A new study shows Canadians are prioritizing travel in 2025, with total projected vacation spending expected to reach $25.5 billion. Travel insurance remains a key consideration among these travellers, with 90% planning to secure coverage through direct purchase or employer and credit card benefits, according to Allianz Global Assistance Canada’s eighth annual Vacation Confidence Index Study.
The survey, conducted by Ipsos on behalf of Allianz, found that 66% of Canadians consider an annual vacation important. Those from higher-income households ($100,000 and above) and university graduates lead this trend, at 84% and 80%, respectively.
Younger Canadians aged 18 to 34 are the most likely to prioritize travel, with 73% saying an annual vacation is important.
In Quebec, 75% consider vacations essential, compared with 58% in British Columbia and 57% in Atlantic Canada.
“While economic uncertainty remains a factor, Canadians’ steady commitment to travel in 2025 reflects their resilience and strong desire for new experiences,” said Dan Keon, vice president of marketing and insights at Allianz Global Assistance Canada. “Our findings indicate that travel is still a valued priority, and Canadians are taking proactive steps to protect their trips with travel insurance.”
Despite inflation, the anticipated average vacation budget remains steady at $4,012, close to $4,028 in 2024, indicating a continued focus on leisure travel. Households earning $100,000 or more plan to spend an average of $5,481, while those earning under $40,000 expect to budget $2,611.
Financial concerns remain the most common barrier to travel, cited by 60% of the respondents. Other obstacles include time constraints and personal commitments.
“With financial pressures top of mind, it’s encouraging to see Canadians recognizing the importance of travel insurance to safeguard their trips,” Keon added. “The travel landscape is more volatile than ever, and travellers are increasingly viewing travel insurance as a vital component of their trip-planning process to provide peace of mind.”
