Warm nights, slow mornings, sleeveless afternoons and sipping cold drinks by a pool — No matter how old we get, summer vacations will always have nostalgic allure.
Nothing quite tastes like a s’more roasted over camp fire in the woods.
From trips overseas, to a family cabin or staycations with a tent set up in the backyard, summer vacations are an integral part of Canadian culture.
However, is this custom under threat from the complexities of our current economy? Read on to find out.
Slowing down or speeding up?
Amazingly, the staggering cost of living, inflated food prices and tariff stress has not detered Canadians from their summer plans.
It almost as if those factors have had the opposite effect with summer travel heating up!
Everyone needs a break, especially considering the social, political and economic pressure we have endured since the start of the year. Ironically maybe, this is what is driving the desire to “escape” upwards.
Keeping it Canadian
Canadians plan to spend an average of $3,825 on summer trips, according to a special report from BMO’s Real Financial Progress Index.
Nearly four-in-five (77%) Canadians plan on travelling within that budget this summer, which includes the cost of flights, hotels and accommodations, rentals, gas and food.
It’s important to note that 59% are choosing to travel within Canada to save money, and likely give back the Canadian economy. This could also intersect with the boycott against US travel and tourism in defiance of the Trump administration and trade war.
62% plan on spending the same amount or more on vacations and travel this summer as they did in 2024.
Compromise and cancellations
At the same time, more than 55% of BMO’s survey respondents changed their vacation plans due to rising living costs and inflation.
46% reduced their spending across the year to fund their summer vacation plans.
Unfortunately, nearly 32% are compromising their long-term savings efforts to afford their trips.
“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,” —Anthony Tintinalli, BMO Head of Specialized Sales.
“Canadian consumer confidence remains low but is improving,” stated 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,”
Wedding bells are ringing
34% of Canadians plan on spending equal amounts or more on weddings for friends, family and loved ones this summer compared to summer 2024.
Note that the average Canadian wedding costs approximately $30,000 to $32,000. Of course, this can vary drastically based on location, guest count, venue and decor, etc.
Camps and childcare
61% of survey respondents don’t plan to spend on summer camps and childcare this summer.
At the same time, 29% plan to invest the same amount or more on summer camps and childcare compared to 2024.
The cost of summer camps depend on the length, location and whether or not they’re day-run or overnight. On average traditional overnight camps can cost $300 to $1,000 per week, and day camps run between $35 to $500 for the same period.
Home improvement
A lot of Canadians try to take advantage of the warmer summer months to tackle home projects. 42% plan to spend the same amount or more on home renovations while 44% don’t.
Summer splurges
Nearly a third of Canadian survey respondents plan on spending the same amount or more on a major purchase. This includes a house, a car, a boat, etc.
57% do not plan on making a large purchase this summer — understandable considering the increased costs of everyday living expenses.
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What are your summer plans? Share them in the comments!
