Canadians’ 2026 Travel Plans Soar With A Record-Breaking Forty-Seven Billion Dollars In Spending, But Economic Hurdles Loom Large For Many Budget-Conscious Travelers

Canadians are preparing for a travel boom in 2026, with vacation spending expected to reach a record Forty-Seven Point Six Billion Dollars. This surge comes despite economic uncertainties, including inflation and a weak Canadian dollar, which have impacted many people’s financial outlook. While some Canadians are adjusting their travel plans by opting for more affordable destinations or fewer trips, the majority remain determined to explore the world, reflecting the deep-rooted desire for travel. The increase in vacation budgets demonstrates that, for many, the need for relaxation, adventure, and escape outweighs the economic pressures, making 2026 a landmark year for the Canadian travel industry.

A significant 81 percent of Canadians are eager to take a vacation, according to a recent survey conducted by Ipsos for Allianz Global Assistance Canada. With over 2,000 respondents, the study revealed that many Canadians are planning to travel in 2026 and anticipate spending more on their trips than in previous years.

Total vacation spending is projected to reach $47.6 billion in 2026, marking a 22 percent increase compared to 2025. On average, Canadian households are budgeting $4,169 for travel, with those planning international trips allocating $6,354 per journey.

However, not all Canadians are planning lavish getaways. Approximately 31 percent of respondents expressed uncertainty about their ability to travel this year, with economic factors cited by the majority as the main reason. Of those unsure about their travel plans, 60 percent pointed to financial challenges as a barrier to travel.

The survey also highlighted the impact of the weak Canadian dollar on travel decisions. Nearly half of the respondents (48 percent) stated that they would adjust their plans due to the currency’s downturn. For some, this means choosing more affordable destinations, with 17 percent indicating they will seek out cheaper locations for their trips. Additionally, a third of Canadians are planning fewer trips overall due to the broader economic climate, including inflation, rising interest rates, and geopolitical factors.

Age also plays a significant role in how economic conditions and geopolitics influence travel plans. Among respondents, older Canadians (those over 55) were the least affected by such factors, with 53 percent reporting that their travel plans were unaffected by inflation, interest rates, or global political tensions. In contrast, only 40 percent of individuals aged 18-34 and 35 percent of those aged 35-54 felt similarly unaffected.

This divide suggests that younger Canadians may be more sensitive to the current economic pressures, potentially leading them to reconsider their travel choices in 2026. Conversely, older Canadians, who may have more financial stability or fewer commitments, are less likely to let external factors dictate their travel behavior.

As a result, the Canadian travel landscape in 2026 appears to be a mix of cautious optimism and economic realism. While many are determined to travel and increase their spending, there is a notable shift towards more budget-conscious decisions, particularly for younger Canadians. The combination of a weakening currency and ongoing economic challenges will likely shape how Canadians approach vacations in the year ahead, with some prioritizing cost-effective destinations and fewer trips overall.

Despite the financial concerns, the survey highlights a strong desire among Canadians to explore new destinations, reflecting the importance of travel as a means of relaxation and escape. As the year unfolds, the impact of these economic factors will continue to influence travel patterns, with many Canadians making adjustments to their vacation plans in response to the changing economic landscape.

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