Australians adapt travel plans amidst cost-of-living surge
Australians adapt travel plans amidst cost-of-living surge | Insurance Business Australia
Travel
Australians adapt travel plans amidst cost-of-living surge
Insurer highlights travellers’ risky cost-cutting strategy
Travel
By
Roxanne Libatique
Amid escalating living costs, Australian travel habits are undergoing significant changes, with a new survey from Southern Cross Travel Insurance (SCTI) revealing the extent to which financial pressures are reshaping travel priorities.
According to the survey, a striking 83% of Australians intending to travel within the next year are considering ways to economise their travel expenditures.
The “Future of Travel 2024” report, commissioned by SCTI, aims to dissect the impact of the cost-of-living crunch on Australian travel intentions. It uncovered that despite economic headwinds, 91% of Australians still harbor plans to venture domestically or abroad in the coming 12 months. The report, however, noted a cautious approach to travel, with a notable shift towards domestic over international destinations, attributed to financial strains.
How Australians plan their trips
This year’s insights indicate a discernible uptick in cost-conscious travel planning, with 43% of respondents expressing reluctance towards interstate travel, and a majority (53%) hesitating to embark on international journeys, attributing their reservations to the escalating cost-of-living. These figures represent a significant rise from the previous year, suggesting a deepening concern over economic conditions among Australian travellers.
Travel, nonetheless, remains a cherished expenditure for many Australians, with nearly half of the respondents (47%) rating it as a higher priority compared to other discretionary spends. Among these, 21% identified travel as a paramount interest.
How Australians align travel plans with their budgets
The survey also highlighted various strategies adopted by Australians to align their travel plans with their budgets. Key approaches include:
seeking budget-friendly lodging;
minimising travel frequency;
opting for shorter durations; and
choosing less expensive destinations.
Aussies ditch travel insurance
A concerning finding from the study was the potential omission of travel insurance by over 2.4 million Australians – a bid to economise that might bear risky consequences, especially noted among younger demographics.
SCTI CEO Jo McCauley underscored the critical role of travel insurance, cautioning against its exclusion as a budgetary compromise.
“We know how tempting it might be to skimp on travel insurance to save a few dollars, but we’d encourage everyone to ensure they take out travel insurance regardless of where they’re travelling. Overseas medical bills can be in the tens of thousands, occasionally the hundreds. It’s simply not worth the risk,” she said.
Conducted in January 2024 by YouGov, the survey polled 1,018 Australians aged 18 and above, offering a glimpse into the adaptive measures Australians are willing to take to sustain their travel endeavours amid economic pressures.
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