Australians are making sacrifices in their daily spending to secure their next getaway, with new iSelect research showing 55% are reducing restaurant meals and 46% are cutting takeaway.
The survey highlights a growing trend of households shifting budgets toward travel, despite cost-of-living pressures. Entertainment (41%) and clothing (39%) were next on the list of common cutbacks.
How Australians are reshuffling spending to travel
The data reveals that 30% of Australians are set to review their travel and leisure spending this spring, with many rethinking how and where holiday dollars are allocated.
With warmer weather and a forecasted wet season ahead, 34% of respondents plan to choose more affordable options such as local getaways instead of higher-cost trips.
Sophie Ryan, iSelect spokesperson, said: “Australians are passionate travellers, but rising costs are forcing many to get creative with their budgets. Whether that’s swapping overseas trips for local escapes or cutting back on everyday luxuries, it’s clear that holidays remain a priority, and people are willing to make sacrifices elsewhere to afford them.”
Overseas departures continue to climb
Despite signs of restraint in other areas, overseas travel demand remains strong. According to the latest Australian Bureau of Statistics figures, 1,819,770 overseas departures were recorded in July, an increase of 10.3% year on year.
Indonesia, New Zealand, the United Kingdom, the United States and Thailand were the top five destinations. These markets remain key drivers for outbound travel and continue to dominate booking trends.
Why value for money is front of mind
iSelect’s research suggests that “value for money” holidays are shaping traveller choices. Ryan noted that comparing travel insurance and other household expenses could free up significant funds for future trips.
“With so many Australians looking for any way to cut costs to afford a holiday, it’s also a great time to review your travel insurance and other household expenses to make sure you’re getting the best deal,” she said.
“A few smart comparisons across things like insurance, utilities and streaming services could potentially free up hundreds of dollars a year, money that could go directly towards your next getaway. Not only can comparing help you save, but it can also give you the confidence that you’re adequately covered and getting value for money, so you can truly relax and enjoy your holiday.”
What this means for travel trade
The insights point to an increasingly pragmatic Australian traveller: one who is unwilling to give up holidays but willing to cut back elsewhere. For the trade, this signals a continued demand for competitive packages, flexible itineraries, and reassurance around value.
Agents have an opportunity to highlight affordable options such as local experiences, bundled deals, and transparent insurance solutions that match clients’ budgets. With household spending under pressure, the ability to demonstrate clear cost savings could be a deciding factor in closing bookings.
KARRYON UNPACKS: Australians are trimming restaurants, takeaways and shopping to fund their holidays. For agents, this is the moment to lean into value-driven offers, flexible options, and clear cost savings that help clients keep travel front of mind.
