Canadian travelers are booking fewer U.S. vacations in 2025, and the impact is becoming clear. A new report from Key Data reveals a 21% drop in Canadian bookings for U.S. vacation rentals compared to the same period in 2024—nearly 1,300 fewer reservations so far this year. What’s behind the shift? Increasing political tensions between the two nations may be playing a major role.
In early February, Canada’s Prime Minister issued a statement criticizing new U.S. trade policies and tariff threats, encouraging Canadians to reconsider spending their travel dollars in the U.S. Whether due to political concerns or simply a desire to explore new destinations, many Canadian travelers are choosing alternative locations instead of the U.S. This trend underscores an important lesson for property managers and destination marketing organizations (DMOs): staying on top of booking data is essential for adjusting strategies in real time.
Which U.S. States Are Seeing the Biggest Impact?
For years, Canadian travelers have flocked to U.S. vacation hotspots like Florida, Hawaii, and California. But as tensions between the two countries grow, Canadian visitors are booking elsewhere. Florida has seen a 16% drop in Canadian bookings, while Hawaii is down 14%. Other popular leisure markets—including South Carolina, California, and Colorado—are also feeling the effects, with year-over-year declines as high as 45% from Canadian travelers.
Despite the dip in U.S. travel, Canadians aren’t staying home. Instead, they’re shifting their vacation dollars to other destinations. England has seen over a 30% increase in Canadian bookings, while Barbados has experienced over a 20% rise. Other top choices include France, Ireland, Mexico, the Cayman Islands, and Wales. This shift suggests that Canadian travelers still want to travel internationally—but they’re reconsidering where to spend their money.
Why Property Managers and DMOs Need to Keep An Eye On This
The takeaway for vacation rental professionals? Travel trends can change quickly, and having real-time data is crucial for adapting your strategy. Political, economic, and social factors all impact tourism demand, and failing to react could mean lost revenue. If your business has historically relied on Canadian travelers, now is the time to reassess your approach.
How Property Managers Can Respond
- Evaluate Your Booking Data – Look at your own performance data to see if Canadian traveler patterns are shifting in your market. Are some properties or cities more affected than others? Is demand down across the board, or are certain locations seeing steadier bookings? Are bookings up from U.S. travelers? These are all important issues monitor.
- Expand Your Marketing Reach – If Canadian bookings are slowing, consider targeting new international markets or refocusing on domestic travelers. Adjust your ad campaigns, email marketing, and social media strategies to connect with different audiences. Understanding your feeder markets can help you make this choice!
- Adjust Pricing and Promotions – If demand from a key traveler segment drops, strategic promotions can help fill gaps. Consider discounts on extended stays, added perks for direct bookings, or special incentives to attract new guests.
How DMOs Can Adapt
- Track Regional Trends – DMOs should analyze booking data to see if their area is experiencing a drop in Canadian tourism. If so, shifting promotional efforts to new traveler demographics may be necessary.
- Refine Destination Marketing – If Canadian travelers are choosing Europe over the U.S., DMOs should consider targeting alternative international markets or strengthening campaigns aimed at domestic tourists.
- Partner with Local Businesses – Hotels, rental managers, and tourism boards can collaborate on travel packages, discounts, or incentives to entice additional visitors.
Staying Ahead with Data-Driven Insights
The ability to monitor real-time data allows property managers and DMOs to anticipate changes, adjust their strategies, and uncover new opportunities. Whether it’s targeting different markets, optimizing pricing, or fine-tuning marketing campaigns, staying proactive is the key to staying competitive.
Get the Data You Need to Stay Competitive
Key Data continuously tracks and analyzes global travel trends, providing vacation rental managers, destinations, and investors with the insights they need to succeed. By understanding how traveler behavior is shifting, you can make informed decisions and stay ahead of the competition.
Want to see how your local market is performing? Contact us for a personalized demo.