Canadians Ditch US Travel for Japan, Mexico and Europe Amid Political Tensions and Exchange Rate Issues

Canadians are opting for destinations outside the US due to political tensions and a weak Canadian dollar. Travel to Mexico, Japan, and European destinations has surged by nearly 30%. The number of overseas trips is still growing, with Japan and Portugal seeing significant increases in Canadian travelers. The Conference Board of Canada's travel intentions survey shows a decrease in US travel plans among Canadians, with some destinations benefiting from the Canadian dollar's weakness against the US dollar.

The American travel sector is poised to receive a significant boost from a surge in outbound travel from India, thanks to new airline partnerships aimed at strengthening air links between the two nations. This strategic shift comes at a crucial time, as the sector faces a slump in Canadian tourist arrivals due to an ongoing travel boycott [1].

The Canadian travel boycott, driven by geopolitical tensions and visa processing delays, has led to a noticeable decline in Canadian bookings for US destinations. Tourism boards across states like Florida, New York, and California have reported significant drops in Canadian bookings for the 2025 summer season [1]. This has raised concerns for US destinations that heavily rely on Canadian travelers for seasonal tourism spikes.

India, however, presents a promising alternative. With a rising middle class, expanding disposable income, and increased access to passports, India has emerged as one of the world’s fastest-growing outbound tourism markets. According to the World Travel & Tourism Council (WTTC), global international visitor spending is projected to reach $2.1 trillion in 2025, with India positioned as one of the largest contributors to that growth [1].

Recognizing this potential, Delta Air Lines has joined forces with IndiGo to launch an expansive alliance connecting India with the US and Europe. The partnership aims to streamline and strengthen long-haul travel between the two countries, creating a seamless bridge between major Indian cities and key US markets. Delta plans to resume direct flights between Atlanta and Delhi, pending regulatory approval, while IndiGo gears up to launch its own long-haul services [1].

The formation of a major new airline alliance involving IndiGo, Delta Air Lines, Air France-KLM, and Virgin Atlantic further underscores the strategic importance of this partnership. This alliance aims to streamline long-haul travel between India, the US, and Europe by integrating flight schedules, expanding codeshares, and offering seamless connections across dozens of cities [1].

IndiGo’s ambitious fleet expansion, including the order for 30 additional Airbus A350 aircraft, signals the airline’s intention to pivot from a regional low-cost carrier to a global long-haul operator. This move will allow IndiGo to connect major Indian gateways such as Delhi, Mumbai, and Hyderabad to international hubs across Europe and North America [1].

With multiple airline partnerships now in play, and travel sentiment in India higher than ever, the US could tap into a fresh wave of inbound travelers just as it faces cooling demand from Canada. The US travel sector, still recovering from post-pandemic shocks, may find its recovery accelerated by this timely pivot to India [1].

While the Canada travel boycott may continue to pose challenges for traditional US tourism markets, new airline partnerships and the growing appetite for international travel from India could redefine the path forward. With smart coordination, targeted marketing, and continued investment in bilateral air services, India may become the bridge that helps the US travel sector not just recover—but grow stronger than before.

References:
[1] https://www.travelandtourworld.com/news/article/america-travel-sector-could-get-a-boost-from-india-with-new-airline-partnerships-amid-canada-travel-boycott/