Bank of Montreal Survey: Canadians Prioritize Travel Despite Economic Concerns This Summer
- 77% of Canadians plan to travel this summer, with 62% maintaining or increasing their budgets, according to BMO survey.
- BMO encourages Canadians to engage financial advisors to align travel plans with financial health amid economic concerns.
- BMO provides digital budgeting tools to support clients in managing finances and adapting to changing consumer behaviors.
Canadians Embrace Summer Travel Amid Economic Concerns, BMO Survey Reveals
A recent survey conducted by Bank of Montreal (BMO) highlights a notable trend among Canadians as they prepare for summer travel, despite ongoing economic challenges such as high living costs and inflation. The BMO Real Financial Progress Index reveals that 77% of Canadians are planning to travel this summer, with 62% indicating they will maintain or increase their spending compared to last year. The average budget for these vacations is set at $3,825, covering essential expenses like flights and accommodations. This willingness to spend suggests a resilience among consumers who prioritize experiences, even while grappling with financial worries.
BMO's Head of Specialized Sales, Anthony Tintinalli, emphasizes the importance of balancing enjoyment with prudent financial planning. He encourages Canadians to engage with financial advisors to align their travel aspirations with their overall financial health. This sentiment is echoed by BMO’s Senior Economist Sal Guatieri, who notes a gradual improvement in consumer confidence, which likely contributes to the increased interest in travel. Despite the lingering concerns about living costs—expressed by 78% of Canadians—the desire for memorable experiences appears to be driving spending decisions.
The survey also reveals a shift in consumer behavior, with over 60% of Canadians preferring to invest in experiences rather than material goods. BMO's Chief Strategy and Commercial Officer for AIR MILES, Jason Beales, highlights that loyalty programs are playing a significant role in this trend. Many Canadians are leveraging these programs to mitigate financial pressures, with 52% planning to use points for groceries and 25% for vacation expenses. To further support clients in managing their finances, BMO provides digital tools focused on budgeting and financial literacy, reinforcing its commitment to enhancing consumer dialogue around personal finance.
In addition to travel spending, the survey reflects a broader cultural shift as Canadians increasingly prioritize experiences over possessions. This transition suggests a potential long-term change in consumer behavior that financial institutions and businesses must consider. The BMO Real Financial Progress Index, which was launched in February 2021, aims to foster ongoing discussions about personal finance, with research conducted by Ipsos involving a diverse sample of 2,500 adults across Canada.
As the seventh largest bank in North America, BMO Financial Group is well-positioned to guide its clients through these financial conversations, offering insights and tools that align with the evolving priorities of Canadian consumers.
