Caffeine Shock Abroad: Why Your Holiday Brew Could Cost More Than a Meal

 New Travel Expense Brewing for Aussies

Think you've budgeted everything for your next overseas trip? Think again. While most Australian travellers plan carefully for flights, accommodation, and insurance, there’s a new cost quietly creeping into travel budgets — coffee. New research from TravelInsurance.com.au reveals that one in four Aussies have shelled out more than $10 for a single cup of coffee while abroad.

It’s not just a pricey habit — it’s what the experts are calling the “caffeine tax,” and it’s taking many holidaymakers by surprise.

A Latte to Lose: Just How Much Are We Spending?

The survey, which asked Australian travellers about their most recent overseas holiday in the past year, found that:

• 25% paid more than $10 for one coffee

• 15% spent up to $15

• 7% splurged up to $20

• 3% exceeded $20 on a single brew

With international coffee bean prices rising and foreign exchange rates often working against the Aussie dollar, travellers are finding themselves paying steep prices in tourist hotspots.

Millennials Brew Big While Boomers Hold Back

Age also plays a significant role in travel coffee spending. Millennials top the list, with 65% admitting to paying more than $10 for coffee while overseas. Gen Z follows closely behind at 63%. Meanwhile, Gen X and Baby Boomers are more conservative, with only 43% and 36% respectively indulging in luxury-priced lattes.

Interestingly, 19% of Australians say they skip coffee altogether when travelling — a savvy (or caffeine-free) way to avoid the shock.

Where in the World Is Coffee the Costliest?

If you're planning to travel soon and can't function without your daily flat white, be warned — these five destinations were named as the most expensive places to grab a coffee:

1. London

2. New Zealand

3. Singapore

4. Los Angeles

5. Bali/Indonesia

Whether it’s sipping oat milk cappuccinos in Shoreditch or grabbing a quick espresso in Seminyak, Aussie travellers are increasingly finding their caffeine cravings come with a price tag.

Keep the Brew, Skip the Burn

TravelInsurance.com.au CEO Shaun McGowan notes that while the global price of coffee beans is partly to blame, tourist pricing and exchange rates are compounding the hit. However, not all hope (or beans) is lost. According to the same survey, 32% of Aussies have never paid more than $10 for coffee abroad — proving it’s still possible to stay under budget if you plan ahead and avoid obvious tourist traps.

Plan Your Brew Budget Before You Board

If you’re a traveller who can’t start the day without a shot of espresso, it might be time to include “daily coffee cost” in your itinerary planning. Look for local cafés off the beaten path and consider swapping your daily barista brew for hotel or apartment coffee a few times during your stay.

For more information on budgeting and travel tips, visit: www.travelinsurance.com.au

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