Can Canadians afford vacations?

As April is coming to an end and vacation is getting closer, research agencies continue to study the relations between the national economy and the families' economy, so it's a good time to examine Canadians' chances to go on vacation.

Ipsos' new survey conducted in late March involved more than 1,000 people. The questions had to do with the possibility/need/wish to go on vacation this summer. Credit ratings, inflation, wage levels, and the Bank of Canada's unchanged key rate were also taken into account.

Nevertheless, even with interest rates leveling off and inflation easing, the uncertain economic situation is still putting pressure on the budgets of Canadians hoping to plan a vacation this summer. The Ipsos survey shows that six in ten (62%) are scaling back their vacation plans due to inflation, and one quarter (24%) say there is no way they can afford a summer vacation.

Seven in ten (71%) say they really need a vacation – which is higher among households with kids (83% vs. 68% for households without kids). However, only six in ten (58%) think it’s likely they will be able to go on one (25% very, 33% somewhat) leaving a gap between desire/need and intent. Among those who say they really need a vacation, a third (32%) say it’s unlikely they’ll be able to take one.

For a quarter of Canadians (24%), summer vacation is not possible at all. They believe there is no scenario when "a vacation would be affordable for them." This proportion is significantly higher among those earning less than CAD 40,000 per year.

Among those who say they cannot afford a vacation, 8% are still convinced that they are likely to take a trip this summer, apparently putting themselves in a difficult financial position.