Canadians are preparing to spend an unprecedented $47.6 billion on vacations in 2026, a 22% increase over last year, according to a new study by Allianz Global Assistance Canada.
The Vacation Confidence Index Study reveals the average Canadian vacation budget has climbed to $4,169 for 2026. Rather than taking more frequent trips, travellers are channelling larger budgets into fewer, more meaningful getaways.
Domestic tourism has been particularly strong. Canada’s tourism sector posted a record‑high summer in 2025, generating nearly $60 billion in revenue, largely from Canadian travellers exploring destinations across provinces and territories.
A significant gap has emerged between domestic and international travel spending. Canadians planning trips abroad, particularly to Europe or other long-haul destinations, are allocating an average of $6,354—nearly triple what they expect to spend on travel within Canada, at $2,398. Air Canada, anticipating continued demand for premium international travel, announced expansions to its winter 2026 flight network with new direct routes to Europe and Latin America.
Economic pressure remains the strongest force shaping travel behaviour. Among Canadians opting out of travel this year, 63% cite financial limitations, while 36% cite economic uncertainty. Nearly half of those committed to taking a vacation say they will adjust their plans due to the weak Canadian dollar.
“Canadians are clearly feeling the pressure of the current economic environment, but their desire to get away is stronger than ever,” said Tayjua Squire, manager of corporate communications at Allianz.
One in three Canadians overall say the current economic climate has led them to plan fewer trips or seek more affordable destinations. Canadians are travelling less to the United States, with transborder air passenger numbers down for much of 2025. The findings reflect a broader trend of Canadians recalibrating travel plans amid inflation, higher interest rates, and global instability.
Different age groups are affected in different ways. Canadians aged 55 and older are the most likely to say their plans remain unchanged, while those aged 35-54 are the most likely to reduce their travel plans.
Despite economic challenges, 81% of travellers say they desperately need a vacation in 2026, reinforcing that travel continues to play a critical role in Canadians’ well-being.
Travel insurance is gaining importance as budgets grow. Seven in 10 Canadians planning to travel in 2026 say they feel confident that travel insurance will safeguard them from unexpected disruptions such as health emergencies, flight cancellations, or natural disasters.
“As travel budgets rise, particularly for long-haul international trips, travellers want the peace of mind that comes with reliable protection,” Squire said.
The Vacation Confidence Index is based on an Ipsos survey conducted from Oct. 20 to 22, 2025, among a representative sample of 2,001 Canadian adults. The study examines year-over-year trends in vacation intentions, barriers and the evolving role of travel insurance in Canadians’ travel plans.
