Cost-of-living concerns impacting Aussie travel plans

Four in five Australian holidaymakers are reconsidering their travel plans due to the rising cost of living.

Research conducted by YouGov found while 87 per cent of Australians planned to travel at some point this year, 83 per cent said they would need to rein in spending.

The rising cost of living and spiralling inflation has led to 48 per cent of people being less likely to travel overseas in the next 12 months, while 37 per cent are less likely to go interstate.

For those still travelling, almost half would book cheaper accommodation, while 36 per cent would take a shorter trip and one in 10 wouldn’t take out travel insurance.

The poll of more than 1000 people was commissioned by Southern Cross Travel Insurance, whose chief executive Jo McCauley said while COVID-19 disrupted travel in previous years, household budgets were now the dominant factor.

“It’s unsurprising, following the lockdowns, that Australians still have a huge appetite to get out there and see the world,” she 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.”

Despite the cost-of-living concerns, there was a 22 per cent increase in the number of Australians looking to go overseas, compared to the year before.

Meanwhile, 77 per cent said they planned to holiday in their home state during the next 12 months

The impact of cost-of-living concerns will be front of mind when the Australian Bureau of Statistics releases its household spending indicators on Tuesday.

The bureau will also release business turnover figures, while NAB publishes business sentiment data, and ANZ and Roy Morgan put out consumer confidence data.