Survey Finds Canadians Cooling on Summer Travel Spend

Sky-high fuel prices are negatively impacting Canadian travel plans this summer, according to a new TD survey.

Amid crude oil supply constraints, 44% of Canadians polled say fuel and aviation costs are affecting their summer travel decisions. Among those planning to travel, 61% say they are actively reducing travel costs.

The results of the survey led TD to declare that the summer’s top trend is saving, not splurging.

And it’s not just fuel: ongoing cost-of-living pressures for groceries and housing continue to shape household budgets and travel plans.

Key findings from the survey:

• 35% of Canadians plan to spend less this summer.
• 44% say higher fuel costs are influencing travel decisions.
• 24% of Gen Z Canadians – the highest among all generations – plan to increase their summer spending, driven largely by social pressure.
• 79% of Canadians plan to support local or Canadian businesses, with 48% saying it’s a stronger priority than last summer.

How Canadians are Adjusting 

The survey highlights how persistent cost pressures are pushing Canadians to make more deliberate financial trade-offs. Among those cutting back this summer, 40% cite higher transportation costs as a key factor, while 62% are redirecting spending towards everyday needs, such as groceries, fuel and housing.

“Summer comes with a lot of expectations and spending can add up quickly,” said Sumaiya Bhula, Senior Manager, Saving and Investing Journey at TD. “Simple steps like setting a realistic budget, tracking expenses and prioritizing what matters most can help Canadians stay in control while still enjoying the season.”

The survey also reveals a troubling attitude towards travel insurance:

• 46% of Canadian travellers don’t intend to purchase travel insurance this summer.
• 29% say they can only cover up to $300 in emergency travel costs without insurance.

“When travel budgets are already stretched, skipping travel insurance might feel like an easy place to save, but disruptions like a trip cancellation or unexpected medical emergency can quickly become costly,” said Patricia Foley, Associate Vice President, Life, Health & Credit Protection at TD. “Having the right travel insurance coverage could help protect your finances and your trip, allowing you to travel with greater confidence.”

Buy Canadian sentiment remains strong

As Canadians shift their summer travel plans, findings indicate that many are becoming more intentional with their vacation destinations and buying habits:

• 76% of Canadians planning to travel intend to stay within Canada, with 55% exploring their own province and 41% travelling elsewhere domestically.
• 79% plan to support local or Canadian businesses this summer. 
• 48% say their desire to support local businesses is stronger than last year. 
• Canadians are also supporting local by buying Canadian‑made products (48%), dining locally (41%) and shopping at independent retailers (32%).

“Local businesses are the heartbeat of our communities and it’s encouraging to see Canadians choosing to explore their own backyards,” said Julia Kelly, Vice President, Small Business Banking at TD.

“Shifting even a portion of summer spending to local businesses helps sustain communities, while also creating meaningful experiences close to home and supporting the entrepreneurs who drive our local economies.”