Canadian Outbound Travel: How Shifts Impact US and Europe

Canadian outbound travel has fractured along two separate corridors: outbound visits to Europe jumped 13.6% in 2025 as travelers bypassed traditional short-haul routes, while visits to the United States plunged 23.5% [1]. Although Canadian cross-border trips to the US have now logged six consecutive months of gains, overall US volumes remain far below 2024 levels, requiring revenue managers across both destinations to recalibrate their source-market assumptions [2].

Where did Canadian outbound travel shift in 2025?

Canadian tourists traded cross-border trips to the United States for long-haul transatlantic journeys to European destinations [1]. According to Skift, Canadians took 23.5% fewer trips to the US in 2025 [1]. Over the same period, Canadian visits to Europe expanded by 13.6%, demonstrating a direct substitution effect as Canadian travelers bypassed their southern neighbor [1].

This reallocation inverted longstanding regional demand patterns across North American distribution channels [1]. Historically, Canada acted as a dependable feeder market for US drive-to destinations and warm-weather resorts [1]. Instead, European cities and resort markets captured a wave of Canadian bookings during a period when outbound volume to the United States contracted sharply [1].

How does Canadian sentiment toward Europe compare to American demand?

Canadian intent to visit Europe outpaces American interest by double digits this year [1]. As Skift reported, 45% of Canadians plan a European vacation this year, compared to 34% of Americans [1]. This surge comes precisely as US transatlantic demand decelerates from historical highs [1].

American travelers set a benchmark by taking close to 24 million trips to Europe in 2025 [1]. However, outbound US travel to Europe eased shortly thereafter [1]. Monthly growth in American departures to Europe cooled from roughly 6% in the previous summer down to 2% by May, followed by outright contractions of 2.1% in June 2026 and 1.2% in July 2026 [1]. As American travelers paused following their record year, Canadian travelers stepped in to fill European hotel room blocks [1].

What does this divergence mean for European destination marketing?

European national tourism organisations must stop treating Canada and the United States as an identical North American block [1]. As reported by Skift, major European tourism boards—including France, Britain, Ireland, Spain, Switzerland, and Portugal—already maintain dedicated teams and offices in Toronto or Montreal [1]. Conversely, many smaller European tourism boards manage all North American outreach from a single office or agency, frequently located in New York [1].

Because the American and Canadian markets have decoupled, blanket regional campaigns fail to address opposing demand realities [1]. European hotels and destination marketers relying on New York-based agencies risk under-allocating inventory and marketing dollars to Canada, where traveler propensity to visit Europe stands eleven percentage points higher than in the US [1].

Are Canadian cross-border trips to the United States recovering?

Cross-border traffic to the United States is climbing back, but it has not reached pre-slump baselines [2]. In a separate report, Skift noted that Canadian travel to the United States registered its sixth consecutive month of increases [2]. Hoteliers situated in US drive-to destinations and gateway markets report a steady rebound in border arrivals [2].

Despite this half-year run of consistent gains, total Canadian visits remain significantly below 2024 levels [2]. The 23.5% drop experienced in 2025 created a deficit that six months of incremental growth has yet to erase [[1], [2]]. While US drive-to hotels are recovering volume, they have not recaptured the market share lost during Canada's transatlantic pivot [[1], [2]].

How should hotel revenue managers adjust rate and distribution strategy?

Hotel operators in Europe should capture Canadian bookings through targeted distribution rather than relying solely on US feeder markets [1]. With US transatlantic departures dropping 2.1% in June 2026 and 1.2% in July 2026, European revenue managers need alternative long-haul demand to protect average daily rates [1]. Canada represents an expanding customer base with 45% intending to visit Europe this year [1].

For US hotel operators, pricing strategies in gateway and northern border drive-to destinations must account for a gradual rather than immediate Canadian recovery [2]. Although Canadian volume has climbed for six straight months, properties banking on a full return to 2024 occupancy numbers will fall short [2]. Revenue teams should treat returning Canadian traffic as rebuilding volume rather than relying on it to drive peak seasonal premiums [2].