Ready For The Rebound
In its sixth annual Winter Vacation Confidence Index Survey, Allianz Global Assistance Canada reports that winter vacation confidence among Canadians is on the rise, with travellers planning to spend more on travel than ever before.
The survey – which was conducted by Ipsos for Allianz Global Assistance — reveals that 43% of Canadians intend on taking a vacation this winter, up from just 32% in 2021.
Dan Keon, Vice President, Marketing & Insights at Allianz Global Assistance Canada, observed that: “With travel volumes nipping at the heels of pre-pandemic levels, an overwhelming majority – 84% – of travellers feel they desperately need a vacation this year.”
Keon continued: “A major driver of this ongoing travel comeback is the continued desire for revenge travel, with half of Canadians intending to unapologetically make up for lost vacation time that was postponed due to the pandemic.”
Despite rising travel costs, over half of travellers surveyed say they will be using their pandemic savings on a vacation this year. Consequently, the average anticipated winter vacation spend has increased by 20% to $3,193 since 2021.
Overall, Canadian households are projected to spend around $14.3 billion on vacations in the upcoming year, eclipsing the pre-pandemic high recorded in Allianz’s 2019 annual survey.
While pent-up demand is driving up spending, financial worries may be tempering the increase as 57% of travellers indicated that they will be scaling back vacation plans this year due to inflationary pressures.
Looking ahead to the next 12 months, six in ten Canadians are confident they will take a holiday – up eight points since last year, but still shy of pre-pandemic levels. Continued concerns about the possibility of COVID-19 impacting travel plans is a likely contributor, as expressed by six out of ten respondents.
With both financial and pandemic considerations impacting travellers, Allianz Global Assistance is reminding travellers to plan ahead with travel insurance to protect their travel investments and themselves on their next trip.
Said Keon: “The pandemic has continued to expose the unpredictability of travel and the peace of mind travel protection can bring, as shown by the 74 per cent of Canadians who think travel insurance is equally or more important than before the pandemic.”
He noted that: “As Canadians continue to increase their vacation confidence and venture beyond our borders, we remain committed to being with them every step of the way and ready to help them in the moments that matter most with valued-added travel insurance and assistance services.”
More insights from the sixth annual Allianz Global Assistance Canada Winter Vacation Confidence Index Survey include:
- After dipping during the pandemic, 69% of Canadians are exhibiting renewed attitudes on the importance of an annual vacation (up six points since 2021)
- Out of those who find annual vacations important, 79% are confident they will take one in the next year
- Younger Canadians aged 18-34 are leading the resurgence in winter travel (55%), while those aged 55+ are much less likely to travel (30%)
- Roughly one half (57%) of travellers say they’re scaling back their vacation plans this year and 37% say they can’t really afford a vacation this year
The Winter Vacation Confidence Index Survey was conducted online by Ipsos in November 2022, among a sample of n = 2005 Canadians aged 18+. The results are considered accurate to within +/- 2.5 percentage points, 19 times out of 20.