for a hard sell but rather to remind travelers of available options. Also, new routes to destinations such as Columbus, Cleveland, and San Antonio are set to launch next summer.
Though there remains hesitance among travelers, Spysak highlighted strong demand for Caribbean destinations and added extra capacity on flights to popular locales like Jamaica and Belize. “Travelling to the U.S. offers unique opportunities given the travel time,” he said, emphasizing that for families, the U.S. remains an attractive choice.
Conclusion: The Future of Canada-U.S. Travel
The panelists collectively expressed optimism about Canada’s return to U.S. travel in the near future. While challenges remain in terms of political sentiment and economic factors, the demand for travel persists, signaling a complex yet potentially rewarding recovery ahead.
