BMO Survey: Summer Travel Spending Heats Up Despite Economic Concerns

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 Canadians (77%) 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. 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.”

– Anthony (Tony) Tintinalli
Head, Specialized Sales, BMO

“Canadian consumer confidence remains low but is improving. 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.”

– Sal Guatieri
Senior Economist, BMO

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.

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.
• 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.