56% would like to travel but can’t afford to, survey says
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Many Canadians are choosing to stay home for the holidays because budget constraints are keeping them from travelling this winter, according to a new survey by Simplii Financial.
Almost 80 per cent of the 1,500 Canadians interviewed in November said that travelling has become less affordable in the past five years. As a result, 68 per cent are making compromises when it comes to holiday travel.
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The majority of those travelling are taking shorter trips and staying within Canada, with 52 per cent opting to stay in their home province.
They are also saving elsewhere, with 23 per cent choosing cheaper accommodations, 18 per cent flying during off-peak season to reduce airfare costs and 16 per cent using discount airlines.
Still, more than half are forgoing travel altogether, with 56 per cent saying they would like to travel but cannot afford to.
“Canadians are feeling cost pressures in all areas of life and they’re asking themselves whether holiday travel fits into their budgets,” Atanaska Novakova, executive vice-president and head of Simplii Financial, said in a release. “As a result, many are making trade-offs to manage costs or are foregoing travel entirely in the near term.”
Recent immigrants are more likely to face barriers when travelling this holiday season. A separate poll by JustFly Inc. (doing business as FlightHub), which surveyed 2,005 Canadians last month, said 91 per cent of them won’t get enough time with their family this winter.
Forty per cent of them cited a lack of vacation days for not being able to travel, while 36 per cent blamed the high cost of travel and 32 per cent chalked it up to financial obligations.
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Newer immigrants cited these stressors far more frequently than those born in Canada. For example, only 19 per cent of those born in Canada mentioned a lack of time off as a barrier to visiting family.
Recent immigrants were also more likely to report difficulty taking time off than Canadians and feeling pressured by their employers to work over the holidays.
“This survey highlights the unique challenges immigrants face during the holidays, from balancing work commitments to finding time and resources to spend meaningful moments with loved ones,” Henri Chelhot, chief executive of FlightHub, said in a release.
Canadians’ travel intentions are expected to continue softening in 2025. Sixty per cent are planning to travel next year, down 10 percentage points from 2024, according to a study by Allianz Global Assistance Canada, which interviewed 2,001 Canadians in November.
Among those who are not planning to travel, 60 per cent said financial considerations remain the main barrier.
The longing to make up for lost time following the COVID-19 pandemic also appears to be waning, with only 29 per cent expressing a desire for “revenge travel” this year, down 10 percentage points from 2023 and 21 percentage points from 2022.
Despite the challenges, Canadians’ desire to travel remains strong, with 66 per cent saying that an annual vacation is important to them.
“This year’s Vacation Confidence Index Study highlights how economic pressures are influencing Canadians’ travel decisions,” Dan Keon, vice-president of marketing and insights at Allianz, said in a release. “While the aggressive post-pandemic travel rebound appears to be levelling out, it’s great to see that the desire to travel remains strong.”
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Today’s Posthaste was written by Noella Ovid, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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