Canadians are showing increased confidence in travel plans for 2026, according to Allianz Global Assistance Canada's ninth annual Vacation Confidence Index Study, pointing to continued demand for travel insurance coverage as more trips are planned.
The survey found that seven in 10 Canadians are confident they will take a vacation this year, up nine percentage points from the prior year. Confidence is highest among families with children, at 77%, and higher-income earners with household incomes above $100,000, at 85%. Younger generations are also more likely to plan travel, with 71% of Gen Z, Millennials and Gen X indicating they expect to take a trip, compared with 63% of Baby Boomers.
The study also showed that 70% of Canadians view annual vacations as important to their wellbeing, with higher levels reported among parents and younger respondents. Allianz said the findings suggest travel is a planned expense for many households in 2026, reinforcing the role of travel insurance in trip planning.
Destination preferences are also shifting. Domestic travel remains the most popular choice, cited by 38% of respondents. Mexico and the Caribbean follow at 24%, while Europe accounts for 15%. Travel to the US declined by eight percentage points compared with last year, reflecting changes in geopolitical and economic considerations.
From an insurance perspective, the findings suggest stable demand for travel insurance products, particularly as travellers diversify destinations and plan higher volumes of trips. Tayjua Squire, manager of corporate communications at Allianz Global Assistance Canada, said rising travel confidence highlighted the need for protection as more Canadians commit to trips. She noted that travel insurance can help address risks associated with travel disruptions and medical events.
The survey results come as insurers monitor post-pandemic travel patterns, claims trends, and shifting traveller behaviour. Higher travel volumes and evolving destinations may influence underwriting assumptions, pricing, and product design, particularly for medical, trip interruption, and cancellation coverage.
