Australian travellers still prioritise overseas trips despite the soaring cost of living with travel budgets rising by 35 per cent yearly in the last 12 months. Here’s how travel advisors can tap into the trend and help their clients make the most of their budgets.
The Europ Assistance 2024 Holiday Barometer report reveals how Aussies save on their holidays and where they will pull back on travel to make their dollar go further.
The global survey found the average Australian travel budget is now AUD$6,145.01 compared to $4,578.79 in 2023 – a 35 per cent increase.
This includes transportation, accommodation, food, leisure activities and other holiday spending.
Travel budgets impact trip considerations
More than half of Aussies (53%) said their travel budget is a key factor in destination choice while 36 per cent indicated that inflation would impact their travel plans.
This is followed by opportunities for leisure and cultural activities (51%), weather (37%) and travel time (31%).
While a recent study found 65 per cent of Aussies would cut back on discretionary spending to save for overseas holidays, this report shows they will also adapt their budgets while travelling.
These findings position advisors as the ideal guide to help travellers find the best travel deals for their budgets this year, particularly as consumers report feeling overwhelmed by a rising volume of air travel options.
Where Aussies will save to stretch their travel budgets
Aussies will look at several ways to adapt their travel spending in 2024 with reducing accommodation and transport costs high on the list.
Four out of 10 Aussies (41%) will reduce their trip duration (currently at 2.1 weeks on average), 42 per cent will reduce the number of destinations visited on their trip and 43 per cent will opt for close-to-home destinations to stretch their travel budget.
Almost two-thirds of Aussies (60%) said they will book cheaper accommodation, 55 per cent will use cheaper modes of transport and 52 per cent will look for last-minute deals to save on travel.
In addition, 53 per cent of Aussie holidaymakers will reduce their food and activity budgets while travelling.
Read the full report here.
