Exploring the great outdoors, relaxing by a lake, walking along the coastline, or discovering a new city – there’s nothing quite like a summer getaway in Canada. However, the rising costs of domestic travel are becoming noticeable for many Canadians this season. This surge in prices is attributed to the increased demand for local travel options, with more Canadians choosing to explore their own country rather than venturing across the border to the U.S.
“Canadians are increasingly opting to travel within Canada,” stated Frédéric Dimanche, a professor at the Ted Rogers School of Hospitality and Tourism Management at Toronto Metropolitan University. The travel industry, still recovering from pandemic losses, coupled with inflation, higher operational costs, and heightened demand, is leading to elevated prices for consumers, especially in urban areas, as Dimanche explained to CBC News.
For some potential travelers, the expenses are simply too high to justify. Natasha Beitman Brener, a lawyer from Kingston, Ont., had planned a five-day road trip with her mother this summer but was taken aback by the steep accommodation prices. Various destinations they considered would have cost between $3,000 and $5,000 for five days, with accommodation alone amounting to $2,000, prompting them to cancel their trip.
Canada’s tourism sector is witnessing a surge in interest from domestic travelers, partly as a means of supporting local communities, according to Amy Butcher, vice-president of public affairs at the Tourism Industry Association of Canada. Domestic travel is on the rise, with fewer Canadians traveling to the U.S. this summer. Statistics show a decline in cross-border travel, with a notable increase in spending on accommodations by Canadian residents in the first quarter of 2025.
Flight Centre Canada reported a significant increase in domestic travel bookings this summer, a departure from the usual trend where the majority of Canadian bookings are for international destinations. This shift is attributed to Canadians opting to stay within the country rather than traveling abroad.
Hotel prices in Canada have seen a three percent increase in average daily rates compared to last year. Last-minute accommodation options for families are also proving to be expensive, with costs ranging from $2,000 for a week-long cottage rental in southern Ontario to $1,200 to $2,300 for four nights in a Halifax hotel. The demand for accommodations near tourist hotspots is high, with some campsites selling out rapidly, necessitating advanced bookings.
The recent introduction of the Canada Strong Pass, offering free access to historic sites and parks, aims to boost domestic tourism. However, the pass does not impact hotel and flight prices, which continue to rise due to high demand and limited availability, driving up costs for travelers like Brener.
Despite the challenges, Brener remains hopeful for future travel plans and is considering off-peak travel times to manage costs. The current scenario presents Canadians with tough decisions as they navigate through expensive local travel options.