Canadians are cutting back on winter vacation spending, but interest in travel insurance remains strong, suggesting that financial protection continues to feature in travel plans despite tighter household budgets.
A new survey from Allianz Global Assistance Canada found that 73% of Canadian travellers have already purchased or are likely to purchase travel insurance, even as 63% are reducing non-essential spending to afford their trips.
The findings point to a potential distinction between how much Canadians are willing to spend on vacations and their willingness to protect those expenses. Half of travellers said they are scaling back their plans rather than cancelling them altogether.
The Winter 2026 Global Travel Confidence Index found that 72% of Canadian travellers feel they desperately need a vacation, but only 41% of Canadians overall intend to travel this winter. Among those staying home, 66% cited a lack of funds or an unwillingness to spend money on travel, while 30% said travelling has become too expensive.
Those planning a getaway expect to spend an average of $2,592 per person, with considerable differences across generations. Generation Z travellers anticipate spending $1,790 on average, compared with $4,306 among Baby Boomers.
Despite these financial pressures, concerns about potential disruptions remain widespread. Travel delays or cancellations topped the list at 62%, followed by safety and security risks and geopolitical tensions, both at 61%. Illness and extreme weather were each cited by 55% of travellers, while 51% expressed concern about medical emergencies.
The findings are consistent with broader evidence that travel insurance remains a consideration for Canadian consumers. The 2026 Blue Cross Travel Study found that 86% of Canadian travellers have some form of travel insurance. Of those surveyed, 56% reported purchasing coverage directly, while 30% relied on workplace plans or credit cards.
The distinction highlights the different channels through which Canadians obtain coverage, although the Allianz and Blue Cross findings are not directly comparable because they measure different aspects of insurance purchasing behaviour.
It also raises questions about whether existing coverage matches travellers' concerns. The Autorité des marchés financiers notes that travel insurance benefits vary between policies, particularly for trip cancellations, medical conditions and travel advisories. Coverage obtained through credit cards or workplace benefits may also be subject to eligibility requirements and restrictions on trip duration.
"Canadians are telling us that travel matters to them, even when it requires making some difficult financial choices," said Kyle Sparkman, managing director of Allianz Partners Canada.
"When you've scaled back your plans or cut spending elsewhere to make a vacation possible, protecting that investment becomes even more important. Travel insurance is a smart way to protect those hard-earned plans from the unexpected and give Canadians greater confidence to enjoy the time away they've worked hard to prioritize."
While the Allianz findings indicate considerable interest in travel insurance, the 73% figure combines confirmed purchases with purchase intentions, so it does not establish whether actual policy sales have increased.
