Generation split: GenZs pick US as older generations avoid it

While Canadians still want to travel, there’s a growing generational divide reshaping where they go in 2026 – particularly when it comes to the United States.

According to the Travel Health Insurance Association of Canada’s (THIA) 2026 Smart Traveller Survey, while 63 per cent of Canadians plan to travel this year, interest in U.S. travel is increasingly concentrated among younger generations, even as older Canadians pull back further.

Along with generational divides, rising costs and political tensions are contributing to long-term shifts in travel behaviour.

Some of the key trends that THIA found emerging in 2026, include:

• A widening generational divide is emerging around U.S. travel: Gen Z Canadians are leading U.S. travel plans in 2026, with 45 per cent surveyed saying they’re likely to travel south of the border, compared to just 8 per cent of Boomers. And among Canadians planning to travel this year, nearly two‑thirds of Gen Z (61 per cent) say the U.S. is on their itinerary, well ahead of Millennials (48 per cent), Gen X (28 per cent), and Boomers (14 per cent).
• Canadians are casting a wider net beyond the U.S.: While the U.S. has historically been the top international destination for Canadians, Europe now firmly ranks as the top international region (24%). At the same time, 36 per cent plan to stay domestic and travel exclusively within Canada.
• Costs and geopolitics are increasingly influencing travel decisions, and it differs by generation. Rising travel expenses remain the top concern overall, while global political tensions are factoring more heavily into where or whether Canadians travel. Political tensions between Canada and the U.S. are one of the biggest barriers for 51% of Boomers, while Gen Z are more constrained with rising costs (36%) and lack of paid time off (22%).

Will McAleer, THIA spokesperson, explained: “We’re seeing a clear generational split among Canadians as they consider both their political views and economic conditions when planning travel.”

McAleer continued: “Despite ongoing political tensions, younger Canadians still show strong interest in travel to the U.S., instead citing rising costs as their biggest barrier to travel. Meanwhile, older travellers continue to be deterred by cross-border political uncertainty. For Gen Z, this combination of cost concerns and desire for US travel – where medical costs are some of the highest worldwide – makes it especially important for younger Canadians to understand their travel health insurance coverage before they go.”

Beyond destination decisions, unexpected medical treatment can be a major risk to travel budgets. Understanding travel health insurance coverage is one way that Canadians can manage that risk and help protect their trip from costly surprises.