The high cost of (some) international airfares can be enough to send a chill down many a spine. But how much are inflated airfares actually impacting decisions to travel abroad? A new study by comparison website Finder sheds some light on this.
To the question, ‘Has the cost of international travel become prohibitive for you?’, nearly four in ten (37 per cent) of the over 1,000 Aussies polled replied in the affirmative. Another quarter (23 per cent) answered ‘No, but it’s close’.
This would suggest that a growing number of Australians are being priced out of international travel.
But encouragingly, four in ten (40 per cent) respondents, and therefore the highest number, said that the cost of overseas travel had not become prohibitive for them.
Aussies’ intent to travel is borne out in outbound travel numbers too. According to the latest Australian Bureau of Statistics (ABS) data, there were 1,324,360 overseas departures in March 2023, a monthly increase of 255,950 trips (and year-on-year increase of 989,120 trips).
Balancing budgets
Despite the positive sentiment towards international travel, Finder travel insurance expert James Martin said holidays should be well-budgeted.
“The rising cost of living is impacting everything from groceries to petrol, and flights are no exception,” he said.
“Discretionary spending is taking a back seat as many look for ways to cut back.”
But with some smart planning, “you can plan for the large expense even if it’s five years down the road”.
“Book in advance, travel off-peak and keep tabs for airfare sales to secure the cheapest international flights,” he said.
Martin added that holidaymakers could use “banked-up rewards points and travelling domestically” to save money, but warned against skimping on travel insurance.
“If you can’t afford to insure your trip, you can’t afford to take the holiday,” he remarked.
“It’s best to organise your travel cover as soon as possible after you book your trip.”
According to Finder, less than four in ten (37 per cent) Australians said they would take out international travel insurance, including eight per cent of those who are already insured through their credit card.
The Finder study took into account the opinions of 1,079 Australians in April 2023.
A recent CBA report showed that Australian consumers are throwing their budgets out the window in order to travel.
Flight Centre, FCM, and Qantas bosses also recently weighed in on the cost and outlook for airfares.
