Canadians are preparing to spend a record amount on travel this year, according to Allianz Global Assistance Canada’s (Allianz) latest Vacation Confidence Index Study. Total vacation spending is projected to reach an unprecedented $47.6 billion in 2026, a 22% increase over last year, signaling a resilient desire to travel despite financial headwinds.
The average Canadian’s vacation budget continues to rise, now sitting at $4,169 for 2026. Rather than taking more frequent vacations, many travellers are choosing to channel larger budgets into fewer, more meaningful getaways.
Meanwhile, spending patterns reveal a widening divide between domestic and international travel.
Canadians planning trips abroad, particularly to Europe or other long-haul destinations, are allocating an average of $6,354, almost triple what they expect to spend on travel within Canada ($2,398). This shift suggests that while rising costs and a weaker Canadian dollar are prompting many to scale back the number of trips they take, those who do travel are opting for major, experience-driven vacations.
Economic pressure remains the strongest force shaping travel behaviour in 2026. Among Canadians opting out of travel this year, 63% cite financial limitations, while 36% cite economic uncertainty. Even among those committed to taking a vacation, nearly half say they will be adjusting plans because of the weak Canadian dollar.
One in three Canadians overall say the current economic climate has led them to plan fewer trips, or to seek more affordable destinations. These findings reflect a broader trend of Canadians recalibrating travel plans amid inflation, higher interest rates and global instability.
Different age groups are impacted in different ways. Canadians aged 55 and older are the most likely to say their plans remain unchanged, while those aged 35-54 are the most likely to reduce their travel plans. Still, 81% of travellers say they “desperately need a vacation” in 2026, reinforcing that travel continues to play a critical role in Canadians’ wellbeing.
Additionally, seven in 10 (72%) Canadians planning to travel in 2026 say they feel confident that travel insurance would safeguard them from unexpected disruptions such as health emergencies, flight cancellations or natural disasters.
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