While Americans are keeping a closer eye on all of dollars, particularly those earmarked for vacations, Canadians seem prepared to spend in order to enjoy their times off.
A new CIBC poll conducted by Leger Marketing shows that 55 per cent of Canadians surveyed are planning to take a vacation this summer, spending $1700 on average to enjoy some time away from home. Most are vacationing somewhere within Canada, and the majority will be using either their debit card or credit card to pay for purchases away from home.
Key findings of the poll include:
- 55 per cent of Canadians surveyed are taking a vacation this summer.
- Among these Canadians:
- They are planning to spend an average of $1,728 on their vacation plans for July/August
- 74 per cent are planning a trip within Canada
- 24 per cent are visiting the U.S.
- 9 per cent are travelling outside of North America*
- Albertans surveyed have the biggest travel budgets this summer, averaging $2,270.
- Residents of Quebec were planning to spend only $1,321 on average, among the lowest in the country.
- A large majority of Canadians surveyed (78 per cent) have planned ahead and saved the money they need to pay for their summer vacation.
“It is great to see that so many Canadians are planning to explore Canada this summer by spending their vacation dollars here at home,” said Colette Delaney, Executive Vice-President, CIBC. “These results show that many Canadians have planned ahead for the costs associated with taking a vacation this summer, which allows them to enjoy their holiday knowing they’ve budgeted for the trip ahead of time.”
The poll also revealed:
- Canadian prefer to pay for things with credit and debit cards when they are on vacation, not cash:
- Collectively, 78 per cent of Canadians surveyed who have travel plans this summer are going to use either their debit or credit card to make purchases while on the road (51 per cent credit, 26 per cent debit)
- Only 21 per cent will be using cash
“Your debit and credit card offer greater security than travelling with cash, and offer unique benefits to help you make the most of your vacation” added Ms. Delaney. “From valuable insurance coverage and travel benefits on your credit card, to the option to pay right away with money from your chequing account using a debit card, it makes sense to use both when on vacation this summer.”
Interestingly, the likelihood of Canadians using their debit card drops significantly once they cross the border. Among the travelers surveyed who are staying within Canada, 30 per cent said they would use their debit card as their primary means of making purchases while on vacation. That drops substantially among those travelling outside Canada (12 per cent).
“Some Canadians may assume they can’t pay by debit outside of Canada, but with options like the CIBC Advantage Debit Card, Canadians have the opportunity of paying from their bank account where Visa is accepted,” added Ms. Delaney. “It’s one more option for Canadians to pay for purchases when they are travelling, especially for those who already prefer to pay by debit here in Canada.”
The CIBC Advantage Debit Card can be used to securely pay for purchases directly from your CIBC account as well as for all your day-to-day banking. With this debit card you can shop in Canada as you always have with INTERAC Debit. In addition, with the added benefit of Visa Debit, you can shop in stores around the world, as well as at participating retailers online, over the phone, or by mail.
CIBC Offers Top 4 Tips For Summer Travelers
Ms. Delaney offered these tips for summer travelers:
1. Set a budget and stick to it for your summer vacation
Have funds set aside that you can use to pay for vacation related expenses. If you are planning to use your credit card, use free budgeting tools such as CIBC CreditSmart – which allows you to set customized budgets and receive spend alerts if you exceed your planned budget for spending, helping you stay on top of your vacation budget.
2. Ensure you have choice when paying for vacation expenses
Travel with both a debit and credit card to ensure you can take advantage of the features of both. With debit cards you can pay for purchases directly from your bank account. A credit card could be used for purchases you may wish to pay for when you get back. Both are more secure than cash.
3. Be aware of what your cards can offer you at no added cost
Many credit cards offer travel insurance that will help you deal with unexpected travel emergencies or illnesses. Travel insurance on some cards can even save you money. For example, some cards offer Auto Rental Collision/Loss Damage Insurance at no cost – which can reduce the cost of renting a car this summer.
4. Use loyalty rewards to help pay for your vacation
CIBC clients can earn loyalty points to help pay for hotels, rental cars, flights, merchandise and other travel expenses. Be sure to look into what your cards can offer you.
For more information and tips, visit the CIBC Advice Centre.
Among Canadians surveyed who are planning to take a vacation this summer, average amount they plan to spend, by region:
|Atlantic Canada –||$1,389|
Among Canadians surveyed who are planning to take a vacation this summer, destination that they plan to travel to, by region:
Among Canadians surveyed who are planning to take a vacation this summer, percentage that said they saved money to pay for their vacation, by region:
|Atlantic Canada –||77%|
* Totals add to more than 100 per cent as some respondents indicated they were taking more than one trip this summer.
Results are based on a CIBC poll conducted online by Leger Marketing, which surveyed 1,501 Canadians. The associated margin of error for a probabilistic sample of the same size is +/-2.5%, 19 times out of 20. Polling was conducted between June 18 and 20, 2012.