Despite prevailing economic uncertainties, the average vacationing family plans to disburse over $4,000 for their holiday escapades this year.
This is according to the latest Vacation Confidence Study by Allianz Global Assistance, which projected that Canadian households would spend $30 billion on vacations in 2024.
Additionally, over a quarter of the survey’s respondents expressed an intention to increase their vacation spending compared to the previous year.
But even with these plans, 60% of those polled said they would be scaling back due to the surging expenses.
The survey also found a correlation between anticipated vacation expenditure and income, with higher-earning households ($100,000 and above) projecting to spend more than twice as much as their lower-income counterparts ($40,000 and under).
According to the study, higher-earning households expect to spend some $5,926, while lower-income households keep their spending at $2,563.
Tayjua Squire, corporate communications manager, offered some insight on these findings in a company release.
“Our study revealed that vacation confidence has rebounded to pre-pandemic levels, with 70% of Canadians planning to travel in 2024,” said Squire.
“Vacation confidence is highest – 85% – among high-income households. Affordability is a huge concern among consumers, but they are getting inflation fatigue. As a result, Canadians are prioritizing travel in their budget even if they are stretched thin. Almost half of Canadian travellers say they can’t afford a vacation this year but are taking one anyway.”
As for respondents who said that they do not feel confident about their ability to travel in 2024, the main reason they cited was their unwillingness to allocate funds for leisure activities. This sentiment cuts across demographic groups and regions within the country.
“With the pandemic and rising living costs being major obstacles the past few years, Canadians are fatigued and taking vacations anyway,” said Squire.
“With this in mind, we encourage all travellers to protect their vacation investments with travel insurance. Travel protection is a fraction of the potential cost of healthcare abroad if a medical emergency occurs. When the unexpected happens, Allianz will be there to help when travellers need it most.”
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