Allianz Global Assistance Canada’s 2025 Vacation Confidence Index Study reveals declining confidence in travel plans
Cambridge ON, Dec. 12, 2024 – Canadians’ travel intentions are expected to soften in 2025, as revealed in Allianz Global Assistance Canada’s (Allianz) 8th annual Vacation Confidence Index Study. However, high living costs may not be the only contributing factor.
Conducted in partnership with Ipsos, the Canadian travel insurance provider’s study indicates that winter travel intentions will see a dip, with 35 per cent of Canadians expressing confidence that they will take a winter vacation, a 12-point drop from last winter.
In the short term, many Canadians are opting to stay home for the holidays, with only 17 per cent planning out-of-province travel during the holiday season. This decline aligns with continued financial pressures, as 38 per cent of Canadians cite high travel costs as their main holiday-travel concern.
Looking ahead to 2025, 60 per cent of Canadians plan to travel next year – down 10 points from 2024. Among those not planning to travel, financial considerations continue to be the main barrier (60 per cent).
In addition to financial concerns, the survey results indicate Canadians’ desire to make up for lost travel time following the pandemic may finally be waning, with 29 per cent of travellers expressing a desire for “revenge travel” this year – down 10 points from 2023 and 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 per cent) 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 per cent 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 highlights the growing awareness of travel insurance as a key safeguard, providing peace of mind during uncertain times.
“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. 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. As always, Allianz is here to support Canadians when they need it most.”
When it comes to travel, scrimping on insurance could cost travellers more in the long run. Trip cancellations, unexpected travel interruptions and medical emergencies can lead to significant, unplanned expenses. Travel insurance provides a safety net, giving Canadian travellers financial protection so they can enjoy their trips worry-free.
For more information about travel insurance solutions, visit Allianz’s website.
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