Canadians shortchange savings goals to take summer vacation, says BMO survey
It appears ongoing economic uncertainty and the high cost of living have not put a damper on Canadians’ summer holiday plans this year, with nearly four in five saying they still intend to travel, according to a report by Bank of Montreal .
The survey said 62 per cent of Canadians are planning to spend the same amount of money or more on vacations this summer compared to last year. The average budget is $3,825, which includes the cost of flights, hotels and accommodations, rentals, gas and food.
“Despite economic pressures, Canadians are still planning on making the most of their summer through meaningful experiences such as travel and celebrations with loved ones,” said BMO’s head of specialized sales Anthony Tintinalli.
To save money, 59 per cent of respondents said they are opting to travel within the country.
This is in line with data from Statistics Canada that showed a 0.8 per cent increase in domestic tourism spending in the first quarter of 2025 as Canadians pulled back from travel to the United States.
The BMO survey said more than three quarters of Canadians reported increased concerns about the cost of living (78 per cent) and inflation (76 per cent) since the beginning of the year.
BMO senior economist Sal Guatieri said the U.S. trade war and tariffs remain sources of anxiety for many.
“Canadian consumer confidence remains low but is improving,” Guatieri said, adding that recent progress towards de-escalation in trade talks, together with a rebound in equity markets, lifted consumer spirits in April and May.
The improved mood likely explains the increased appetite for travel this summer, he said.
With that in mind, more than half or 55 per cent of the respondents said they had altered their vacation plans due to rising costs and inflation, while 46 per cent said they had reduced their spending throughout the year to afford their summer vacation plans.
The survey also said that 32 per cent admit to compromising their long-term savings to afford travel plans.
The poll was conducted by Ipsos Canada between March 3 and 26 and again from April 17 to 20 , surveying a sample of 2,500 adults in Canada.
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