New research from Southern Cross Travel Insurance (SCTI) suggests that cost-of-living pressures are influencing how Australians prioritise travel.
Younger travellers are focusing on experiences over homeownership, while older Australians are adjusting their spending to provide financial support for their families.
SCTI’s Future of Travel 2025 report found that 45% of Australians aged 18 to 44 are opting to spend their savings on travel rather than pursuing homeownership.
Meanwhile, 38% of Australians aged 45 and older are cutting back on travel to ensure they can leave an inheritance for their children or grandchildren. Among this older group, 36% have already provided financial assistance to help their children purchase property, limiting their own discretionary travel funds.
SCTI CEO Jo McCauley noted that the findings reflect contrasting financial priorities across generations.
“The younger generations seem to be embodying the ‘she’ll be right’ attitude, comfortable to cut their losses when it comes to the housing market in order to seek adventure. Whereas their parents are doing the exact opposite in the hopes of saving to contribute to their children’s housing dreams – a show of sacrifice and resilience by the older generations,” she said.
The study also identified regional differences in financial decision-making related to travel. In New South Wales, 48% of older respondents indicated they were willing to forgo travel to help their children enter the housing market, compared to 32% in Queensland.
The findings suggest that housing affordability challenges vary by location and influence spending habits.
Despite financial concerns, Australians continue to prioritise overseas travel. Data from the Australian Bureau of Statistics shows that over 912,000 Australians returned from international trips in November 2024, a 7.4% increase from the same period in 2019. Popular destinations include Indonesia, which welcomed nearly 135,000 Australian visitors, as well as Japan and Thailand, where travel increased by 34% and 20%, respectively, since 2022.
However, Mozo’s research suggests that many Australians are taking a cost-first approach to travel insurance, potentially leaving themselves exposed to financial risks. The study analysed 166 travel insurance policies from 51 providers and surveyed 1,425 Australians about their insurance habits.
It found that 57% of travellers prioritise affordability over comprehensive coverage, while only 20% review their Product Disclosure Statement (PDS) in full before purchasing a policy.
The study also found that 13% of Australians travel without any insurance, while 14% rely on credit card coverage, which may include exclusions or limitations on claims.
Focusing on domestic travel, SCTI’s report found that Australians took an average of 2.4 intrastate trips over the past year, down from 2.8 in January 2024. Interstate travel also declined, with an average of 1.8 trips compared to 2.1 earlier in the year.
Despite the decline, 91% of Australians plan to travel in the next 12 months. Younger generations are driving this trend, with 59% of Gen Z and 61% of Millennials intending to travel, compared to 43% of Gen X and 41% of Baby Boomers.
