First, the good news: a major study shows that most Australians, around 85 per cent, intend to holiday over the next 12 months. The bad news is the same study found that about two in three (65 per cent) of those either cancelled or postponed their holiday in the last three months due to their financial situation.
The recent study conducted by banking giant NAB found that one in four (24 per cent) cancelled all of their holiday plans (12 per cent on an overseas holiday and 12 per cent on a domestic holiday). In comparison, nearly half (42 per cent) put off a holiday (21 per cent an overseas holiday and 21 per cent a domestic holiday).
Encouragingly, one in two (51 per cent) respondents said they did not change their travel plans in Q2 (March-June) 2023.
Part of NAB’s latest consumer sentiment survey of some 2,000 Australian respondents, the data revealed that more men (26 per cent) cancelled all of their plans than women (21 per cent).
Older Aussies more committed
Meanwhile, cancellations were highest in the 50-64 (31 per cent) and 30-39 (29 per cent) age groups.
One in four (24 per cent) respondents aged 18-29 said they cancelled their holidays due to financial pressures, while just one in seven (15 per cent) of those aged 65-plus did the same – the lowest age group to cancel trips. This is likely due to more older Australians feeling more financially secure than other age demographics.
According to the study, more than half (59 per cent) of consumers over 65 did not change their travel plans, while just under half (45 per cent) in the 50-64 group did the same.
However, the 50-64 group had the most postponements (45 per cent) of any age demographic.
Interestingly, respondents from lower-income groups were less likely (22 per cent) to cancel a holiday than consumers in higher-income groups (28 per cent).
By changing their current holiday plans, NAB estimates Aussies will save an average of $392 per month.
Less FOMO
NAB Retail Customer Executive Tara Hartley said that while most Aussies still desired to get away over the next 12 months, many had changed their plans this year.
“You could be forgiven for doom scrolling through social media in the depths of winter thinking everyone you know is overseas holidaying in the sun or the crystal blue waters of the Mediterranean,” she said.
But Hartley added, “Just like grocery bills and filling up the car have become more expensive, Australians think holiday plans have become much harder to budget for, and they’ve made considered changes to prioritise spending”.
“Australians are making considered changes to their travel plans, and they might be swapping the Mediterranean for Maroochydore or Bali for Burnie.”
Airfares more than 50% pricier
Based on flight search data for travel between July and December 2023 on travel site KAYAK and its associated brands, international fares rose by 51 per cent to an average price of $1,826 compared to the same period in 2019.
In Flight Centre Travel Group (FCTG) Leisure’s 2023 Travel Intention customer survey, nearly nine in ten (88 per cent) respondents said they intended to holiday abroad within the next 12 months.
For the full NAB study results, click here.
