Travel budgets soar: High living costs can’t ground Australians
Australians are spending more than ever on travel, with new figures showing travel budgets in 2024 increased by 35 per cent year-over-year (YOY) to meet rising inflation, despite the cost-of-living crunch.
In a nod to the pulling power of ‘escapism’, the exclusive research has revealed that Australians are refusing to tighten their travel purse strings despite household spending growth slowing in the first quarter of the year, according to the Australian Bureau of Statistics.[1]
The research was derived from a global survey of 21,000 respondents commissioned by leading global assistance company, Europ Assistance, the parent company of award-winning Australian travel insurance provider Insure&Go. The Europ Assistance 2024 Holiday Barometer is an annual global survey that was conducted in 21 countries and is designed to uncover travel trends. The survey also included 1,000 Australians.
Respondents were asked about what factors would play a role in their choice of destination for their next trip - including weather, safety and budget – alongside the size of their travel purse and whether inflation would decrease their purchasing power and force them to adapt their travel plans.
The research found the average Australian travel budget is now AUD$6,145.01 (EUR€3792)[2], compared with a significantly lower AUD$4,548.79 (EUR€2807)2 revealed in the Europ Assistance 2023 Holiday Barometer – a 35 per cent increase. Additional figures show Australians are now on average spending a whopping 55 per cent more than Europeans (whose budgets this year are AUD$3,963.79 or EUR€2446)2 and 15 per cent more than the budgets of North Americans (AUD$5,321.78 or EUR€3284).2 View the complete survey figures here:
While the figures indicate a love of travel could be inspiring Aussies to meet rising costs, the data shows many are nevertheless adapting their travel spending for their next trip to afford the higher costs of travel – more than their European and North American counterparts. More than a third (36%) of Australian respondents said inflation will impact their travel plans. Specifically, 60 per cent say they will book cheaper accommodation. A slightly lower 58 per cent of Europeans and 57 per cent of North Americans say the same.
More than half (55%) of Australians confess they will take cheaper means of transportation (compared with 47% of Europeans and 45% of North Americans), while 52 per cent will hunt for last-minute deals (higher than the 48% of Europeans and 53% North Americans who say the same). More than 1 in 2 Australians (53%) will reduce their food, visa and activity budgets and 43 per cent say they will select a closer destination to ease the travel budget. Just over 4 out of 10 (41%) will reduce their trip duration.
When it comes to what factors are playing a key role in Australians’ travel destination choices, their budget ranks highest, at 53 per cent, followed by opportunities for leisure or cultural activities, at 51 per cent. The weather has an impact on almost 2 in 5 Aussies (37%), while the quality of onsite tourist infrastructure and travel time also play a role, at 34 per cent and 31 per cent respectively. Australians are less concerned about both personal safety and terrorism than North American and European respondents, with just over a third saying it impacts their choice of destination.
Insure&Go spokesperson and Chief Commercial Officer Jonathan Etkind says: “This research not only shines a light on the importance of travel for Australians, but how much it remains an essential part of the household budget despite inflation rates still being above the Reserve Bank of Australia’s target[3]. This tells us that travel could remain somewhat recession-proof as Australians continue to value and prioritise experiences and even ‘escapism’.
“Adding to this is the fact the report findings show only a third of Australians intend to reduce their travel time. Out of the three continents surveyed, Australians also take the longest trips, at 2.1 weeks, compared with North Americans who take an average holiday of 1.8 weeks and Europeans at 2 weeks.
“Yet with well over half of Australians looking to reduce hotel and transport costs, we’re seeing a clear picture of just what Aussies will do to make their travel plans affordable.”
| For each of the following factors, please indicate whether it played or will play an essential role, an important but not essential role, or a secondary role in your choice of destination: (multiple choice) | Australia | Europe | North America |
| My intended/possible budget | 53% | 53% | 54% |
| The risk related to armed conflict in the destination zone | 37% | 49% | 39% |
| The weather conditions in the destination country | 37% | 46% | 43% |
| Opportunities for leisure or cultural activities | 51% | 45% | 50% |
| The risk of a terrorist attack / The risk of an armed conflict | 33% | 43% | 38% |
| The risk of a personal attack | 36% | 42% | 39% |
| The quality of on-site tourist infrastructures | 34% | 41% | 32% |
| Travel time to my trip destination | 31% | 35% | 36% |
| The risk of a natural disaster | 30% | 34% | 33% |
| What is your full budget for your next [summer trip/trip] (when you take into account transportation, accommodations, food, leisure activities, etc.)? | Australia (2023) | Australia (2024) | Europe | North America |
| Average | 4,548 | 6,145 | 3,963 | 5,321 |
| Do you expect the context of inflation/decrease in purchasing power to have an impact on your travel plans? (multiple choice) | Australia | Europe | North America |
| Yes | 36% | 32% | 39% |
| No | 32% | 32% | 27% |
| Maybe | 26% | 30% | 29% |
| I don't know | 6% | 6% | 5% |
| Specifically, will you adapt your travel plans by: (multiple choice) | Australia | Europe | North America |
| Booking cheaper mean(s) of accommodation | 60% | 58% | 57% |
| Reducing the number of destinations | 42% | 53% | 49% |
| Reducing my budget spent on food, visits and activities | 53% | 52% | 54% |
| Looking for last-minute deals | 52% | 48% | 53% |
| Taking cheaper mean(s) of transportation | 55% | 47% | 45% |
| Choosing a closer destination | 43% | 45% | 39% |
| Reducing my trip duration | 41% | 42% | 42% |
ENDS
About Insure&Go
Insure&Go (insureandgo.com.au) is one of Australia’s leading, award-winning online travel insurance specialists. Since it was established in Australia in 2012, Insure&Go has covered more than 2 million Australian travellers. Owned by Europ Assistance, which operates in more than 200 countries, Insure&Go has an expansive, 24/7 global assistance network. Insure&Go Australia has won numerous awards and recommendations for its services including the 2024 WeMoney Award for ‘Best for Seniors’ award, the 2023 Canstar award for ‘Outstanding Value – Seniors Travel Insurance’ and ‘Outstanding Value – International Travel Insurance’, the 2023 Finder award for ‘Travel Insurance – Domestic’. More information about Insure&Go’s awards can be found on its website: https://www.insureandgo.com.
Europe Assistance Australia Pty Ltd trading as Insure&Go as an authorised representative AR Number 424825 of the underwriter and insurer Mitsui Sumitomo Insurance Company, Ltd AFSL 240816. Any advice is general advice only and does not take account of your particular circumstances. Before purchasing, decide whether this product is right for you. Consider the PDS and TMD at Insure&Go.com.au.
[1] https://www.abs.gov.au/
[2] As of 17th June 2024, 1 AUD = 0.61 EUR (source: XE)
[3] https://www.rba.gov.au/
