Canadians are rethinking their summer plans as cost-of-living pressures mount, with over one in three (35 per cent) planning to spend less this season. According to a new TD survey, 44 per cent of respondents cite rising fuel costs as a primary reason for cutting back on travel.
Key Factors Behind Reduced Spending
The survey, which polled 1,500 Canadian adults between April 17 and April 27, reveals that 40 per cent of those scaling back point to higher transportation costs, while 62 per cent are redirecting funds toward everyday essentials like groceries, fuel, and housing. Canadians are adapting through strategies such as redeeming loyalty points (66 per cent) and opting for lower-cost alternatives like second-hand purchases or DIY projects (36 per cent).
Travel Trends and Economic Pressures
Rising fuel and airfare costs are shaping travel choices for 44 per cent of Canadians, and 61 per cent of those still planning trips are actively cutting travel costs. This trend aligns with broader economic pressures, including fuel surcharges linked to the conflict in Iran, which have increased costs for trucking and delivery companies, ultimately raising consumer prices. Statistics Canada data shows that trips abroad by Canadians fell by 24.4 per cent in the third quarter of 2025 compared to the same period in 2024.
Gen Z Bucks the Trend
Despite overall cutbacks, Gen Z Canadians stand out: nearly one in four (24 per cent) plan to spend more on travel this summer. This generation is also more likely to invest in experiences driven by fear of missing out (FOMO), with 30 per cent planning to spend on such activities, 29 per cent on trendy dining, and 28 per cent on shareable, photo-worthy events. Social pressure plays a significant role, influencing 32 per cent of Gen Z respondents—more than double the national average of 14 per cent.
Support for Local and Domestic Travel
Support for homegrown businesses remains strong, with 79 per cent of Canadians planning to support local or Canadian businesses this summer. Among those traveling, 76 per cent intend to stay within Canada, including 55 per cent exploring their own province and 41 per cent traveling elsewhere domestically. This follows a record year for Canadian domestic travel on Airbnb in 2025, which generated nearly $10.9 billion in economic activity.
