Canadians planning summer vacations despite financial worries

What’s more important — savings or summer travel plans?

Despite worries about the economy and cost of living, Canadians seem to be making the choice to head out on summer vacation, and many are making sacrifices in other areas to make memories and meaningful experiences.

A survey from BMO finds more than three-quarters of Canadians plan on travelling this summer, with a majority of those planning to spend as much or even more on their vacations than they did in 2024.

The average budget, according to the BMO Real Financial Progress Index, is $3,825 for flights, hotels, accommodations, rentals, gas, and food.

However, many of those vacations may look a little different than in years past, with almost 60 per cent opting to travel within Canada to save money, and more than half saying they will otherwise alter plans because of rising costs and inflation.

“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.”

Almost half of those asked say they have reduced their spending throughout the year to afford their summer vacation plans.

Nearly a third admit to compromising their long-term savings to afford travel plans.