Despite not being able to afford one, many Canadians are planning to take a holiday this year anyways as they battle inflation fatigue with travel plans, according to a new survey. The seventh annual Vacation Confidence Study from Allianz Global Assistance’s (Allianz) says the average vacationing family intends to spend over $4,000 on their vacation in 2024.

Canadian households are projected to spend $30 billion on trips this year, despite ongoing economic concerns, reports the survey, with over a quarter of respondents saying they will be spending more on vacations this year compared to 2023. However, with vacation inflation outpacing other industries, the study found that 60% of travellers plan to scale back their plans this year due to rising costs.

According to the survey, anticipated vacation spend is strongly related to income. The highest earning households ($100,000 and above) will spend more than twice as much as low-income households ($40,000 and under) – $5,926 vs. $2,563.

“Our study revealed that vacation confidence has rebounded to pre-pandemic levels, with 70% of Canadians planning to travel in 2024,” said Tayjua Squire, Manager of Corporate Communications at Allianz. “Vacation confidence is highest – 85% – among high-income households.”

She adds, “Affordability is a huge concern among consumers, but they are getting inflation fatigue. As a result, Canadians are prioritizing travel in their budget even if they are stretched thin. Almost half of Canadian travellers say they can’t afford a vacation this year but are taking one anyway.”

Among Canadians who are not confident in taking a vacation in 2024, the biggest barrier is an unwillingness to spend money on vacations. This is the greatest barrier across demographic groups and regions in the country.

Squires points out that one way for travellers to avoid unexpected expenses, and protect their vacation investments, when out of province is by taking travel insurance. “Travel protection is a fraction of the potential cost of healthcare abroad if a medical emergency occurs,” she says.