Yahoo Finance Rising cost of living hampering Aussies’ travel plans
Aussies are less likely to travel overseas and interstate this year due to the rising cost of living.
Aussies are cutting back on travel spending this year, as the rising cost of living sees everyday expenses like groceries, petrol and electricity skyrocket.
New research by Southern Cross Travel Insurance found that, while 87 per cent of Aussies planned to travel this year, 83 per cent would have to reduce their spending due to the rising cost of living.
Nearly half of the 1,028 Aussies surveyed (48 per cent) said they were less likely to travel overseas in the next 12 months due to rising costs, while more than a third (37 per cent) were less likely to travel interstate.
“It’s unsurprising, following the lockdowns, that Australians still have a huge appetite to get out there and see the world,” Southern Cross Travel Insurance CEO Jo McCauley said.
“But the rising cost of living is impacting Australians across all areas and travel is no exception, so it’s understandable Australians will be looking for ways to cut costs while still trying to make those trips happen.”
The main way Aussies were cutting costs was by booking cheaper or budget accommodation (39 per cent), taking fewer trips overall (37 per cent) and taking shorter trips (36 per cent).
One in 10 Aussies said they would forgo travel insurance to save money, with Millennials twice as likely as Baby Boomers to take the risk.
McCauley said this could be dangerous and noted that an air ambulance from Bali to Sydney could set you back between $80,000 and $110,000.
Household spending rose 17.8 per cent in January compared to the same time last year, the latest data from the Australian Bureau of Statistics found.
This was driven by holiday-related spending, with spending on transport up 41.5 per cent, hotels, cafes and restaurants up 38.5 per cent, and recreation and culture up 17 per cent.
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