CAMBRIDGE, ON — Canadians’ travel plans are expected to decrease in 2025, according to the latest findings from Allianz Global Assistance Canada’s 8th annual Vacation Confidence Index Study. 

Rising living costs, among other factors, appear to be influencing decisions to stay closer to home during the holidays.

The study, conducted in partnership with Ipsos, reveals a significant drop in winter travel intentions. Only 35 per cent of Canadians feel confident they will take a winter vacation this season – a sharp 12-point decline compared to last year.

For the holiday period specifically, just 17 per cent of Canadians are planning out-of-province travel, citing financial pressures as a key factor. High travel costs remain a top concern for 38 per cent of respondents.

Looking ahead, only 60 per cent of Canadians intend to travel in 2025, down from 70 per cent in 2024. Financial challenges are the most common barrier, with 60 per cent of non-travellers citing affordability as their main concern.

The survey also suggests that the pandemic-era phenomenon of “revenge travel” is losing momentum. This year, 29 per cent of Canadians expressed a desire to make up for missed travel opportunities, a decline of 10 points from 2023 and 21 points from 2022.

Despite economic hurdles, Canadians’ passion for travel remains strong. The study shows that 66 per cent of respondents believe an annual vacation is important. Additionally, nearly two-thirds plan to purchase travel insurance for their next international trip, while almost 90 per cent intend to secure some form of travel coverage – whether through work benefits, credit card plans, or other options.

“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 encouraging to see that the desire to travel remains strong. Travel insurance is more essential than ever, not only for medical emergencies but also to safeguard trip investments and provide the confidence needed to travel worry-free.”

Keon also noted that skipping travel insurance could lead to significant financial risks, as trip cancellations, interruptions, or medical emergencies can incur unexpected costs.

For more details on travel insurance options, go to https://www.allianz-assistance.ca/en_CA.html.