A special report from the BMO Real Financial Progress Index reveals concerns about the cost of living and economic uncertainty have not cooled Canadians’ summer travel plans, with 62% planning on spending the same amount or more on vacations and travel this summer compared to 2024. Nearly four-in-five (77%) Canadians plan on travelling this summer, with an average budget of $3,825, which includes the cost of flights, hotels and accommodations, rentals, gas and food.
The survey examined how Canadians are preparing for their summer vacation plans and found:
- 59% are opting to travel within Canada to save money.
- More than half (55%) have altered their vacation plans due to rising costs and inflation.
- 46% have reduced their spending throughout the year to afford their summer vacation plans.
- Nearly a third (32%) admit to compromising their long-term savings to afford travel plans.
“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 Anthony (Tony) Tintinalli, Head, Specialized Sales, BMO. “At BMO, financial planning means enjoying today while preparing for tomorrow. Whether it’s a summer getaway or a special event, we encourage Canadians to work with an advisor and take advantage of convenient planning tools to help you stay on track towards your goals – without missing out on the moments that matter most.”
“Canadian consumer confidence remains low but is improving,” said Sal Guatieri, Senior Economist, BMO. “The U.S. 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.”
The BMO Real Financial Progress Index also explores Canadians’ summer spending plans and forecasts:
- Warming Up for Wedding Season: 34% plan on spending the same amount or more on weddings for family and friends this summer compared to last year. Over half (54%) do not plan on spending on weddings for family and friends this summer.
- Storm of Celebrations and Steady Spending: Two in five (39%) plan on spending the same amount or more on special events, including graduations and showers this summer than they did in 2024. Less than half (48%) do not have plans to spend on special events this summer.
- Family Activity Budgets Feel the Heat: 29% will spend the same amount or more on summer camps and childcare compared to 2024. 61% have no plans to spend on summer camps and childcare this year.
- Sawdust and Sunshine: 42% will spend the same amount or more on home renovations. 44% do not have home renovation plans during the summer.
- Sunny With a Chance of Splurging: Nearly a third (30%) plan on spending the same amount or more for a large purchase including a home, a car, a boat, etc. 57% do not plan on making a large purchase this summer.
Investing in Moments with AIR MILES
With over three quarters of Canadians reporting increased concerns about the cost of living (78%) and inflation (76%) since the beginning of the year, the survey found many are taking advantage of loyalty programs such as AIR MILES to help with daily expenses and invest in moments.
More than half (52%) plan on using points and rewards earned from loyalty programs on groceries, followed by vacations and trips (25%), entertainment including event tickets, dining, etc. (18%), monthly bills (16%) and weddings and special events with family and friends (5% each). More than three-in-five (61%) Canadians say they would prefer investing in experiences over material things.
“While some Canadians may be adjusting how they spend this summer, the desire to travel and enjoy meaningful experiences are still on the horizon for many,” said Jason Beales, Chief Strategy and Commercial Officer, AIR MILES Reward Program. “With more than half of Canadians choosing experiences over material things, AIR MILES is helping collectors stretch their dollars further – whether that means saving on everyday essentials or turning Miles into unforgettable memories. Our goal is to make it easier for Canadians get more value from their spending and feel good about their financial progress.”
BMO Helps Canadians Keep Their Budgets Cool for the Summer
BMO offers the following tips to help Canadians create and maintain a personalized budget and make real financial progress:
- Build a budget and regularly review spending and financial statements at least once a month. A separate budget should be created to help save for more expensive plans, such as a vacation, travel, special events or large purchases.
- Consider redeeming points from rewards programs or loyalty programs such as AIR MILES to help purchase gifts and/or finance travel costs.
- Assess recurring “hidden” expenses, such as forgotten subscriptions, and cancel those no longer needed or in use.
- Seek advice from a professional financial advisor or planner to help develop a personalized financial plan according to financial goals, circumstances and obligations, and time horizons.
- Set up a savings goal and recurring savings transfers into an account – no matter the amount – which will provide a sense of progress and motivation to achieve their savings goals.