Weak Dollar Taking A Toll
An inaugural Allianz Global Assistance 2016 Canadian Winter Vacation Confidence survey reveals that 58% of Canadians are not confident they will be taking a winter vacation this year.
The survey, conducted by Ipsos, also revealed that among the 42% of Canadians who are confident they will be taking a vacation this winter, the average anticipated spend per household will remain fairly flat (58%) or higher than the previous year’s winter vacation (16%).
“It is an unfortunate reality that more than half of Canadians have a low level of confidence that they will be taking vacation this winter,” said Dan Keon, director, Marketing and Communications, Allianz Global Assistance. “One concern for Canadians considering travel in winter could be the costs of cancellation, especially when you look at the average cost Canadians say they will spend on a winter vacation – $2,593.20 per household.”
He added, “This is a significant budget for families which can be easily threatened by unexpected circumstances such as inclement weather. In those cases, unprotected cancellations could place the entire vacation budget at risk. Travel insurance can typically recover up to 100% of eligible prepaid travel-related expenses lost due to covered reasons for cancellations, such as an unforeseen illness or government advisory restricting travel to your planned destination.”
A popular travel choice for many Canadians is to travel south to the United States. However the survey, conducted in early November, revealed that the current value of the Canadian dollar against the US dollar could prevent Canadians (56%) from travelling to the US. The survey showed that a portion of Canadians have actually already changed their travel plans to bypass the US in the short term.
“While the US remains the top outbound destination for Canadians, the current value of the Canadian dollar against the US dollar is clearly coming into play for potential vacationers,” said Keon.
“As Canadians, we highly value and look forward to our vacation plans as an opportunity to spend time with loved ones and unwind from our day-to-day stresses,” continued Keon. “The survey allowed us to quantify the existing ‘Vacation Confidence Deficit,’ but also showed that 36% of Canadians haven’t had a vacation for more than two years. Clearly many Canadians all across the country are in need of a well-deserved break.”
Looking ahead, the picture brightens as a larger majority of Canadians (68%) do expect to take a vacation within the next 12 months.
Additional Survey Results:
- Men (47%) are more confident than women (37%) that they will take a winter vacation.
- While men (69%) and women (70%) find annual vacations almost equally important, men (40%) are more likely than women (31%) to take an annual winter vacation.
- Canadian households with kids (49%) are more confident than those without kids (40%) that they will take a winter vacation.
- Nearly half of Canadians took their most recent vacation within the past 12 months, while one in three Canadians have not been on vacation in more than two years.
- Canadian households with an income above $100,000 are the most likely (59%) to take an annual winter vacation, with percentages steadily increasing as disposable income increases: Less than $40,000 (24%), $40,000-59,999 (34%) and $60,000-99,999 (46%).
- Households with children expect to spend just over the national average on their vacation’s travel, accommodation and entertainment costs – $2,759.
- At $3,394.50, Canadians aged 55+ anticipate spending much more than the national average per household on their vacation.
- When compared to the United States, Europe, Great Britain and Mexico, China is the destination that across the board all demographics are the least likely to visit regardless of how the Canadian dollar compares to the local currency.
- When looking at vacation plans in the past 12 months, Canadians aged 55+ (68%) allow the value of the Canadian dollar to influence their travel plans the least.
