Wednesday, July 9, 2025
Canada’s travel industry is confronting a powerful new challenge as financial strain, mental health crises, and burnout reshape consumer habits and workforce stability. A new nationwide survey reveals the depth of stress and economic hardship gripping Canadians — forces that are rippling through airlines, hotels, and tourism businesses already battling tight margins and rising costs.
With more travelers delaying holidays, slashing budgets, and grappling with job insecurity, the findings paint a stark warning for travel professionals: the traditional rules of demand and spending may be shifting under our feet.
Canadians Cutting Back on Travel Amid Rising Financial Pressures
Harris & Partners, a Licensed Insolvency Trustee firm, surveyed 1,731 Canadians and found that 58% felt burned out or emotionally drained over the past year. More alarming for the travel sector, 34.4% admitted they’ve delayed taking holidays or personal time off, while a significant share reported cutting essential spending to make ends meet.
For airlines, tour operators, and hotels, the numbers signal softening demand from consumers who might otherwise book getaways, leisure trips, or even business travel. Many Canadians are wrestling with hard financial choices, prioritizing basic living costs over discretionary spending like vacations.
Travel Professionals Confront a “Do More With Less” Economy
Within the tourism workforce itself, the survey uncovers rising stress levels and uncompensated labor. Over half of respondents (52.6%) said their workloads have increased, yet pay and benefits haven’t kept pace. Nearly 15% acknowledged working unpaid overtime.
For hotels, airlines, and attractions, these workforce strains translate directly into operational challenges. Staff shortages, lower morale, and higher turnover threaten service levels and guest satisfaction. Even the best-run properties or tour companies may struggle to maintain quality amid a burned-out labor force.
Travel industry HR teams and management now face a dual challenge: attract and retain talent while maintaining profitability in an environment where many workers feel overwhelmed and undervalued.
Financial Stress Alters Consumer Travel Habits
While inflation has moderated in Canada, many households are still feeling squeezed. The survey reveals that 36.9% of Canadians have skipped meals or essentials to cover expenses. Even more worrisome, 33.1% have relied on credit just to afford basic costs like groceries or rent.
For the travel industry, this financial stress spells caution. Travel advisors and marketing teams should brace for increased price sensitivity. Consumers may still crave getaways, but they’re opting for shorter trips, budget accommodations, or last-minute deals. Loyalty programs and flexible booking policies could become key differentiators in winning increasingly cautious customers.
Moreover, consumers worried about finances are less likely to spend on ancillary services — from upgraded seats and spa treatments to premium excursions. Travel companies will need creative strategies to protect revenue in a market where upselling becomes tougher.
Mental Health Crisis Hits Hospitality and Airline Staff
The mental health crisis among Canadian workers carries significant implications for tourism operations. A staggering 76.3% of respondents said their mental health has been negatively affected by job or financial stress in the past year.
Airlines, hotels, and tourism businesses depend on frontline staff who engage directly with travelers. Yet, with mental health declining across the workforce, service levels and guest experiences could suffer.
Travel industry leaders are investing in wellness programs, flexible schedules, and employee assistance initiatives. However, the scale of the problem suggests deeper structural changes may be needed to support workers and retain talent long-term.
Delayed Trips, Deferred Dreams
Financial and work-related pressures aren’t just hitting the workforce; they’re reshaping traveler behaviors. Among the survey’s more sobering findings:
- 34.4% delayed holidays or personal time off
- 20.3% struggled to pay bills on time
- 14.1% postponed seeking medical or mental health care
- 13.7% delayed seeing friends or family
This reluctance to travel signals potential headwinds for the industry’s recovery and growth. For tourism marketers, it’s a clear cue to pivot messaging. Rather than just promoting luxury escapes, many brands may focus on affordable experiences, mental health benefits of travel, and flexible, no-risk booking options.
Career Changes Shake Up the Travel Workforce
Adding to industry uncertainty, 54.5% of respondents say financial pressures have made them consider changing jobs or careers. Over 11% have already done so.
For airlines, tour operators, and hotels, this signals ongoing risk of losing trained talent. From flight attendants to guest services staff, skilled workers are increasingly open to leaving tourism for sectors offering higher pay, better hours, or lower stress.
In a sector still recovering from pandemic-era layoffs and closures, the potential for renewed staff churn threatens stability. Employers must rethink pay scales, career pathways, and staff well-being initiatives to compete in a tightening labor market.
Canadians Unaware of Financial Help Options
Despite the strain, nearly a third of Canadians (29.2%) don’t know where to turn if their finances become unmanageable, and only 39.3% feel confident about where to get help.
This knowledge gap indirectly impacts travel. Consumers hesitant to seek financial advice may continue cutting back on discretionary spending — including travel — even when professional help might stabilize their situation.
For travel advisors, tour operators, and hospitality brands, this context matters. Understanding the emotional and financial mindset of consumers can inform marketing, pricing, and service strategies that resonate more authentically with stressed Canadians.
Travel Industry Must Prepare for Lasting Shifts
The Harris & Partners survey shines a bright spotlight on the intersection of financial distress and travel. While travel demand has rebounded since the pandemic, these findings reveal new vulnerabilities:
- Canadians delaying holidays and trips
- Workforce burnout threatening service quality
- Rising financial caution reducing ancillary spending
- Potential shifts in labor as workers leave tourism roles
For travel professionals, the message is clear: strategies built on pre-pandemic assumptions may no longer hold. Flexibility, empathy, and innovative product offerings will be critical as the industry navigates an era of economic pressure and evolving traveler psychology.
Travel remains an essential escape and a source of joy. But as this survey shows, more Canadians are pausing, counting costs, and putting wellbeing first — a trend the industry can’t afford to ignore.
