Business travel between Canada and the U.S. rebounded in March after suffering a hit in February, as company executives and staff continue to go south of the border despite mounting concerns over travel safety.
Business travel between Canada and the U.S. rebounded in March after suffering a hit in February, as company executives and staff continue to go south of the border despite mounting concerns over travel safety.
Business travel between Canada and the U.S. rebounded in March after suffering a hit in February, as company executives and staff continue to go south of the border despite mounting concerns over travel safety.
After falling 10 per cent in February, travel bookings by Canadian businesses nearly recovered in March—down just 1 per cent from last year, according to data from Corporate Traveller, a subsidiary of major travel agency Flight Centre Travel Group. Corporate Traveller helps small and medium-sized companies book trips and serves clients including Bumble and Aston Martin.
Talking Points
The “substantial pullback” in travel in February occurred when “the rhetoric about tariffs really kicked off,” Chris Lynes, managing director at Flight Centre Travel Group told The Logic.
In spite of the U.S. President Donald Trump’s widening trade war, the agency also hasn’t noticed as much of a slowdown in April. “Businesses in general have to continue to carry on,” he said, suggesting a partial return to “normal.”
In March, Trump issued an order requiring visitors on trips of 30 days or longer to register with the government. Yet given business travellers’ trips are typically short, there also weren’t many concerns about crossing the border, Lynes said. The need for face-to-face negotiations with suppliers or partners who may be affected by tariffs also contributed to the steady travel levels, he said.
Corporate Traveller also saw an uptick in travel within Canada over the past few months and more recently, a growing number of Canadian business trips to Europe and Asia, as customers “diversify their business dealings,” Lynes said.
Laura Pixley, senior director of Agribusiness and International Trade at PR firm ChangeMakers who regularly frequents the U.S. for trade shows, conventions and client meetings, hasn’t changed her monthly travel schedule to the U.S.
“Business continues as usual,” she said, although she’s noticed that the U.S.-bound areas of airports are “slightly quieter” than before. “There are still a lot of folks open to meeting and carrying on business activities.”
“Flights are not full, whereas previously, flights were full or close to full,” Pixley said.
Another PR executive who works for a Toronto startup has noticed the topic of U.S.-Canada relations frequently arises in client calls and meetings. The Logic agreed not to name the source, who did not want to jeopardize their ability to enter the U.S.
“There’s a heightened alert just amongst business professionals about what’s happening,” they said.
At the border, they’ve noticed more scrutiny and follow-up questions than they’re used to. Even as a NEXUS-card holder—a program that’s meant to expedite the crossing process—they are still encountering more questions than usual. Their company plans to open an office in the U.S., but the L-1 visa approval process is getting more challenging, they said.
Meanwhile, overall travel by air and autos has started to slow. The number of Canadian residents returning to the country from the U.S. by vehicle dropped 31.9 per cent year over year to March, according to data from Statistics Canada. Last year, Canada ranked as the top source of international travel to the United States, according to the U.S. Travel Association. The group warned in February that tariffs could affect visitation, and that a 10 per cent decrease in travel from last year’s 20.4 million visits would cost the U.S. travel industry US$2.1 billion in lost spending.
A Toronto-based employee at a tech company that distributes automation parts to the U.S. said that general “tension at the border” has led to the cancellation of some work travel. The employee asked to remain anonymous as they weren’t authorized to speak on the company’s behalf.
This year they are skipping two trade shows they would normally go to. Management has also moved training online, they added. “It just doesn’t make any sense to risk it,” they said.
Public institutions like Alberta Investment Management Corp. have urged employees to abstain from non-essential trips to the U.S., Bloomberg reported, while the federal government has updated its online travel advisory to warn Canadians to “expect scrutiny” at the border.
Loading...
You have shared 5 articles this month and reached the maximum amount of shares available.
CloseIf you would like to purchase a sharing license please contact The Logic support at [email protected].
CloseYou have gifted 0 article(s) this month and have 5 remaining.
Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.
Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.
See the bigger picture with reporters and industry experts in subscriber-exclusive events.
Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.