Rising living costs are influencing Australian travel decisions, with many prioritising financial security while planning trips.
The Allianz Partners Travel Index, which surveyed 1,000 Australian adults, found that 71% plan to take at least one trip in the next 12 months. Among those choosing not to travel, 80% cited affordability as their primary reason for staying home.
For those who are travelling, relaxation and financial security are key priorities. The report found that 71% of respondents are planning holidays centred around resorts and wellness, with a strong focus on peace of mind. Insurance considerations were also a key factor in travel planning.
Separate findings from Zoom Travel Insurance suggested that younger Australians continue to prioritise travel despite economic challenges. The insurer’s survey of 500 young adults found that 72% still consider travel an essential aspect of their lifestyle, even as costs increase and the Australian dollar weakens.
Additional research from Southern Cross Travel Insurance (SCTI) highlighted differing travel priorities between generations. According to the insurer’s Future of Travel 2025 report, 45% of Australians aged 18 to 44 are prioritising travel over homeownership. In contrast, 38% of Australians aged 45 and older are cutting back on travel to provide financial support for family members.
The Allianz Partners Travel Index revealed that Australian travellers expect to spend between $5,000 and $10,000 per trip. Those in the 18-34 age bracket are almost twice as likely as travellers over 55 to spend upwards of $10,000, indicating a generational divide in discretionary spending priorities.
Travel insurance remains a significant consideration, with 82% of respondents stating they intend to purchase coverage. The most frequently cited concerns include:
The survey also indicated that women were more likely than men to report these concerns.
Australians are acquiring travel insurance through multiple sources, with 40% purchasing directly from insurers, 16% using travel websites, and 14% relying on coverage provided through credit cards. Additionally, those spending over $10,000 on travel were nearly 20% more likely to secure travel insurance than those budgeting under $5,000.
Chris McHugh (pictured), CEO of Allianz Partners Australia, noted that awareness around travel insurance is growing.
“It’s fantastic to see so many Australians rightly prioritising travel insurance when planning their travel,” he said.
He said younger travellers could benefit from financial safeguards.
“Although younger Australians are planning to spend the most on their travels, they also note as a key worry having insufficient cash while away. This highlights the importance of travel insurance for this cohort if something unexpected happens overseas,” McHugh said.
