Times are hard enough without losing out on a vacation or experience
Canadians are pushing ahead with their summer vacation plans, despite inflation and economic uncertainty.
According to the latest BMO Real Financial Progress Index, 77% of Canadians are planning to travel this summer with 62% brushing off financial pressure to spend the same or more on summer vacations compared to 2024, an average of $3,825 per trip.
But making stretched finances stretch a bit further means taking some proactive steps with 55% saying they have changed their plans due to rising costs and 46% having cut back on other spending throughout the year to afford their vacation.
"Canadian consumer confidence remains low but is improving," said Sal Guatieri, Senior Economist, BMO. "The US trade war remains a source of anxiety for many Canadian workers and households, but recent progress towards de-escalation, together with a rebound in equity markets, has lifted consumer spirits in April and May. The improved mood likely explains the increased appetite for travel this summer."
Some respondents are making harder choices with around a third admitting they’re dipping into long-term savings to afford time away.
Domestic travel is the top choice for 59% of Canadians looking to save, while others are turning to loyalty programs like Air Miles to offset costs. More than half (52%) are using rewards for groceries, with others targeting travel (25%), entertainment (18%), and even bills (16%).
Despite the squeeze, Canadians are prioritizing experiences.
About 34% will spend the same or more on weddings this year and 39% will do so on special events like showers and graduations. Even summer camps, home renovations, and big purchases like homes or cars are still on the table for some.
