'Home for the holidays': Canadians' winter vacation plans dip amid economic pressures Allianz Global Assistance Canada's 2025 Vacation Confidence Index Study reveals declining confidence in travel plans
CAMBRIDGE, ON, Dec. 12, 2024 /CNW/ - 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.
About Allianz's Vacation Confidence Index
The Vacation Confidence Index is based on an Ipsos survey conducted from Nov. 1-6, 2024, among a representative sample of 2,001 Canadian adults. The study examines year-over-year trends in vacation intentions, barriers and the evolving role of travel insurance in Canadians' travel plans.
About Allianz Global Assistance Canada
For over 35 years, Allianz Global Assistance has supported travelling Canadians and visitors when they need it most with value-added travel insurance and assistance services. We bring our passion for assisting people to life every day through our partnerships with well-known brands in the broker, travel and financial services markets. Allianz Global Assistance is a specialist brand of Allianz Partners. For more information, visit the Allianz Global Assistance Canada website.
Travel insurance is administered by Allianz Global Assistance, which is a registered business name of AZGA Service Canada Inc. and AZGA Insurance Agency Canada Ltd. Allianz Global Assistance provides claims and travel assistance services on behalf of the insurance company. Travel insurance does not cover everything. For complete terms, conditions, limitations and exclusions, please refer to the policy.
SOURCE AZGA Service Canada Inc.
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