When it comes to budgeting for a vacation this year, the magic number for the average Canadian family will be over $4,000.

According to Allianz Global Assistance’s seventh annual Vacation Confidence Study, Canadian households are projected to spend $30 billion on trips this year, despite ongoing economic concerns, with the average vacationing family intending to spend over $4,000 on their vacation in 2024.

Over a quarter say they will be spending more on vacations this year compared to 2023. With vacation inflation outpacing other industries, the study also found that 60% of travellers plan to scale back their plans this year due to rising costs.

And since vacation spend is strongly related to income, the highest-earning households ($100,000 and above) will spend more than twice as much as low-income households ($40,000 and under) – $5,926 vs. $2,563.

“Our study revealed that vacation confidence has rebounded to pre-pandemic levels, with 70% of Canadians planning to travel in 2024,” said Tayjua Squire, Manager of Corporate Communications at Allianz. “Vacation confidence is highest – 85 per cent – among high-income households. Affordability is a huge concern among consumers, but they are getting inflation fatigue. As a result, Canadians are prioritizing travel in their budget even if they are stretched thin. Almost half of Canadian travellers say they can’t afford a vacation this year but are taking one anyway.”

Among Canadians who say they’re not confident they’ll take a vacation in 2024, they cited an unwillingness to spend money on vacations as their biggest barrier.

“With the pandemic and rising living costs being major obstacles the past few years, Canadians are fatigued and taking vacations anyway,” said Squire. “With this in mind, we encourage all travellers to protect their vacation investments with travel insurance. Travel protection is a fraction of the potential cost of healthcare abroad if a medical emergency occurs. When the unexpected happens, Allianz will be there to help when travellers need it most.”

To read the Vacation Confidence Study, click here.

Source: Travelweek