Yahoo Finance How Angela saved for her $11,000 European holiday
Despite the rising cost of living, travel has remained a top priority for many Aussies.
Angela has just returned home from a three-week holiday in Eastern Europe with her partner and is already planning her next trip.
The avid traveller went over to Croatia to visit her grandmother, who she hadn’t seen in four years due to COVID. She also travelled to Romania, Bulgaria, North Macedonia and Germany.
Angela said travel was something she would never dream of giving up, despite the current cost-of-living pressures and her increased mortgage repayments.
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“Travel is something that I can’t live without. For me, putting my money that I have earned into travelling and having that experience is something I can’t give up on,” the Brisbane resident told Yahoo Finance.
"Being able to explore new places is something that brings me a lot of joy. I love being able to experience new cultures, learn about the history, learn the language and understand what the rest of the world is like.”
Angela and her partner budgeted $11,000 for their European trip and ended up sticking to this. They are now working towards a trip to Malaysia over Christmas, for which they have budgeted $7,000.
‘Desperation for escapism’
Angela isn’t the only Aussie making travel a priority this year. Recent research by consumer insights and advisory consultancy Fiftyfive5, part of Accenture Song, found a third of Aussies planned to spend more on travel and holidays compared to this time a year ago. And it’s primarily younger Aussies and older Baby Boomers who are spending up.
Fiftyfive5 head of cultural forecasting Michelle Newton noted this was a sustained momentum and followed a big rebound in travel this time last year.
“The fact that momentum is continuing when people are really struggling with groceries and utilities just shows the desperation for escapism,” Newton told Yahoo Finance.
Newton said Aussies had been exposed to continued “microdoses of stress”, through the pandemic and economic crisis, and were now looking for an outlet.
“This need for escape and this need for surprise and delight has never been stronger, and travel is really reflecting that,” Newton said.
“Travel is about the experience and we are moving towards being more focused on experiences and memory-making.”
Fiftyfive5’s research has also noticed a shift in people spending more time on their well-being and health, with an increase in people spending time with family and friends and going for walks.
How are Aussies saving up?
To fund their travels, Aussies are sacrificing things like drinking alcohol out of home, such as at a restaurant, and shopping online. They are also spending less on things like petrol, eating out, food delivery services and electronic devices, according to the research.
Angela said she saved for her travels by cutting back on eating out at restaurants and cutting back on discretionary spending, including electronics and shoes.
She also opened up a dedicated holiday savings fund. She deposits $1,000 each month, and it earns interest.
For other travellers, Angela recommended creating a thorough travel budget to help avoid any unexpected costs.
“[Include] daily food, transport, accommodation costs, as well as any activities or souvenirs you would like to do or buy,” she said.
Her other tips include shopping around for flight deals and accommodation, booking things at least six months in advance if possible, taking advantage of frequent flyer points, and considering travelling to cheaper destinations.
“You might find a hidden gem. North Macedonia was one of the cheapest places I’ve been to in Europe, but by far one of my favourite countries that I’ve ever travelled to,” she said.
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