Canadians taking second look at summer spending as costs increase: Survey

35% of Canadians plan to spend less this summer, TD report suggests

Published May 26, 2026  •  Last updated 24 minutes ago  •  2 minute read

A recent study from TD suggetsed that some Canadians will abandon their summer travel plans as cost pressures heat up. Photo by Jack Boland/Toronto Sun/Postmedia Network

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Is the traditional Canadian summer vacation becoming a thing of the past? 

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A recent survey from TD suggests that Canadians are taking a second look at summer spending as pressure on the pocketbook continues to shape household budgets and travel plans.  

Key findings from the report say that “35% of Canadians plan to spend less this summer, 44% say higher fuel costs are influencing travel decisions, 24% of Gen Z Canadians — the highest among all generations — plan to increase their summer spending, driven largely by social pressure and 79% of Canadians plan to support local or Canadian businesses, with 48% saying it’s a stronger priority than last summer.” 

High gas prices

Gas prices across the region continue to set records, prices driven skyward due to the war in Iran, shipping issues in the Strait of Hormuz and the arrival of summer-blend gasolines. Summer fuel blends typically add 10 cents to the cost at the pump. Traditionally, summer gas price increases hit the fuel pumps in the mid-April timeframe.  

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Dan McTeague, the president of Canadians for Affordable Energy, says gas prices could reach $2 a litre. 

Currently, across the GTA, gas prices are averaging about 182.9 per litre. As a comparison only, back in January, average gas prices ranged from 122.9 to 1.30.9 per litre.  

Making tradeoffs

The survey also highlighted how cost pressures are pushing Canadians to make financial trade-offs. 

Among those cutting back this summer, 40% list the increasing cost of transportation as a key factor, while 62% are redirecting spending towards everyday needs, such as groceries, fuel and housing. 

“Summer comes with a lot of expectations and spending can add up quickly,” said Sumaiya Bhula, Senior Manager, Saving and Investing Journey at TD. “Simple steps like setting a realistic budget, tracking expenses and prioritizing what matters most can help Canadians stay in control while still enjoying the season.” 

Cost of food a factor

While not discussed in the TD study, food prices are also having an affect on consumer spending. 

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Back in February the Bank of Canada published a story on its website, attempting to explain why food prices continue to skyrocket. 

“Since 2022, grocery prices have risen by about 22%, while other consumer prices have gone up on average by 13%,” the report said. “And in 2025, food inflation—the year-over-year increase in prices for food purchased at stores—was elevated. In December, food inflation reached 5%, the highest since late 2023. 

“Rising food prices have a large and immediate effect on households — who spend around 11% of their budget on groceries — and on total inflation.” 

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