Cost-of-living pressures reshape Australian road trip trends

Insurer promotes domestic adventures

Cost-of-living pressures reshape Australian road trip trends

Motor & Fleet

By Roxanne Libatique

A new survey by Australian insurer Youi has revealed changing travel habits as cost-of-living pressures influence how Australians approach road trips.

The study, which polled more than 2,000 participants, found that over one-third have reduced their road trip frequency in the past year, while 25% are opting for destinations closer to home. 

Road trips remain a preferred holiday option in Australia

Despite these shifts, road trips remain a preferred holiday option, with more than half of respondents planning to take one within the next few months.

Key reasons cited include:

  • the flexibility and freedom of road travel (56%)
  • the opportunity to explore domestic locations (52%)
  • spending quality time with family and friends (48%)

Additionally, 35% noted that road trips are a more cost-effective alternative to international travel

Promoting domestic adventures 

To support Australians in continuing their exploration of the country, Youi has partnered with outdoor booking platform Hipcamp to launch “Youi’s Great Australian Road Trip.”

The initiative provides curated travel itineraries that highlight diverse destinations across Australia. 

Youi’s head of product vehicle, Marni Jackson, observed that economic pressures are changing how people plan their holidays. 

“As the cost of living continues to rise, we’re seeing this impact the way that Aussies approach holidays and travel. While many are looking for ways to travel more affordably, the desire to explore the open road remains strong,” she said.

Jackson advised travellers to prepare thoroughly before setting out, including budgeting carefully, planning ahead, and conducting vehicle maintenance to avoid unnecessary expenses.

Unexpected challenges during trips

The survey also revealed that three-quarters of travellers faced unexpected challenges during their trips over the past year.

Common issues included:

  • flat tyres (25%)
  • unplanned road closures (25%)
  • severe weather (23%)

The respondents reported spending an average of $1,108 on their most recent road trip, with fuel (74%) and accommodation (56%) being the most significant expenses.

Separate research by PassportCard highlighted risks associated with domestic travel, identifying Sydney (41%), Brisbane (35%), and Perth (22%) as the most challenging destinations due to theft, medical incidents, and delays. 

The study also revealed that many Australians underestimate the risks of domestic travel and may not consider travel insurance necessary for trips within the country. 

Exploring Australia’s unique destinations 

According to Hipcamp global social media lead Brooke Wood, Australians continue to seek out both iconic landmarks and lesser-known destinations. 

“Australia is home to world-class landscapes, including destinations such as Uluru-Kata Tjuta National Park, the Great Barrier Reef, and Ningaloo Coast. Beyond these iconic destinations, Australia also has plenty of hidden gems waiting to be explored,” she said.

She noted that curated itineraries can help travellers streamline their plans, allowing them to make the most of their time and budget while exploring. 

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