The rising cost of living can significantly impact people’s travel plans, and that’s more apparent than ever as Compare the Market reveals new research. The travel insurance comparison company surveyed more than 1,000 Australians to learn about their travel intentions, how the cost of living is affecting their travel plans, what they’ve budgeted for their next holiday, and how much they overspent on the last one.
On average, 40.4% of Australians blew their travel budget by an average of AUD$11,518 on their last holiday. The survey revealed a clear trend where the younger generations were more likely to overspend than older travellers, with 54.0% of Australians aged 18-24 overspending, compared to just 29% of those aged 65+.
| Budget | Australia | 18-24 | 25-34 | 35-44 | 45-54 | 55-64 | 65+ |
| Overspent | 40.4% | 54.0% | 51.2% | 49.7% | 35.8% | 28.3% | 29.0% |
| Not overspent | 59.6% | 46.0% | 48.8% | 50.3% | 64.2% | 71.7% | 71.0% |
When it comes to future travel plans, 34.2% of Australians plan on travelling internationally in the next 12 months, while 32.6% plan on travelling domestically. Only 15.6% said they don’t plan on travelling at all in the next year, while 17.6% were unsure.
Younger Australians were about twice as keen to travel internationally than domestically, with 44.2% wanting to go overseas and just 23.0% wanting to explore Australia.
The survey also asked what Australians were budgeting for their next holiday. On average, Aussie holidaymakers were budgeting $12,758. The Northern Territory, Tasmania and ACT had the highest average at $20,813, while South Australians had the smallest future holiday budget at $9,710 on average.
Many Australians were having to adjust their travel plans in face of the cost of living, with only a quarter saying their plans were not impacted. The most common adjustment Australians made was to travel less frequently (33.2%), followed by choosing budget-friendly accommodation (26.3%). The responses are listed below:
- Travel less frequently – 33.2%
- Choose cheaper/lower quality accommodation – 26.3%
- Spend less on leisure activities – 24.3%
- Travel to domestic locations rather than international destinations – 22.7%
- Spend less on food – 20.8%
- Seek cheaper modes of transportation – 20.0%
- Travel with friends and/or family to share the budget – 12.6%
- Take a longer route with a lower cost – 8.5%
- Stop all travel plans – 8.3%
Executive General Manager Adrian Taylor urged anyone planning a holiday to compare travel insurance options first to save money on cover, rather than travelling without it.
“Travel insurance is so crucial to have, but not all policies are the same – or cost the same. It can cover cost of medical care overseas, lost or stolen belongings and cash, cost of travel delays and cancellations and more – depending on what’s in your policy. If you’re feeling the squeeze and are planning a holiday, comparing travel insurance can help you save money on cover while still being prepared in case the worst were to occur on your trip,” Mr Taylor explained.
“It only takes a few minutes to compare options online. Australians can use Compare the Market to compare different policies based on insured events, coverage limits, exclusions and price with ease. Given how expensive things can be when something goes wrong on a holiday, travel insurance is a vital safety net – one you can potentially save money on by finding a cheaper option.
“It’s crucial to review exactly what’s covered and to go through the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for details before you buy.”
To find out more about the survey and see the results for America and Canada, visit: https://www.comparethemarket.com.au/travel-insurance/features/holiday-spending-habits/
Compare the Market commissioned PureProfile to survey 1,012 Australian adults in a demographically representative survey for each nation in February 2025.
For interviews and more information, please contact:
James McCay | +61 450 930 374 | [email protected]
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
