CAMBRIDGE, ON — Just a few months ago Canadians were feeling bullish on 2025 travel plans, despite economic concerns.
How much have those intentions changed now that tariff and trade war talk dominate the news cycle? Not to mention rising uncertainty about travelling to the U.S., Canada’s biggest outbound travel destination, in the wake of fallout from the U.S. election.
The Canadian travel industry is about to find out.
March Break getaways are now just weeks away, plus many travellers are looking ahead to spring and summer vacations.
Newly released results from Allianz Global Assistance Canada’s 8th annual Vacation Confidence Index Study show that Canadians’ anticipated average 2025 vacation budget remains steady at $4,012 (compared to $4,028 in 2024).
However the survey is based on an Ipsos survey conducted Nov. 1-6, 2024, among a representative sample of 2,001 Canadian adults.
As the travel industry well knows, the U.S. election that brought President Trump back to power was Nov. 5, and a multitude of changes since that date may have many Canadians rethinking their 2025 travel plans.
What did Canadians have in mind for their 2025 getaways back when the survey was taken?
The travel industry will find out if these findings still hold true …
- Canadians planned to spend $25.5 billion on travel in 2025 despite economic concerns,
- Nearly 7 in 10 Canadians 66% viewed an annual vacation as important, with those from higher-income households ($100K+) and university graduates leading the trend at 84% and 80% respectively
- Households earning $100K+ planned to spend an average of $5,481, while those earning under $40K anticipated a budget of $2,611
- Financial concerns remained the biggest barrier to travel, cited by 60% of survey respondents, with additional hurdles including time constraints and personal obligations
- Younger Canadians (aged 18-34) were most eager to travel, with 73% stressing the importance of an annual vacation
- Quebec residents (75%) were most likely to consider vacations essential, compared to lower figures in B.C. (58%) and Atlantic Canada (57%)
A finding that likely won’t change no matter where Canadians travel, or how much they spend: Nine out of 10 (90%) of Canadians said they planned to secure travel coverage, either through direct purchase or employer/credit card benefits.
“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, VP Marketing & Insights, Allianz Global Assistance Canada.
“With financial pressures top of mind, it’s encouraging to see Canadians recognizing the importance of travel insurance to safeguard their trips,” he 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.”
