Home for the holidays: Budget pressures impacting Canadians' travel plans

Two thirds of residents making compromises on holiday travel

TORONTO, Dec. 10, 2024 /CNW/ - A recent survey by Ipsos on behalf of Simplii Financial reveals that financial constraints are keeping many Canadians at home this holiday season. Almost eighty percent of respondents (79 per cent) feel that travel has become less affordable over the past five years.

"Canadians are feeling cost pressures in all areas of life and they're asking themselves whether holiday travel fits into their budgets," says Atanaska Novakova Executive Vice-President, and Head, Simplii Financial. "As a result, many are making trade-offs to manage costs, or are foregoing travel entirely in the near term."

Two thirds of Canadians (68 per cent) say they are making compromises when it comes to holiday travel

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In total, just over two thirds of Canadians (68 per cent) say they are making compromises when it comes to holiday travel. More than half (56 per cent) say they'd like to travel but it's unaffordable.

Of those who are planning to travel, the majority are taking shorter trips and staying within Canada.

• 52 per cent say they are opting to stay within their home province.
• 37 per cent of those travelling will be heading to international destinations, with the United States (42 per cent), and Mexico and the Caribbean (26 per cent) as the most popular vacation spots.
• Asked how they plan to reduce travel costs this year, Canadians say they will be choosing cheaper accommodations (23 per cent), and reducing airfare costs by flying off-peak (18 per cent) or using discount airlines (16 per cent).

Some tips from Simplii Financial on how people can manage the cost of holiday travel include:

• Booking flights as early as possible – While many travel plans are already firmed up for this year, it's a good time to start thinking about next year. Not only are flights generally cheaper the earlier you get them, but opting for cancellable tickets may allow you to re-book later if you find a cheaper fare.
• Getting cash back on food and drinks – If you know you're going to be splashing out, a cash-back credit card like the Simplii Cash Back Visa might be your best choice, since it earns up to 4 per cent on eligible restaurant, bar, coffee shop, food delivery, and even catering purchases.
• Travelling off-peak – Convenience often comes at a cost, but you don't need to take a red-eye to get a good deal. In many cases flying on weekdays, especially around mid-week, can save money and help you avoid heavier airport traffic around the weekend.

Disclaimer

These are some of the findings of an Ipsos poll conducted between November 8 and 15, on behalf of Simplii Financial. For this survey, a sample of 1,500 Canadians aged 18+ were interviewed online. Sample was sourced from the Ipsos panel. Weighting was employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±3.1 percentage points, 19 times out of 20, had all Canadians been polled. The credibility interval will be wider among subsets of the population.

About Simplii

Simplii Financial provides direct banking services to approximately 2 million Canadians with 24/7 access to online, mobile, and telephone banking with no monthly fees. Simplii clients can also access one of the largest national ATM networks through CIBC. For more information about Simplii Financial, please visit www.simplii.com or by following on X @SimpliiFin, Instagram @SimpliiFin, or on Facebook.

SOURCE Simplii Financial

Benjamin Wylie, 647-212-2836 / [email protected]