Canadians will spend $25.5B on travel in 2025, despite economic concerns, Allianz says

Canadians are prioritizing travel in 2025, with total projected vacation spending reaching $25.5 billion, according to Allianz Global Assistance Canada’s (Allianz) eighth annual Vacation Confidence Index Study.

Despite inflationary pressures, the anticipated average vacation budget remains steady at $4,012 ($4,028 in 2024), showing a
continued commitment to leisure travel.

The survey, conducted by Ipsos on behalf of Allianz, reveals that nearly 7 in 10 Canadians (66 per cent) view an annual vacation as important, with those from higher-income households ($100K+) and university graduates leading the trend at 84 per cent and 80 per cent, respectively. However, financial concerns remain the biggest barrier to travel, cited by 60 percent of survey respondents, with additional hurdles including time constraints and personal obligations.

“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 & 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.”

Key findings revealed

Key findings from Allianz’s Vacation Confidence Index Study include:

• Spending trends: Households earning $100K+ plan to spend an average of $5,481, while those earning under $40K anticipate a more modest budget of $2,611.
• Travel intentions: Younger Canadians (aged 18-34) are most eager to travel, with 73 per cent expressing the importance of an annual vacation.
• Regional differences: Quebec residents (75 per cent) are most likely to consider vacations essential, compared to lower figures in British Columbia (58 per cent) and Atlantic Canada (57 per cent).
• Travel insurance uptake: A staggering 90 per cent of Canadians plan to secure travel coverage, either through direct purchase or employer/credit card benefits.

“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.”

When it comes to travel, scrimping on insurance can cost travellers dramatically more in the long run. Trip cancellations, unexpected travel interruptions and medical emergencies can lead to significant, unplanned expenses. Travel insurance can provide a safety net, giving Canadian travellers financial protection so they can enjoy their trips worry-free.

For more information, visit Allianz’s website.