Gen Z is the only generation planning to spend more, driven largely by social pressure
Nearly one in three Canadians plans to spend less this summer and fuel costs, not just inflation, are driving the retreat.
A new TD survey found that 35 percent of Canadians are cutting back this season, with 40 percent of those citing higher transportation costs as a key factor and 62 percent redirecting spending toward essentials such as groceries, fuel, and housing.
Forty-four percent said fuel and aviation costs are directly affecting their travel decisions.
Among Canadians who still plan to travel, 61 percent are actively reducing costs and 76 percent intend to stay within Canada, with 55 percent staying within their own province.
Forty-six percent do not plan to purchase travel insurance, and 29 percent said they could cover no more than $300 in emergency travel expenses without it.
Patricia Foley, associate vice president of life, health and credit protection at TD, warned that skipping travel insurance "might feel like an easy place to save" but that cancellations or medical emergencies can quickly become costly when budgets are already stretched.
Buy-Canadian sentiment is strengthening alongside the domestic travel trend.
Seventy-nine percent of respondents said they plan to support local or Canadian businesses this summer, with 48 percent describing that intent as stronger than last year.
Gen Z stands apart from the broader pullback.
Twenty-four percent of Gen Z Canadians plan to increase spending this summer, the highest share of any generation, with 32 percent saying social pressure is a factor, more than double the national average of 14 percent.
Their top categories include FOMO-driven experiences (30 percent), dining at trendy restaurants (29 percent), and shareable activities (28 percent).
Yet the same cohort is drawing limits elsewhere: 64 percent said they have declined or are being more selective about summer wedding invitations, compared to 48 percent of the general population.
Jeet Dhillon, senior portfolio manager at TD Wealth, said knowing what you value and what fits your budget makes it easier to enjoy summer "without letting impulse or pressure derail your financial plans."
