Yahoo Finance Posthaste: Summertime blues — many Canadians shelving vacation plans because of inflation
Three-quarters of Canadians say they aren’t going on vacation this summer as inflation and other factors put a damper on their travel plans, says a new survey.
The study by financial product comparison site HelloSafe, which interviewed 984 respondents, found that inflation was one of the main reasons for shelving holiday plans. Others were plans to travel at another time of year, preferring to vacation at home and lingering concerns about the pandemic.
“The prevailing sentiment reveals a notable decline in vacation plans among Canadian citizens,” Alexandre Desoutter, spokesperson for HelloSafe in Canada, said in a press release. “Factors such as ongoing economic uncertainties, lingering concerns over public health, and the desire to prioritize safety and well-being have culminated in fewer individuals opting for vacations.”
The quarter of Canadians who do plan to go on vacation are choosing nearby destinations, with almost 70 per cent of them intending to stay within Canada. Only 31 per cent are planning to travel abroad this summer.
“It seems that a significant shift has occurred among Canadians this summer,” Desoutter said. “This shift reflects a cautious approach by Canadians who are prioritizing their immediate surroundings and seeking alternative ways to unwind and rejuvenate closer to home.”
Canadians are also planning on taking shorter vacations with one to two weeks being the most popular.
As for spending, 34 per cent of those polled who are taking a vacation say they are budgeting over $1,500 a person including transportation, accommodations and other expenses. Others say they plan to spend less.
The economic climate doesn’t appear to be getting in the way of business travel, however, thanks to generation-Z Canadians.
A survey by American Express Canada found that business travel is a high or top priority for 64 per cent of this age group which includes people up to 26 years old. Fifty-eight per cent of them say they are planning to travel more for work in 2023 than they did last year and most expect to spend more on air transport, accommodations and car rentals.
Almost 90 per cent of gen-Z Canadians are also likely to add personal vacation or time-off to their business travel plans.
Kelley Keehn, founder of Money Wise Workplaces, recently offered some tips to the Financial Post’s Larysa Harapyn on how to save this summer travel season. Watch the video to find out more.
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A slower deal flow is spilling over into a tough market for financings, with 468 debt and equity deals worth $254.7 billion in the first half of the year, down 16.3 per cent and 14.3 per cent, respectively, from last year, according to tallies compiled by Financial Post Data.
Corporate debt deals raised just $149.8 billion, down 19 per cent from the same period last year.
There were no preferred equity deals at all, while structured product equity deals fell by 55.6 per cent to just eight deals, with value cratering by two-thirds to $268.71 million, writes Financial Post’s Barbara Shecter. Read the full story for more details.
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Today’s data: Canadian employment report; U.S. employment report, global supply chain pressure index
Earnings: Postmedia Network Canada Corp.
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Canada mimics U.S. strategy by offering nearly $30 billion for Stellantis, Volkswagen battery plants
Toronto housing market slips as Bank of Canada decision looms
Two Canadian pension plans risk reputation hit from investments in troubled Thames Water
Determining your portfolio’s strategic asset mix can be an invaluable starting point
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Canada’s population continues to age, and the number of retirees grows annually, so it may finally be time for the government to consider some simple tax system reforms as they relate to encouraging, and prolonging, Canadians’ retirement savings. Tax expert Jamie Golombek reviews some of the various suggestions for reform. Read it here.
Mergers allow WestJet to offer discount fares on all flights, CEO says
Flair CEO on why its shaping up to be a hot, hot summer for air travel
WestJet to discontinue Swoop Airlines, merge it into main operations
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Today’s Posthaste was written by Noella Ovid, with additional reporting from The Canadian Press, Thomson Reuters and Bloomberg.
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