More than one-third of Canadians (35 percent) plan to reduce their summer spending, primarily due to rising fuel costs, according to a recent TD survey of 1,500 adults conducted between April 17 and April 27. Specifically, 44 percent of respondents cited fuel expenses as a primary factor in their decision to cut back on travel. The survey revealed that 40 percent of those scaling back attribute their decision to higher transportation costs, while 62 percent are reallocating funds to essential expenses like groceries and housing. Canadians are adapting by utilizing loyalty points (66 percent) and opting for more affordable travel options. Interestingly, Gen Z Canadians are bucking this trend, with 24 percent planning to increase their spending on travel, motivated by social pressures. Overall, 79 percent of respondents expressed a desire to support local businesses, with a majority intending to travel domestically this summer.
Why It Matters
The findings highlight a growing trend of financial caution among Canadians amid ongoing cost pressures, primarily driven by rising fuel prices linked to geopolitical conflicts. The shift in consumer behavior reflects broader economic challenges, as Statistics Canada reported a 24.4 percent decline in international travel in late 2025 compared to the previous year. As Canadians increasingly seek affordable options and prioritize local experiences, the domestic travel sector may see continued growth, building on a record $10.9 billion in economic activity generated in 2025. Understanding these spending patterns is crucial for businesses and policymakers aiming to navigate the evolving economic landscape.
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