U.S. Travel Taking a Backseat!

As Canadians pull back on trips to the United States, a significant shift in loyalty point redemptions is underway. With this change, global and local travel destinations, Canadian retailers, and flexible loyalty programs are seeing varying impacts.

Winners: Global Destinations Are Thriving!

Canadians holding loyalty points are looking beyond U.S. borders, exploring alternative travel options. Jason Beales, Chief Strategy Officer at Air Miles, noted, "Collector travel patterns have shifted recently, with a decline in U.S. redemptions." Factors like a weak Canadian dollar, restructuring U.S. trade policies, and heightened economic uncertainty are pushing travelers to explore new locales.

This trend might benefit Canada, as many travelers are keen to invest their dollars domestically. The Caribbean is becoming a go-to spot for Eastern Canadian travelers seeking sun. Meanwhile, destinations in Asia and Europe are also gaining traction!

Losers: The U.S. Tourism Sector