BMO Survey: Summer Travel Spending Heats Up Despite Economic Concerns Français
59% agree they are opting to travel within Canada to save money.
TORONTO, July 3, 2025 /CNW/ - 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 (77%) Canadians 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," said Anthony (Tony) Tintinalli, Head, Specialized Sales, BMO. "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."
"Canadian consumer confidence remains low but is improving," said 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."
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.
Investing in Moments with AIR MILES
With over three quarters of Canadians reporting increased concerns about the cost of living (78%) and inflation (76%) since the beginning of the year, the survey found many are taking advantage of loyalty programs such as AIR MILES to help with daily expenses and invest in moments.
More than half (52%) plan on using points and rewards earned from loyalty programs on groceries, followed by vacations and trips (25%), entertainment including event tickets, dining, etc. (18%), monthly bills (16%) and weddings and special events with family and friends (5% each). More than three-in-five (61%) Canadians say they would prefer investing in experiences over material things.
"While some Canadians may be adjusting how they spend this summer, the desire to travel and enjoy meaningful experiences are still on the horizon for many," said Jason Beales, Chief Strategy and Commercial Officer, AIR MILES Reward Program. "With more than half of Canadians choosing experiences over material things, AIR MILES is helping collectors stretch their dollars further – whether that means saving on everyday essentials or turning Miles into unforgettable memories. Our goal is to make it easier for Canadians get more value from their spending and feel good about their financial progress."
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.
Consider redeeming points from rewards programs or loyalty programs such as AIR MILES to help purchase gifts and/or finance travel costs.
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.
Clients can build financial literacy, monitor financial plans, and reach financial goals through BMO's innovative digital tools and resources:
BMO SmartProgress: This tool helps customers learn more about important personal finance topics and build financial literacy anywhere and at any time. It is a free, online financial education platform featuring customized, interactive content, including videos and tools, on complex financial planning topics including budgeting and credit management, homeownership and investing.
BMO CreditView: Customers can quickly and easily check their credit scores and access new tools and advice to manage their credit profile online and on mobile.
BMO Insights: Customers get help saving more, monitoring spending and account values, and spotting unusual activity with 25 BMO Insights that provide customers free, quick, and personalized views of their daily spending to help them make informed decisions. Popular online insights include:
CashTrack: Using artificial intelligence, these insights monitor customers' cash flows and let them know if they will run out of money in the next seven days.
Spend Categorization: These insights notify customers when there has been a significant increase in a specific spending category or if a free trial has expired.
BMO Savings Amplifier Account: To help make saving easy and automatic, BMO's new Savings Amplifier Account offers no monthly fees, a competitive interest rate, and unlimited no-fee transfers to other BMO accounts. In addition, its digital Savings Goals feature enables customers to set, track, and manage their financial goals.
To learn more about how BMO can help clients make financial progress, visit www.bmo.com/main/personal.
To learn more about AIR MILES, visit www.airmiles.ca.
Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The index aims to spark dialogue that will help consumers reach their financial goals and to humanize a topic that causes anxiety for many – money.
The research detailed in this document was conducted by Ipsos in Canada from March 3 rd to 26 th, 2025. A sample of n=2,500 adults ages 18+ in Canada were collected. To account for recent changes in the economic situation, certain questions were asked again from April 17 th to 20 th, 2025 among a sample of n=2,001 adults ages 18+ in Canada. Quotas and weighting were used to ensure the composition of both samples reflects that of the Canadian population according to census parameters. The surveys have a credibility interval of +/- 2.7 per cent 19 times out of 20, of what the results would have been had all Canadian adults 18+ been surveyed.
About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of April 30, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.
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