Canadians prioritising travel despite rising cost of living

‘Vacation confidence’ continues to grow in the face of financial pressures, with 70 per cent of Canadians saying they plan to take a holiday in 2024, according to Allianz Global Assistance’s seventh annual Vacation Confidence Study, conducted in partnership with Ipsos.

However, while Canadians’ travel intentions may have returned to pre-pandemic levels, with respondents from all age groups expressing a desire to travel, 17 per cent are not confident they will be able to take a holiday, and a third of Canadians have not had one in over two years.

Money remains the primary barrier, cited by 68 per cent of those who are not confident they will take a trip next year. Of those planning to travel, 60 per cent will be scaling back their plans due to inflation.

It’s no surprise, therefore, that travel intentions are strongest among high-income households, at 85 per cent. Canadians over the age of 55 – among the slowest to return to travel in recent years – are also seen to be driving the rise in vacation confidence, and in winter travel intentions in particular. The study suggests that ‘snowbird’ travel will reach 2019 levels again in 2024.

“Despite facing unprecedented challenges in recent years … Canadians’ travel intentions have fully returned to pre-pandemic levels,” said Dan Keon, Vice President, Marketing and Insights at Allianz. “In line with rebounding travel volumes, we’ve seen a recovery in the Canadian consumer’s mindset around the importance and prioritisation of travel. This shift is propelling Canadians’ confidence in taking a vacation this winter to a statistical high point in our seven-year survey.”

Keon added: “Canadians have been heavily impacted by rising living costs, so it’s no surprise that the study found the biggest obstacle to taking a vacation relates to financial pressures. With these challenges in mind, we encourage all Canadians who are planning to travel to include travel insurance in their trip budget. The cost of travel insurance is a fraction of the potentially catastrophic expenses that can arise due to an unexpected medical emergency abroad.”