Cambridge ON, [Feb. 3, 2026] – Canadians are preparing for a year of ambitious travel spending, according to Allianz Global Assistance Canada’s (Allianz) latest Vacation Confidence Index Study. Total vacation spending is projected to reach an unprecedented $47.6 billion in 2026, a 22 per cent increase over last year, signaling a resilient desire to travel despite financial headwinds.
The average Canadian’s vacation budget continues to rise, now sitting at $4,169 for 2026. Rather than taking more frequent vacations, many travellers are choosing to channel larger budgets into fewer, more meaningful getaways.
Spending patterns reveal a widening divide between domestic and international travel. Canadians planning trips abroad, particularly to Europe or other long-haul destinations, are allocating an average of $6,354, almost triple what they expect to spend on travel within Canada ($2,398). This shift suggests that while rising costs and a weaker Canadian dollar are prompting many to scale back the number of trips they take, those who do travel are opting for major, experience-driven vacations.
Economic pressure remains the strongest force shaping travel behaviour in 2026. Among Canadians opting out of travel this year, 63 per cent cite financial limitations, while 36 per cent cite economic uncertainty. Even among those committed to taking a vacation, nearly half say they will be adjusting plans because of the weak Canadian dollar. One in three Canadians overall say the current economic climate has led them to plan fewer trips, or to seek more affordable destinations. These findings reflect a broader trend of Canadians recalibrating travel plans amid inflation, higher interest rates and global instability.
Different age groups are impacted in different ways. Canadians aged 55 and older are the most likely to say their plans remain unchanged, while those aged 35-54 are the most likely to reduce their travel plans. Still, 81 per cent of travellers say they “desperately need a vacation” in 2026, reinforcing that travel continues to play a critical role in Canadians’ wellbeing.
“Canadians are clearly feeling the pressure of the current economic environment, but their desire to get away is stronger than ever,” said Tayjua Squire, Manager, Corporate Communications at Allianz. “Whether they are travelling across the country or around the world, Canadians want their time away to be stress-free. Travel insurance plays an important role in that. It helps ensure that no matter the destination, travellers are protected from unexpected disruptions that could impact their plans. As travel budgets rise, particularly for long‑haul international trips, travellers want the peace of mind that comes with reliable protection,”
Seven in 10 (72 per cent) Canadians planning to travel in 2026 say they feel confident that travel insurance would safeguard them from unexpected disruptions such as health emergencies, flight cancellations or natural disasters. With international travel budgets growing and global unpredictability becoming the norm, Canadians increasingly view travel insurance as a practical and essential part of trip planning.
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