More then 1/2 of Aussies are going on holidays within the next 12 months, despite the crushing cost of living

If you think your social media feed has been flooded with holiday pictures now, buckle up because almost three out of five Australians have booked a holiday within the next 12 months, so there will undoubtedly be more holiday snaps to come.

According to recent research by Compare the Market, 57.2% of adult Australians said they will be on vacation in the next 12 months (to July 2024).*

Meanwhile, just over a quarter (25.9%) said they can't afford to travel in the next year, and 9.9% said they have other priorities coming up preventing them from travelling.

Two thirds of Boomers are spending up big and are the most likely age group to be on holidays within the next 12 months.

This was followed by Gen X (56.5%), Millennials (52%) then Zoomers (48.2%).

Compare the Market's Head of Travel Insurance, Warren Duke said it's great to see so many people travelling without having to be concerned about travel bans and wearing masks on plane and other travel restrictions..

"Millions of Australians have managed to afford to go on holidays whilst juggling increased costs and interest rate rises," Mr Duke said.

"While inflation has depleted many families' spare cash flow, this data goes to show that there are many Australians who have managed to pull through with some stellar budgeting."

Mr Duke said there are a number of ways people are managing to save whilst being on their vacation.

"Some of the most popular ways people are managing to save on their holiday include eating home-cooked meals, cutting back on souvenirs and renting cheaper accommodation.

"Instead of going out to a fancy restaurant every night, maybe you could choose to purchase a few things at the local supermarket and eat at your accommodation.

"If you do plan to go out for dinner, it's important to do your research and shop around to find the best prices.

"For example, a Compare the Market traveller who recently visited Greece said the price difference in gyros ranged from 3 Euro to 16 Euro – having taste-tested both gyros, she said the cheaper one actually tasted better."

Zoomers and Millennials were found to be hustling harder to save money on their holidays.

They were more likely to save on food, accommodation, transport and attractions than any other age group.

Meanwhile, Boomers and Gen X were more likely to save through ditching souvenirs and staying with friends – but were also most likely to not cut down on any costs while on holidays.

Mr Duke said it was surprising to see that just over a quarter of adult Australians won't be cutting back on holiday-associated costs in any way.

"One cost that should never be cut back is travel insurance.

"While you might be saving an initial cost, skimping on travel insurance could land you in hot water in the long run, so it's best to factor it into the budget.

"If you lose your suitcase, your flight gets delayed or cancelled, you’re involved in a car accident, have an unforeseen medical expense or get pickpocketed – you want to make sure you've got coverage.

"Travel insurance is the most important cost that shouldn't be overlooked or bypassed to afford a holiday."

A number of comparison websites like Compare the Market can help sightseers save money and help them find the travel insurance that's suited to their needs and circumstances.

*Survey of 1,004 Australian adults, conducted in September 2023.

 Natasha Innes, Media and Communications Advisor, natasha.innes@comparethemarket.com.au

 Compare the Market, comparethemarket.com.au