While some tough spending decisions are being made, some are prepared to cut further to afford this
Whenever we enter challenging economic conditions there are some things that remain clearly defined as ‘essential’ spending such as food, shelter, travel to work, and so on.
But changing trends and priorities emerge over time too. A couple of decades ago, smartphones and broadband were not essential, today they are for most Canadians.
But according to a new survey, something which may still be considered a luxury ‘nice to have’ rather than an essential is prompting some hard budgeting decisions among many Canadians – travel.
Almost 6 in 10 respondents who had taken a flight at least once in the last two years said that they have cut non-essential spending to be able to afford to travel in 2023, rising to 77% of those in New Brunswick.
The desire to escape means that 28% of poll participants said they would put a trip on their credit card as they cannot otherwise afford to travel and 41% of those that needed to tighten their belts to afford a trip reported having reduced their daily grocery expenses to do so.
The national survey of 2000 Canadian adults was conducted by Montreal-based company FlightHub Group.
"Even amidst challenging economic times, the desire to explore and connect with the world remains a fundamental aspect of the human spirit,” said the firm’s CEO Chris Cave. “Travel has the remarkable ability to transcend financial concerns, providing a unique and enriching experience.”
Young Canadians forego other fun
Among millennials, 57% of respondents said they have cut back on other entertainment experiences in favour of travel. That means lower spending on restaurants, theatres, or concerts.
For Gen Zs, 69% said they would work extra hours to meet their travel goals which includes international destinations such as London, Manila, and Paris. This generation is booking more flights that Boomers this year the firm said.
