Australia is entering the largest transfer of private wealth in its history. Financial analysts estimate trillions of dollars will move from older Australians to their children over the next two decades, reshaping how families spend, invest and travel. As this shift accelerates, the travel trade faces a significant commercial opportunity.
Australia’s Productivity Commission has found that inherited assets currently total about $120 billion a year and could almost quadruple to nearly $500 billion annually over the next 25 years, largely in the form of residential property and unspent superannuation. Independent modelling drawing on CoreData research and advisory firm analysis suggests the potential intergenerational wealth transfer sits in the order of $3.5–4.9 trillion, depending on the time horizon and assumptions.
A growing share of that wealth will flow straight into discretionary spending. Financial planners routinely flag travel as one of the most immediate and meaningful ways Australians deploy inheritances, sitting alongside debt reduction and housing costs. Consumer research shows both older and younger Australians re-evaluating the purpose of savings, with leisure time and memorable experiences now carrying more weight than traditional savings goals.
As younger adults gain access to more money, whether through early inheritances, financial support from parents or increased earning power, their travel patterns are shifting. Industry research points to two clear movements: more frequent travel, driven by flexible work and a desire for regular breaks, and a willingness to upgrade to premium cabins, boutique hotels and tailored experiences when discretionary funds allow. This is a cohort that favours shorter planning cycles, higher-value add-ons and experiential depth rather than traditional luxury for its own sake.
Two generations, two different travel behaviours
Younger Australians are already behaving like future inheritors. Southern Cross Travel Insurance’s Future of Travel 2025 research found that almost half (45 per cent) of Australians aged 18 to 44 are prioritising spending their savings on travel over pursuing the traditional home-ownership goal in the near term. Booking.com’s 2025 Travel Predictions report that 46 per cent of travellers globally would prefer to spend their money on a “trip of a lifetime” in 2025 rather than leave it as an inheritance.
Older Australians are equally split in their intentions. Some are conserving savings to support children facing high housing costs. Others are pursuing extended domestic and international travel in retirement, including preferred long-stay and purpose-driven itineraries. This dual trend has given rise to the grey gap year, multigenerational travel and increased demand for longer, more immersive experiences.
Why the travel trade needs to act now
For travel advisors, the commercial implications are direct. Family decision-making is shifting. In many households, younger adults now drive destination choice, sustainability preferences and trip style, even when older relatives fund the journey. At the same time, inheriting generations are more values-led, informed and discerning than those who preceded them.
Luxury travel providers are already positioning for a younger client base. Global hotel groups have expanded their premium and ultra-premium offerings to appeal to Millennials and Gen X travellers who are entering their peak earning and inheriting years. Research from industry consultancies shows this segment prioritises wellness, cultural immersion and personalised experiences over traditional status markers.
The travel trade will need to adapt. Advisors with long-standing relationships with older clients risk losing the next generation if they do not establish rapport early. New products must reflect shifting priorities: extended itineraries, sustainability considerations, personalised luxury, accessible multi-stop trips and tailored experiences for families travelling together. Messaging and marketing must reflect different financial realities and planning horizons.
For suppliers, the opportunity lies in repositioning product towards flexibility and depth. Small-group touring, private guided travel, bespoke cruising and modular itineraries allow families to combine budgets and preferences in ways that suit multiple generations. The demand for meaningful travel experiences is rising in parallel with the transfer of wealth that can support them.
KARRYON UNPACKS: The coming decade will be shaped by this financial realignment. For Australia’s travel industry, understanding how families plan to spend inherited resources is essential. Those who adjust early will benefit from an emerging customer segment defined less by age and more by intention, values and the means to explore the world on their own terms.
