Canadians Spending Money Close to Home This Summer
Value of dollar impacting summer travel decisions for the majority of Canadians
TORONTO, ON – May 10, 2016
With the first long weekend of the season coming up, a recent survey by Tangerine found that home may be the place to be this summer. The survey found that the vast majority of Canadians (81 per cent) plan to spend the long weekend at home this year, and two-thirds (69 per cent) say the value of the Canadian dollar is impacting their travel plans for the rest of the summer.
For the remainder of the summer months, a quarter of Canadians surveyed said they won’t be getting away at all, and 58 per cent said they’ll travel within Canada or their home province. Only nine per cent will travel to the US, and another eight per cent will travel internationally. More than one quarter (27 per cent) of Canadians said they changed their plans and no longer plan to travel to the US this summer because of the Canadian dollar.
While it seems that many people are cutting back on US travel plans this year, those with vacation plans are not afraid to spend money. Of those planning a trip within Canada this summer, 55 per cent will spend more than $1,000, and of those planning a trip to the US, 74 per cent will spend more than $1,000. Furthermore, 59 per cent admitted that they typically overspend what they budget for vacation, and many (29 per cent) use credit and debt to fund their vacation and pay it back later.
"Vacations can be a slippery slope when it comes to spending money, since you’re out of your regular routine and already opening your wallet for many expenses," says Silvio Stroescu, Vice President of Deposits and Investments at Tangerine. "Having access to an interactive banking app with alerts can be helpful for money management while away, but, of course, deferring a vacation until you can afford it is the best option and appears to be what many Canadians are doing this year."
When taking a vacation in their own country, Canadians are most likely to prefer an extended cottage trip to the lake and a good book (44%), followed by a busy-city adventure (23%). If they could take a vacation anywhere in Canada, one-third (33%) of Canadians would choose the east coast/Atlantic Canada as their destination of choice, followed by British Columbia (25%), Ontario (16%), and Quebec (16%).
The millennial compromise
When asked about splurges and compromises while on summer vacations, the millennial age group was the most likely to splurge, admitting they’re likely to overspend on food and beverage (63%), outdoor activities (43%), shopping/souvenirs (35%), and tickets for entertainment (25%) when travelling. But some millennials may be splurging in some areas because they’re saving on other expenses. Millennials were the most willing to share a bed or hotel room (35%), and take multiple connector flights (31%). Meanwhile, 18 per cent said they’ll travel on their birthday to take advantage of birthday freebies, or during non-peak times (70%).
"Whether staying with friends at an Airbnb® or hostel, or just hitting the road in your car, there are many ways to ensure you stay within your budget while you travel," says Cait Flanders, author of the personal finance blog, Blonde on a Budget®. "My favourite way to save on travel is taking a 'staycation' and exploring areas close to home, which can be an eye-opening experience and cost much less. Canada is one of the most beautiful places in the world and we should all spend more time exploring it."
From April 20 to 21, 2016, an online survey was conducted among 1,515 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error — which measures sampling variability — is +/- 2.5%, 19 times out of 20. The results have been statistically weighted according to education, age, gender and region (and in Quebec, language) Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.
Tangerine is a direct bank that delivers simplified everyday banking to Canadians. With nearly 2 million Clients and close to $38 billion in total assets, we are Canada's leading direct bank. Tangerine offers banking that is flexible and accessible, products and services that are innovative, fair fees, and award-winning Client service. From no-fee daily chequing and high-interest savings accounts, a Credit Card, GICs, RSPs, TFSAs, mortgages and mutual funds, Tangerine has the everyday banking products Canadians need. With over 1,000 employees in Canada, our presence extends beyond our website and Mobile Banking app to our Café locations, Pop-Up locations and 24/7 Contact Centres. Tangerine was launched as ING DIRECT Canada in 1997. In 2012 it was acquired by Scotiabank, and operates independently as a wholly-owned subsidiary.
More information is available at tangerine.ca
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