A new study from Allianz Global Assistance Canada has revealed that Canadian winter vacation plans are expected to dip in 2025, as financial constraints continue to weigh on travellers.
According to the 8th annual Vacation Confidence Index Study, conducted in partnership with Ipsos, Canadians’ confidence in taking vacations is dropping, with economic pressures—especially high living costs—leading many to rethink their travel intentions.
The survey indicated that only 35% of Canadians are confident they will take a winter vacation, a 12-point decrease from last year. In fact, during this year’s holiday season, just 17% of Canadians plan to travel outside their province. The report noted this decrease reflects broader concerns about the rising cost of travel, as 38% of respondents cited high expenses as their main travel worry.
Looking toward 2025, the study shows that 60% of Canadians intend to travel next year, but this marks a 10-point drop from 2024. For those not planning to travel, financial barriers remain the dominant factor, with 60% of non-travellers citing cost as the main reason.
The trend suggests that the post-pandemic desire for travel, often referred to as “revenge travel,” may be losing its momentum. The survey found that only 29% of Canadian travellers still have a strong desire to make up for missed trips due to the pandemic, a notable decline from 39% in 2023 and 50% in 2022.
Despite these challenges, the study revealed that the desire to travel remains resilient. Nearly 70% of Canadians (66%) maintain that taking an annual vacation is important to them, showing a continued passion for travel even in the face of financial strain.
The role of travel insurance has become more significant as a result of these concerns. Two-thirds of Canadians plan to purchase travel insurance for their upcoming international trips, and nearly 90% of travellers intend to secure some form of coverage, whether through work benefits, credit card perks, or other means.
Dan Keon, vice president of marketing and insights at Allianz, emphasized the importance of travel insurance in light of ongoing economic pressures. “While the aggressive post-pandemic travel rebound appears to be levelling out, it’s great to see that the desire to travel remains strong,” Keon said.
“Travel insurance is more essential than ever, not only for medical emergencies but to protect trip investments and provide the confidence needed to enjoy travel to the fullest.”
The Allianz Vacation Confidence Index is based on a survey conducted from November 1–6, 2024, with a representative sample of 2,001 Canadian adults.
Do you have something to say about this story? Share your thoughts in the comments below.
