Allianz: Canadians to spend record $47.6B on travel

Canadians are projected to spend a record $47.6 billion on vacations in 2026, according to Allianz Global Assistance Canada’s latest Vacation Confidence Index Study. 

Allianz says that’s a 22 per cent increase over last year, suggesting demand remains strong despite financial headwinds.

The company reports the average vacation budget is now $4,169 for 2026. 

Rather than taking more trips, Allianz says many travellers are putting larger budgets toward fewer getaways.

International budgets outpace domestic travel

Allianz’s study points to a widening gap between domestic and international travel spending. 

Canadians planning trips abroad — particularly to Europe or other long-haul destinations — are budgeting an average of $6,354, compared with $2,398 for trips within Canada.

Allianz suggests that rising costs and a weaker Canadian dollar are pushing some Canadians to cut the number of trips they take, while those who do travel are leaning into larger, experience-driven vacations.

Economic pressure shapes 2026 travel plans

Among Canadians who aren’t travelling in 2026, 63 per cent cite financial limitations and 36 per cent cite economic uncertainty. 

Even among those who plan to travel, nearly half say they’ll adjust 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 seek more affordable destinations.

By age group, Canadians 55+ are the most likely to say their plans are unchanged, while those aged 35–54 are most likely to scale back. 

Still, 81 per cent of travellers say 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,”

Allianz also reports that 72 per cent of Canadians planning to travel in 2026 say they feel confident travel insurance would protect them from disruptions such as health emergencies, flight cancellations, or natural disasters.

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