A new CIBC poll found that rising travel costs continue to shape holiday plans, with implications for travel insurance demand and claims trends.
According to the survey, 79% of Canadians said travel has become less affordable over the past five years. As a result, 62% plan not to travel this holiday season, citing budget limits or prioritizing saving.
Among those travelling, fewer are planning international trips, while many opt for domestic or provincial destinations. Nearly one in five travellers said they plan to use credit card rewards to offset travel costs — an approach that could influence how and when they purchase travel insurance.
Industry data showed that travel insurance claims have been rising, reflecting the financial impact of travel disruptions. In 2024, emergency medical claims overtook trip cancellations as the most common payout category, with average emergency medical payouts around $1,654 and travel delay claims also increasing in frequency and cost. Even routine events such as delayed flights or missed connections can generate payouts in the hundreds or thousands of dollars, while extreme medical or evacuation claims can reach tens of thousands. This highlights the importance of securing comprehensive travel coverage, even for domestic trips, to mitigate potential financial losses.
CIBC noted that smart planning can help travellers manage both costs and risk. Consumers are encouraged to set realistic travel budgets, leverage rewards points, compare insurance options, and consider consulting financial advisors to ensure adequate protection for themselves and their families.
Carissa Lucreziano, vice-president, Financial Planning and Advice at CIBC, said Canadians are showing resilience and adaptability this holiday season, focusing on connection, comfort, and making informed financial decisions. For those who do travel, securing travel insurance remains a key tool in managing risk and safeguarding against unexpected expenses.
