Australians are choosing to travel now and pay for years to come, as 17 per cent admit to booking a trip that they can’t afford.
According to Finder research, young Australians are more likely to book a holiday they can’t afford, with 35 per cent of Gen Zers saying they have either gone into debt or taken money from a family member to fund a holiday.
Finder travel expert Angus Kidman said while many Aussies were facing financial difficulties, some remain committed to travel, even as their budgets tightened.
“Ignoring financial reality can lead to serious consequences in the long run,” he said.
“Your post-holiday glow will quickly fade when you’re faced with substantial debt that can take years to clear.”
The research found 5 per cent of these of Australians went into debt so they could take a trip, while 5 per cent had to borrow money from family or friends so they could jet off.
A further 6 per cent of aspiring holiday-makers reluctantly had to cancel their plans due to affordability problems.
Mr Kidman said living beyond your means was a classic money mistake that often spiralled into bigger financial mistakes in the future.
Instead, he said travellers should be more realistic about their financial positions and the holidays that they could realistically afford.
“Look for cheaper ways to have that break, such as house swapping or staying with family in another city to save on accommodation costs,” Mr Kidman said.
Separate NAB research shows for the first time in 18 months that Aussies are feeling more on top of their spending although still cutting back on discretionary spending, including travel and eating out.
According to the big four bank’s figures, Aussies are now spending $445 a month on travel, down $33 from the second quarter.
NAB personal everyday banking executive Kylie Young said, on average, Australians were still saving about $300 each month or more than $3600 a year, a buffer that had helped weather the economic challenges.
But the biggest spending cuts may be behind us.
“After more than a year of budgeting being the hot topic around the dinner table, we may be seeing the first signs Australians are feeling in control of their finances again,” Ms Young said.
She said it was a glimmer of good news for businesses and households that were felling a little more optimistic about managing the cost of living.
“Australians are proving resilient, they’re looking for smarter ways to save and spend and, even though it’s early days, this may be an indication of a more ‘normal’ 2025,” Ms Young said.
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