The Burrow
Jun 16, 2025
Going on a holiday can be a great time to take a break, but the rising cost of living can put a real dampener on people’s travel plans.
As experts in travel insurance comparison (which can help holidaymakers recuperate costs), we ran a survey of Australian, American and Canadian adults to ask about their travel spending and budget planning, and how that’s been impacted by the cost of living.
Join us as we fly through the results.
Despite rising costs, most people surveyed are still planning a holiday, whether it’s an international getaway or a local sightseeing break.
Of those surveyed, Australians had the greatest intent to be planning a holiday overall, with slightly more Australians wanting to go overseas rather than holiday closer to home. Less than a third (32.6%) of Australians said they were planning a domestic holiday, and 34.2% wanted to travel overseas.
Canadians surveyed had a bigger gap in destination intent, with 33.8% wishing to go overseas, while 29.9% planned on travelling within Canada.
America, on the other hand, was the least likely to be planning an international holiday. Only 13.6% of Americans surveyed planned on travelling overseas, while 39.8% were planning on domestic travel. Over a quarter of Americans surveyed said they were not planning a holiday – the highest of all three countries – while one in five Americans were unsure.
| Intent to take a holiday in the next 12 months | 🇦🇺 Australia | 🇺🇸 USA | 🇨🇦 Canada |
|---|---|---|---|
| Intention to travel domestically | 32.6% | 39.8% | 29.9% |
| Intention to travel internationally | 34.2% | 13.6% | 33.8% |
| Unsure | 17.6% | 20.4% | 21.6% |
| No travel plans | 15.6% | 26.2% | 14.7% |
The survey asked respondents how much they had planned to budget for their next holiday, while also asking how much they overspent on their most recent holiday.
Interestingly, despite Americans being the least likely to plan an international holiday, they had the biggest travel budgets for their next holiday. On average, Americans had a budget of AU$26,784 for their next holiday. Canada had the second-biggest at AU$17,158, while Australia had the smallest budget at AU$12,758.
As for how much they went over budget on their last holiday, Americans also had the biggest overspend at AU$29,665, followed by Canada at AU$16,571 and Australia at AU$11,518. America’s overspend was about $3,000 more than what they planned to spend next time, while Australia and Canada’s overspend was roughly what they planned on budgeting for their next holiday, suggesting people have reduced their travel budget after going so far beyond it previously.
When asked if they had to change their plans to save money, the most common single response from Americans was surprisingly that they haven’t been impacted, with 28.7% of respondents choosing that option. This accounted for 25.8% of Australian and 19.5% of Canadian respondents.
For those Americans who did feel an impact, the most common choice was to travel less frequently, which was the number one answer overall for Canada and Australia. Australians had the highest response rate for this option at 33.2%, followed by 30.0% of Canadians and 25.8% of Americans.
Beyond travelling less frequently, each nation had similar preferences for adapting their travel plans to the cost of living. Just over a quarter of Australians would choose cheaper and lower quality accommodation (26.3%), while 24.3% would spend less on activities.
In Canada and America, the next most common choice was to travel domestically rather than internationally (26.2% in Canada and 22.9% in the US). Of those surveyed, Canadians also preferred to choose a cheaper place to stay at 23.6%, while 21.8% of Americans would spend less on leisure activities.
| Travel plan impacts | 🇦🇺 Australia | 🇺🇸 USA | 🇨🇦 Canada |
|---|---|---|---|
| Travel less frequently | 33.2% | 25.8% | 30.0% |
| Choose cheaper/lower quality accommodation | 26.3% | 20.8% | 23.6% |
| Spend less on leisure activities (theme parks, paid attractions, etc.) | 24.3% | 21.8% | 22.1% |
| Travel to domestic rather than international destinations | 22.7% | 22.9% | 26.2% |
| Spend less on food | 20.8% | 18.4% | 18.9% |
| Seek cheaper transport modes (driving, public transport, etc.) | 20.0% | 19.3% | 22.2% |
| Travel with friends and/or family to share the holiday budget | 12.6% | 11.8% | 15.4% |
| Take a longer route with a lower cost | 8.5% | 7.1% | 11.5% |
| Stop all travelling plans | 8.3% | 9.8% | 11.0% |
| Travel plans unaffected | 25.8% | 28.7% | 19.5% |
N.B. Respondents could answer multiple options unless they chose “Travel plans unaffected”, so totals do not equal 100%. The option “Travel plans unaffected” was an exclusive option.
Executive General Manager Adrian Taylor urged anyone planning a holiday to compare travel insurance options first to see if it’s possible 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 potentially help you save money on cover while enabling you to still be 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 if something goes wrong on a holiday, travel insurance is a vital safety net – one you can potentially save money on by comparing and finding a cheaper, but still suitable, 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.”
Compare the Market commissioned PureProfile to survey 1,012 Australians, 1,010 Canadians and 1,012 American adults in February 2025.