Higher costs and a levelling out of “revenge travel” are leading to a softening of travel intentions amongst Canadians’ travel intentions for 2025, according to new data from Allianz Global Assistance Canada. Based on its 8th annual Vacation Confidence Index Study (conducted by Ipsos), the insurance provider says only 35% of Canadians are expressing confidence that they will take a winter vacation, a 12-point drop from last year.

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 (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.

While Canadians are scaling back, the study reveals a strong desire to travel despite these barriers, with nearly seven in 10 (66%) 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. 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, VP 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.”

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