Canadians trade travel splurges for smarter summer adventures: survey

Carefree spending and oversized vacation budgets appear to be giving way to more practical decision-making, as Canadians navigate persistent cost-of-living pressures and rising transportation expenses.

According to a new TD survey, released Tuesday (May 26), travellers are becoming more selective, value-conscious, and intentional about how (and where) they spend their money.

For many Canadians, summer spending is no longer driven by impulse. According to the survey’s findings, 35 per cent of Canadians plan to reduce their summer spending this year, reflecting a broader shift toward financial caution.

Transportation costs are playing a major role, with 40 per cent of those cutting back citing rising travel expenses as a key reason.

Meanwhile, 62 per cent are redirecting money toward essentials such as groceries, housing, and fuel.

Instead of abandoning summer plans altogether, many are finding creative alternatives.

Travellers are increasingly redeeming loyalty rewards and points programs, while others are choosing lower-cost options such as second-hand purchases, do-it-yourself experiences, and shorter getaways.

Rising fuel prices reshapes decisions

One of the strongest trends influencing travel this year is the impact of fuel costs.

Nearly half of Canadians (44 per cent) say higher fuel and aviation prices are affecting their summer travel decisions, while 61 per cent of those planning trips are actively looking for ways to reduce travel costs, TD's survey reports. 

Rather than long-distance or international travel, many are turning toward shorter trips, domestic travel, off-peak schedules, lower-cost accommodations and day trips and regional escapes

"Stay local" travel grows

Domestic travel and local spending are emerging as defining trends of summer 2026.

More than three-quarters (76 per cent) of Canadians planning to travel intend to stay within the country, with many choosing to explore their own province or nearby regions.

This shift is extending beyond destinations and into spending habits: 79 per cent plan to support local or Canadian businesses while 48 per cent say supporting local is an even stronger priority than last year

Consumers are increasingly choosing Canadian-made products, independent retailers, and local restaurants, the survey says,

Gen Z breaks from the trend

While many Canadians are tightening budgets, younger consumers are approaching summer differently.

Nearly one in four Gen Z Canadians (24 per cent) plan to increase spending this summer, making them the most likely generation to spend more.

Social influence appears to be a major driver. Approximately 32 per cent say social pressure impacts their spending decisions—more than double the national average.

Popular spending priorities among Gen Z include experience-driven activities, trendy restaurants, social-media-worthy outings, travel experiences, concerts, festivals, and sporting events.

Yet even among younger travellers, boundaries are emerging.

Many are becoming more selective about expensive commitments such as weddings and social events, suggesting a balancing act between experience-seeking and financial responsibility, the survey says.

Travel insurance = a bigger conversation

As travellers work to cut costs, some are considering skipping travel insurance, the survey implies.

The survey reveals a gap in financial preparedness: 46 per cent of Canadian travellers don't intend to purchase travel insurance this summer while 29 per cent 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 and credit protection at TD, in a statement.  

"Having the right travel insurance coverage could help protect your finances and your trip, allowing you to travel with greater confidence."

Intentional over excessive

If one trend defines travel in 2026, it's intentionality, the survey says.

Canadians are still prioritizing experiences, but they're increasingly asking tougher questions: Is this trip worth it? Does it fit the budget? Is there a closer or more affordable option?

"Summer comes with a lot of expectations and spending can add up quickly," said Sumaiya Bhula, senior manager, saving and investing Journey at TD, in a statement. "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 TD survey, conducted using the Leger Opinion panel, ran from April 17-27, 2026, with a nationally representative sample of 1,500 Canadian adults.

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