After two years of restricted holiday travel, Canadians are ready to get back on the road and into the skies to spend the holidays with their loved ones, but will inflation get in the way of their travels? NerdWallet Canada has just released its first holiday travel report which offers insight into Canadian’s sentiment about inflation’s impact on travel cost, as well as how they plan to pay for holiday expenses and the actions they’re taking to save money. The survey was conducted online by The Harris Poll of more than 1,000 Canadian adults with 455 (37%), referred to as holiday travellers, planning to travel this holiday season.
Key findings include:
- Inflation concerns: Nearly a third of 2022 holiday travellers (31%) are concerned about how much more it will cost for holiday travel this year due to inflation.
- Gifts vs. Travel: Twenty four per cent of holiday travellers plan to spend less on holiday gifts to save money for 2022 holiday travel expenses.
- How to pay: Nearly 2 in 5 Canadians (37%) plan to spend money on flights or hotel stays this upcoming holiday season; among them three quarters (75%) plan to put some or all of those travel expenses on a credit card.
Of the 2022 Canadian holiday travellers, 91% are taking action to save money on travel-related expenses this year. And some are willing to sacrifice comfort to cut costs. The most popular money-saving moves include choosing a flight based on price instead of convenience (40%), choosing a hotel/motel based on price instead of amenities (33%) and using credit card points/miles to cover expenses (33%.)
An overlooked, but great way Canadians can save is by saving in advance. Of those Canadians who’ve taken trips during the holidays, 1 in 4 (25%) do not save for holiday travel in advance at all. “Considering how costly holiday travel is expected to be this year, and how weak the loonie currently is, Canadian travellers would likely benefit from saving a little longer for their next trip,” says Clay Jarvis, personal finance expert at NerdWallet Canada.
To learn more about Canadian’s spending, saving and sentiments around holiday travel, you can check out the full holiday report here. As well you’ll find tips from NerdWallet Canada financial expert Shannon Terrell on how Canadians can cut costs, offset expenses, and reduce anxiety as they prepare for holiday travel.