Regional and Domestic Travel: A Key Driver of Canadian Tourism in 2025

Domestic travel is gaining popularity, reshaping tourist preferences and influencing demand for short-term rentals.

06/03/2025 - As airfare costs and inflation impact travellers’ decisions, domestic and regional tourism in Canada is experiencing unprecedented growth. This trend, highlighted by iGMS’s trends report (https://www.igms.com/), is particularly boosting the short-term rental market in small towns and nature retreats.

Why is this trend growing?

✅ Cost and accessibility: Travelling within the country helps save on airfare. Destinations accessible by car or train are convenient and more affordable, particularly for families.

✅ New traveller expectations: Experience matters more than distance, encouraging stays in authentic, less crowded locations. AirDNA reports a 20% increase in bookings for these destinations in 2024.

✅ Environmental awareness: Travellers favour low-carbon footprint stays, strengthening the appeal of local and sustainable tourism.

According to iGMS, 68% of bookings in 2024 were for domestic or regional travel. Accommodations near parks and natural attractions exceeded a 75% occupancy rate during peak season.

Winning strategies for hosts

✔️ Focus on local marketing: Target travellers within a 300 km radius.

✔️ Highlight outdoor activities: Showcase gardens, fire pits, and proximity to nature.

✔️ Develop local partnerships: Collaborate with restaurants, wineries, and tourism operators.

✔️ Adapt accommodations for families and groups: Provide family-friendly amenities such as cribs and well-equipped kitchens.

Regional and domestic tourism is becoming a cornerstone of the short-term rental market. Hosts who adapt to this shift will secure higher occupancy rates and more stable revenue.

👉 For an in-depth analysis and strategic insights, check out the full iGMS report: 2025 Short-Term Rental Industry Trends Report.