The ongoing high cost of living continues to impact spending plans but this time the victim is holiday trip-planning.
According to Allianz Global Assistance Canada’s (Allianz) annual Vacation Confidence Index Study the biggest barrier to holiday trip planning, this year, are limited funds and the higher cost of goods and services.
"This year’s Vacation Confidence Index Study highlights how economic pressures are influencing Canadians’ travel decisions," explains Allianz’ Vice-President of Marketing and Insight, Dan Keon, in a statement released regarding the survey.
"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."
Now in its eighth year, the Allianz study found that only 35% of Canadians expressed confidence that they will take a winter vacation this year, a 12-point drop from last winter.
Financial barriers to travel
In the short term, many Canadians are opting to stay home for the holidays, with only 17% planning out-of-province travel during the holiday season. This decline aligns with continued financial pressures, as 38% of Canadians cite high travel costs as their main holiday travel concern.
Looking ahead to 2025, 60% 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 at 60%.
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% of travellers expressing a desire for "revenge travel" this year – down 10 points from 2023 and 21 points from 2022.
Travel remains important to Canadians
Although Canadians are scaling back, the study reveals a strong desire to travel despite these barriers, with 66% of 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% of travellers intend to secure some form of travel coverage for upcoming travel, including through work benefits, credit card coverage or some other means.
Survey methodology
The Vacation Confidence Index is based on an Ipsos survey conducted from November 1 to 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.
This article Canadians staying home for the holidays: High cost of living is biggest block to holiday travel plans originally appeared on Money.ca
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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