Allianz Study Projects Record Canadian Travel Spending In 2026

Despite ongoing economic uncertainty, Canadians are signalling a strong and resilient appetite for travel in 2026, according to Allianz Global Assistance Canada’s latest Vacation Confidence Index Study. Total vacation spending is projected to reach a record-breaking $47.6 billion next year, a 22 per cent increase over last year.

Rather than travelling more often, Canadians are increasingly prioritizing fewer, higher-value vacations. The average vacation budget has climbed to $4,169 for 2026, reflecting an industry shift toward more intentional, experience-driven travel.

Spending intentions also highlight a growing divide between domestic and international travel. Canadians planning trips abroad—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. While a weaker Canadian dollar and rising costs are prompting many travellers to reduce the number of trips they take, those who do travel are increasingly opting for “once-in-a-while” journeys that justify a larger investment.

At the same time, financial pressure remains a defining factor in travel decision-making. Among Canadians not planning to travel in 2026, 63 per cent cite financial constraints, while 36 per cent point to economic uncertainty. Even among travellers who are moving ahead with vacation plans, nearly half say they are adjusting their travel choices because of currency fluctuations.

Overall, one in three Canadians report planning fewer trips or choosing more affordable destinations.

Age demographics reveal further nuance. Canadians aged 55 and older are the least likely to change their travel plans, suggesting continued stability in the mature traveller market. In contrast, those aged 35 to 54 are the most likely to scale back, reflecting the financial pressures faced by mid-career households. Yet across all age groups, the emotional pull of travel remains strong: 81 per cent of travellers say they “desperately need a vacation” in 2026, reinforcing travel’s role in personal wellbeing.

As budgets rise—particularly for international trips—travel protection is becoming a standard part of the planning process. Seventy-two per cent of Canadians planning to travel in 2026 say they feel confident that travel insurance would protect them from unexpected disruptions such as medical emergencies, flight cancellations, or natural disasters.