Increasing Costs Deterring Canadian Appetite for Travel

Another survey is pointing to potential trouble for travel advisors.

A new study from Allianz Global Assistance Canada says only 60% of Canadians plan to travel in 2025. That’s down 14% or 10 points from their 2023 survey, when 70% of Canadians said they hoped to hit the road the following year.

Allianz Global Assistance Canada’s 8th annual Vacation Confidence Index Study, conducted in partnership with Ipsos, also found that 35% of Canadians expressed confidence they would take a winter vacation. That’s down from 47% in last year’s survey.

In the short term, many Canadians are opting to stay home for the holidays, with only 17% planning out-of-province travel during the holiday season, Allianz said.

“This decline aligns with continued financial pressures, as 38% of Canadians cite high travel costs as their main holiday-travel concern.”

A recent survey by Ipsos on behalf of Simplii Financial found that two thirds of Canadians (68%) say they are making compromises when it comes to holiday travel. More than half (56%) said they’d like to travel but it’s unaffordable.

In addition to financial concerns, the Allianz survey results indicate Canadians’ desire to make up for lost travel time following the pandemic may finally be waning, with 29% of travellers expressing a desire for “revenge travel” this year – down 10 points from 2023 and down a full 21 points from 2022.

While Canadians are scaling back, the study reveals a strong desire to travel despite these barriers, with nearly seven in ten (66%) Canadians stating that an annual vacation is important to them.

With financial concerns top of mind, travel insurance continues to play a vital role in the trip planning process, with two thirds of Canadians intending to purchase travel insurance for their next trip abroad. Additionally, nearly 90% of travellers intend to secure some form of travel coverage for upcoming travel, including through work benefits, credit card coverage or some other means.

“This year’s Vacation Confidence Index Study highlights how economic pressures are influencing Canadians’ travel decisions,” said Dan Keon, vice president of marketing and insights at Allianz. “While the aggressive post-pandemic travel rebound appears to be levelling out, it’s great to see that the desire to travel remains strong.”