Canadians Spending Money Closer to Home

PHOTO: Kejimkujick National Park. (Photo courtesy of Thinkstock)

Canadians are curtailing their travel plans according to a recent survey by Tangerine banking services. Of the people surveyed, 69 percent said the value of the Canadian dollar is impacting their travel plans for the summer season. More than a quarter (27 percent) said they changed their plans and no longer plan to travel to the U.S. this summer because of the Canadian dollar.

"Vacations can be a slippery slope when it comes to spending money. You are out of your regular routine and already opening your wallet for many expenses," said 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."

In fact, a quarter of Canadians said they won’t be travelling at all, 58 percent are planning to travel only within Canada or their home province, 9 percent are planning a U.S. getaway and only 8 percent plan to travel internationally.

More Survey Results

Travel Spending: While the intent to travel may be down, people who plan to travel seem optimistic about their plans. Some 55 per cent of people planning to travel domestically say they will spend more than $1,000. Among U.S.-bound travelers, 74 percent plan to spend more than $1,000. On the flip side, nearly a third (29 percent) say they’ll use credit or other debt to fund their vacation only to pay it back later.

Domestic Vacations: While travelling domestically, Canadians are most likely to take a cottage trip to the lake (44 per cent) or a city adventure (23 per cent). Preferred destinations are Atlantic Canada (33 percent), British Columbia (25 percent), Ontario (16 per cent) and Quebec (16 per cent).

Millennial Spending Habits: The survey indicated that millennials are most likely to splurge. Collectively, respondents admitted that they're likely to overspend on food and beverage (63 percent), outdoor activities (43 per cent), shopping/souvenirs (35 percent), and tickets for entertainment (25 percent) while traveling. But while millennials may splurge on some items, they’re more than willing to compromise in other areas. In order to save money, they are the most likely group to share a bed or hotel room (35 per cent) and take multiple connector flights (31 percent). Most (70 percent) said they are also willing to travel during non-peak times, while nearly one in five (18 percent) said they'll travel on their birthday to take advantage of freebies.

The survey was conducted online April 20-21, 2016, among 1,515 randomly selected Canadian adults who are Angus Reid Forum panelists. The survey was sponsored by Tangerinean independent, but wholly owned subsidiary of Scotiabank.

For more information and tips on saving money, visit www.tangerine.ca/forwardthinking.

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