Canadians still prioritize spending on travel amid high inflation

A new study by online travel company FlightHub Group Inc. says travel is becoming an important expense for Canadians despite high inflation as many of them prioritize vacations over essential spending.

Many Canadians still prioritize spending on travel amid high inflation. (Illustration photo)

Specifically, a survey of 2,000 Canadians found that nearly half (about 48%) have cut their budget to afford a trip.

“Even in challenging economic times, the desire to explore and connect with the world remains a fundamental aspect of the human spirit,” FlightHub CEO Chris Dave said in a press release.

Of those who have flown in the past two years, 57% have cut back on non-essential expenses to afford a trip this year. That number jumps to 77% in New Brunswick, the highest of any Canadian province.

Many of those who cut back on spending to afford a trip even cut back on essential expenses, with 41% cutting back on everyday spending. Those who still can’t afford to travel are turning to other financial means, with 28% using credit cards to fund their trips.

Younger Canadians are also making compromises and concessions to make their travel dreams come true. Of them, 57% have cut back on their trips to restaurants, theaters and concerts. Meanwhile, 69% of Gen Zers say they are willing to work overtime to travel.

A separate study by SAP Concur, a company that provides business travel and expense management services, found that nearly half (48%) feel travel is important to keep up with the latest trends, technologies and advancements, as well as establishing relationships with new customers (47%).

However, 96% recognize that there are threats to business travel, with inflation (44%) being one of the biggest issues. The survey found that economic uncertainty has impacted travel for 91% of Canadian business people, causing them to reduce their travel budget by 47%.

Source: https://baoquocte.vn/nguoi-canada-van-uu-tien-chi-tieu-cho-du-lich-trong-boi-canh-lam-phat-cao-238096.html