CAMBRIDGE, ON — Canadians are expected to spend a record $47.6 billion on vacations in 2026, according to new research from Allianz Global Assistance Canada, pointing to a growing preference for fewer but more meaningful trips despite ongoing economic pressures.
Findings from Allianz’s latest Vacation Confidence Index Study show projected vacation spending is up 22% year over year, reflecting a resilient appetite for travel even as inflation, interest rates and currency fluctuations continue to shape consumer behaviour. The average Canadian vacation budget has climbed to $4,169 in 2026, with many travellers opting to allocate larger budgets to single, experience-driven trips rather than multiple shorter getaways.
The data reveals a widening gap between domestic and international travel spending. Canadians planning international travel, particularly to Europe and other long-haul destinations, expect to spend an average of $6,354, nearly three times the $2,398 budgeted for travel within Canada. The trend suggests that while rising costs and a weaker Canadian dollar are prompting travellers to reduce the number of trips they take, those who do travel are prioritizing high-value and experience-driven vacations.
Economic pressure remains the dominant factor influencing travel decisions in 2026. Among Canadians choosing not to travel this year, 63% cite financial limitations, while 36% point to broader economic uncertainty. Nearly half of travellers who still plan to vacation say they will adjust their plans due to the weak Canadian dollar, and one in three Canadians overall report that the current economic climate has led them to plan fewer trips or seek more affordable destinations.
The impact of these pressures varies by age group. Canadians aged 55 and older are the least likely to change their travel plans, while those aged 35 to 54 are the most likely to scale back. Still, demand for travel remains strong across demographics, with 81% of travellers saying they “desperately need a vacation” in 2026.
“Canadians are clearly feeling the pressure of the current economic environment, but their desire to get away is stronger than ever,” said Tayjua Squire, Manager, Corporate Communications at Allianz. “Whether they are travelling across the country or around the world, Canadians want their time away to be stress-free. Travel insurance plays an important role in that. It helps ensure that no matter the destination, travellers are protected from unexpected disruptions that could impact their plans. As travel budgets rise, particularly for long-haul international trips, travellers want the peace of mind that comes with reliable protection.”
The study also highlights growing confidence in travel insurance among Canadians. Nearly three-quarters (72%) of travellers planning trips in 2026 say they believe travel insurance would protect them against unexpected disruptions such as medical emergencies, flight cancellations or natural disasters. As international travel budgets rise and global uncertainty persists, travel insurance is increasingly being viewed as a core component of trip planning rather than an optional add-on.
