Despite inflation and infections, winter vacation confidence among Canadians is on the rise and travellers plan to spend more on travel than ever before, says a new survey by Allianz Global Assistance Canada.
The Cambridge, Ont.-based insurance company’s just-released sixth annual Winter Vacation Confidence Index Survey says 43% of Canadians plan to take a vacation this winter, up from just 32% in 2021, according to the data compiled by Ipsos for Allianz.
“With travel volumes nipping at the heels of pre-pandemic levels, an overwhelming majority – 84% – of travellers feel they desperately need a vacation this year,” says Allianz VP, Marketing & Insights Dan Keon. “A major driver of this ongoing travel comeback is the continued desire for revenge travel, with half of Canadians intending to unapologetically make up for lost vacation time that was postponed due to the pandemic.”
Despite rising travel costs, over half of travellers surveyed say they will be using their pandemic savings on a vacation this year. Consequently, the average anticipated winter vacation spend has increased by 20% to $3,193 since 2021.
Overall, Canadian households are projected to spend around $14.3 billion on vacations in the upcoming year, eclipsing the pre-pandemic high recorded in Allianz’s 2019 annual survey.
While pent-up demand is driving up spending, financial worries may be tempering the increase as 57% of travellers reported they will be scaling back vacation plans this year due to inflationary pressures.
Looking ahead to the next 12 months, six in 10 Canadians are confident they will take a holiday – up eight points since last year, but still shy of pre-pandemic levels. Continued concerns about the possibility of COVID-19 impacting travel plans is a likely contributor, as expressed by six out of 10 respondents.
More insights from the November survey include:
• After dipping during the pandemic, 69% of Canadians are exhibiting renewed attitudes on the importance of an annual vacation (up six points since 2021)
• Out of those who find annual vacations important, 79% are confident they will take one in the next year
• Younger Canadians aged 18-34 are leading the resurgence in winter travel (55%), while those aged 55+ are much less likely to travel (30%)
• Roughly one half (57%) of travellers say they’re scaling back their vacation plans this year and 37% say they can’t really afford a vacation this year
With both financial and pandemic considerations impacting travellers, Allianz says it is important for travellers to plan ahead with travel insurance to protect their travel investments and themselves on their next trip.
“The pandemic has continued to expose the unpredictability of travel and the peace of mind travel protection can bring, as shown by the 74% of Canadians who think travel insurance is equally or more important than before the pandemic,” adds Keon.