Inflation remains a concern, but Canadians say they expect to spend almost the same amount on their holidays in 2025 as they did last year.

The 8th annual Allianz Global Assistance Canada Vacation Confidence Index Study said the anticipated average vacation budget for Canadians remains steady at $4,012 for this year; down just $16 from $4,028 in 2024. Which is roughly the cost of three coffee lattes.

Allianz said it expects Canadians to spend $25.5 billion on travel this year. It didn’t state what Canadians spent in 2024, and Open Jaw was unable to get the information.

The vacation survey, conducted by Ipsos on behalf of Allianz, reveals that nearly 7 in 10 Canadians (66%) view an annual vacation as important, with those from higher-income households ($100K+) and university graduates leading the way at 84% and 80%, respectively. However, financial concerns remain the biggest barrier to travel, cited by 60% of survey respondents, with additional hurdles including time constraints and personal obligations.

“While economic uncertainty remains a factor, Canadians’ steady commitment to travel in 2025 reflects their resilience and strong desire for new experiences,” said Dan Keon, vice president of marketing & insights at Allianz Global Assistance Canada. “Our findings indicate that travel is still a valued priority, and Canadians are taking proactive steps to protect their trips with travel insurance.”

Key findings from Allianz’s Vacation Confidence Index Study include:

–            Spending trends: Households earning $100K+ plan to spend an average of $5,481, while those earning under $40K anticipate a more modest budget of $2,611.

–            Travel intentions: Younger Canadians (aged 18-34) are most eager to travel, with 73% expressing the importance of an annual vacation.

–            Regional differences: Quebec residents (75%) are most likely to consider vacations essential, compared to lower figures in British Columbia (58%) and Atlantic Canada (57%)

–            Travel insurance uptake: 90% of Canadians plan to secure travel coverage, either through direct purchase or employer/credit card benefits.