May 2: Is Travel Making A Comeback?
May 2, 2024
We all recall the closed borders and other travel restrictions that plagued us during the COVID-19 pandemic years. But, with (hopefully) the worst of that now in the rear-view mirror, it appears that travel may be making a comeback.
According to a recent media release from Allianz Global Assistance Canada, its Winter Vacation Confidence Index Survey showed a pretty sharp uptick for the season just ended.
A whopping 43 per cent of those surveyed planned to take a vacation this winter, up from 32 per cent in 2021, the release notes.
“With travel volumes nipping at the heels of pre-pandemic levels, an overwhelming majority – 84 per cent – of travellers feel they desperately need a vacation this year,” states Dan Keon, Vice President, Marketing & Insights at Allianz Global Assistance Canada, in the release. “A major driver of this ongoing travel comeback is the continued desire for revenge travel, with half of Canadians intending to unapologetically make up for lost vacation time that was postponed due to the pandemic.”
Interestingly, the release notes, Canadians planned to spend some of their “pandemic savings” on a bigger vacation this past winter.
“The average anticipated winter vacation spend has increased by 20 per cent to $3,193 since 2021. Overall, Canadian households are projected to spend around $14.3 billion on vacations in the upcoming year, eclipsing the pre-pandemic high recorded in Allianz’s 2019 annual survey. While pent-up demand is driving up spending, financial worries may be tempering the increase as 57 per cent of travellers shared they will be scaling back vacation plans this year due to inflationary pressures,” the release notes.
Other Allianz findings – six in 10 Canadians plan a holiday, and 74 per cent of travellers (perhaps in light of the recent pandemic) think having travel insurance is important.
OK, so where have we been going this winter and spring?
According to the Orlando Sentinel, ocean cruises have bounced back after some very lean years.
More than 31.7 million people took a cruise last year, the newspaper reports.
“The pandemic shut down sailing from March 2020 with only a small number of ships coming back online 18 months later in summer 2021. Cruise lines didn’t return to full strength until partially through 2022, so it wasn’t until a full year of sailing in 2023 that the industry could get a real handle on just what the demand had grown to as people returned to vacation travel,” the Sentinel reports.
2023’s total surpassed the last pre-pandemic year of cruising by two million, the article adds.
Air travel is also zipping along nicely, reports the 100 Knots website.
“According to the latest report by the International Air Travel Association (IATA), global passenger demand witnessed a significant uptick in February 2024 compared to the same period last year. The data, which represents about 83 per cent of the world’s carriers, reveals a 21.5 per cent increase in passenger demand, indicating a strong resurgence in air travel,” the publication reports.
Overall, the increase in travel is very good news for the global economy, advises The Robb Report.
“The folks at the World Travel & Tourism Council (WTTC) estimate that the travel industry will reach a record $11.1 trillion in 2024, eclipsing the prior high of $10 trillion achieved in 2019. Furthermore, tourism is expected to become a $16 trillion industry within the next decade and will represent 11.4 per cent of the global GDP by 2034,” the publication notes.
The WTTC’s Julia Simpson is quoted in the article as saying “travel isn’t just back, travel is booming. We’re talking about a really, really strong sector.”
If you’re planning on doing a little travel when you retire, it’s probably a good idea to start putting away a few bucks today for future boarding passes. And if you don’t have a retirement plan at work, you don’t have to do all the heavy lifting of investing your savings all by your lonesome.
The Saskatchewan Pension Plan, open to every Canadian with registered retirement savings plan room, will invest your savings in a low-cost, professionally managed, pooled fund. At retirement your choices include a monthly annuity payment for life, or the flexible Variable Benefit. Check out SPP today!
Join the Wealthcare Revolution – follow SPP on Facebook!
Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.
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