Cost-of-living pressures continue to impact Australians beyond the day-to-day with new research highlighting how 2025 travel choices differ by generation. Here’s what travel advisors need to know.
For 2025 travel choices, Gen Z and Millennials are more likely to forgo home ownership to travel, while Gen X and Boomers will sacrifice their holiday plans to leave an inheritance for the kids and grandkids.
A new Southern Cross Travel Insurance (SCTI) survey shows that 45 per cent of adults aged 18–44 years would spend more on travel and other experiences than saving for a home.
Meanwhile, 38 per cent of Aussie parents aged 45-plus spend less on travel to leave an inheritance for kids and grandkids to help them afford a home.
The survey also found that 76 per cent of Aussies travelled intrastate, 55 per cent travelled interstate and 40 per cent travelled overseas in 2024.
2025 travel choices: more travel planned, less frequent trips
SCTI’s The Future of Travel 2025 report found a decreased propensity for travel among Aussies last year, but the good news is that it’s trending up this year, although planned travel frequency remains lower.
At the end of 2024, the number of Aussies travelling remained consistent compared to earlier in the year, but there was a drop in the number of average domestic trips.
An average of 2.4 intrastate trips were taken in the past 12 months compared to 2.8 in January 2024 and an average of 1.8 interstate trips compared to 2.1.
Looking ahead, 91 per cent of Australians have indicated that they plan to travel in the next 12 months with Gen Z (59%) and Millennials (61%) at the forefront.
This is compared to Gen X at 43 per cent and Baby Boomers at 41 per cent.
For 2025 travel choices, one in two Aussies (50%) plan to travel overseas with beach holidays (40%), authentic experiences (30%), road trips (29%) and nature (26%) leading the way.
