Affordability Clips Canadians' Wings, Sparking a Holiday Staycation Boom

TORONTO, ON – December 17, 2025 – By Linda Coleman

This holiday season, the greatest adventures for many Canadians may be found in their own backyards. A new CIBC poll has cast a stark light on the financial pressures shaping festive plans, revealing that a staggering 79% of Canadians feel travel has become less affordable over the past five years. This sentiment is translating directly into action, with nearly two-thirds of the population (62%) opting to stay home for the holidays, fundamentally redefining what a seasonal celebration looks like in 2025.

The decision to forgo travel is not a casual one. The poll, conducted by Ipsos on behalf of CIBC, found that 31% of those staying put cite direct budget limitations, while another 22% are consciously prioritizing saving over spending. This widespread financial caution is rooted in a challenging economic landscape. While headline inflation has cooled to 2.2%, core inflation remains stubbornly high, and a 4.7% year-over-year jump in food prices in November has kept household budgets squeezed. With broader consumer surveys showing 81% of Canadians are looking to cut back on spending in the coming months, the pullback from holiday travel appears to be a key part of a larger, more deliberate financial strategy for households nationwide.

The New Holiday Blueprint: A Nation of Local Explorers

Despite the prevailing economic headwinds, the spirit of holiday travel is not entirely grounded. Nearly four in ten Canadians (38%) still plan to journey for the season, a slight dip from 41% in 2024. However, their destinations paint a clear picture of a nation turning inward. International getaways are taking a backseat, with only 12% of travelers planning to head abroad. Instead, the focus has shifted dramatically to domestic exploration, with 19% planning trips within their own province and another 13% traveling elsewhere in Canada.

This pivot towards homegrown holidays is creating a 'staycation nation,' a potential silver lining for Canada's domestic tourism sector. While the industry has faced challenges, including a 16.1% drop in international arrivals in the first half of 2025, the surge in local travel could provide a much-needed boost to regional economies. Projections from the World Travel & Tourism Council forecast that domestic visitor spending in Canada could reach nearly $104 billion in 2025, signaling a robust internal market.

"Canadians are showing both resilience and adaptability this holiday season, and whether its travelling within the country or gathering at home, the focus is on connection, comfort, and making smart financial choices," said Carissa Lucreziano, Vice-President, Financial Planning and Advice at CIBC. This shift underscores a collective move towards finding value and meaning closer to home, prioritizing family connections over far-flung destinations.

The Generational Divide on the Go

One of the most striking findings from the poll is the stark generational divide in travel intentions. Younger Canadians, particularly Gen Z, are twice as likely to travel this holiday season compared to Boomers (50% vs. 26%). This presents a fascinating paradox: the same generation planning the most significant overall spending cuts—with Gen Z anticipating a 35% reduction in holiday expenditures—is also the most determined to pack their bags.

This trend is not about reckless spending, but rather a different set of priorities and strategies. Research consistently shows that younger generations value experiences over material possessions. When faced with tight budgets, they appear more willing to sacrifice spending on gifts to fund their travel ambitions. Their methods are also evolving. They are digital natives adept at hunting for deals and are far more likely to leverage financial tools to their advantage. According to a recent NerdWallet report, 41% of Gen Z holiday shoppers plan to use credit card rewards to fund their plans, compared to just 20% of Boomers. This aligns with the CIBC poll, which found that nearly one in five (18%) of all holiday travelers plan to use points to help cover their expenses.

In contrast, older Canadians appear more risk-averse in the current climate. With many on fixed incomes or focused on retirement savings, they are more inclined to heed economic uncertainties. Data shows they are also more likely to express a preference for supporting Canadian destinations, driven by a combination of economic concern and national pride.

Smart Spending for a Season of Cheer

As Canadians navigate this complex economic environment, financial literacy and strategic planning have become essential holiday tools. The focus has shifted from unrestrained celebration to conscious consumption. CIBC’s advice to set a realistic budget, plan ahead, and compare options resonates with a population actively seeking ways to celebrate without accumulating debt.

The strategic use of loyalty points is a prime example of this new financial savvy. With nearly a third of consumers across all demographics reporting they will use loyalty points to offset holiday costs, what was once a passive perk has become an active budgeting tool. This approach, combined with a trend towards shopping locally and prioritizing meaningful experiences, demonstrates how Canadians are adapting their traditions.

Ultimately, the 2025 holiday season is being defined by a thoughtful recalibration of priorities. It's a period where financial prudence and festive joy are not seen as mutually exclusive, but as goals to be achieved in tandem through careful planning and a clear focus on what truly matters: connection, comfort, and community, whether enjoyed at home or on a road much closer to it.