AUSTRALIANS have saved $528 a month from cancelled, postponed or “slimmed down” travel in the first quarter of 2024, according to NAB’s latest Consumer Sentiment Survey.
The shredding of the travel budget is up by 39% on the same period last year, with the lion’s share of funds being diverted to cover everyday expenses such as paying down mortgages.
As a result, the report suggested European summer travel, overseas weddings and lavish interstate trips are now less likely to take place this year, as many Aussies look to bolster savings and make more budget bookings.
NAB believes that changes to travel plans have been made by around 45% of Aussies in the first three months of this year alone, with a cohort of youth-focused travel experiences likely to be hit the hardest by the country-wide belt-tightening.
Millennials have taken the largest knife to the travel budget in 2024, slicing away $743 a month to cover other costs.
This was followed by $645 a month for people aged between 50 and 64, $440 for 65 , but in a welcome reprieve for the youth market, only $329 for Gen Z.
Looking ahead, the study also predicted that one in four Australians are likely to reduce spend on travel in the next 12 months across both international and domestic trips.
“For some it might mean switching the Amalfi Coast for the Sunshine Coast, for others swapping an interstate break for a city staycation,” NAB Executive, Paul Riley, said.
“This is another example of the ‘loud budgeting’ trend we have seen emerge over recent months, where people are feeling more comfortable setting budget boundaries and telling friends and family,” he added. AB
