Where Aussies Splurge: Why Luxury Stays Are Beating Business Class

Accommodation Over Altitude

When it comes to spending big on holidays, Australians are turning their attention from the sky to the ground. According to new research by TravelInsurance.com.au, Aussie travellers are more likely to splurge on premium accommodation than on upgraded flights. The survey, which gathered insights from over 1,000 travellers across the country, revealed that 22% prioritise luxury hotels and private villas as the top area for spending extra while travelling.

Rather than sinking funds into a few hours of luxury in the air, Australians are choosing five-star stays and unforgettable on-ground experiences. The trend signals a clear shift in value—from fleeting comfort to enduring memories.

Experiences Matter More Than Extra Legroom

While comfort in transit is still appreciated, the survey shows that just 9% of Australians are willing to splurge on business class or other flight upgrades. Instead, travellers are leaning into immersive experiences and indulgences that leave a lasting impression.

Private tours (16%), fine dining (14%), and bucket-list activities like hot air ballooning or helicopter rides (10%) are now among the top spending choices. With many Australians willing to spend up to $500 more on what they value most in a holiday, the focus is clearly on quality time, not just quality seats.

Generational Spending Trends

The survey also shines a spotlight on how different generations choose to splash their travel cash. Gen X leads the way in valuing luxurious accommodation, with 30% marking it as their top indulgence. Baby Boomers are more likely to invest in upgraded flights, while Gen Z is all about the experience—favouring private tours (20%) and adrenaline-filled activities (17%).

These generational preferences reflect broader shifts in how Australians approach travel—seeking authenticity, comfort, and memorable moments.

Smart Spending in the Age of Rising Costs

TravelInsurance.com.au      Shaun McGowan notes that with rising cost-of-living concerns, Australians are becoming more discerning about their travel budgets. Rather than paying thousands for premium air travel, they're choosing to get more value on the ground—where the memories last longer.

One in five respondents (21%) still say they never splurge at all and prefer to travel on a strict budget, no matter the destination. But for the rest, the growing consensus is clear: premium beds over premium boarding passes.

Contact Information

TravelInsurance
Website: https://www.travelinsurance.com.au

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