Almost nine in 10 (87 per cent) of Australians plan to travel either internationally or domestically in 2023, according to research commissioned by Southern Cross Travel Insurance (SCTI).
SCTI’s The Future of Travel 2023 research also found that 83 per cent of Australians who plan to travel in the next year expect to reduce travel costs, as a result of the rising cost of living.
Key areas in which those planning to travel in the next year were looking to reduce costs were: booking cheaper or budget accommodation (39 per cent); taking fewer trips overall (37 per cent); and taking a shorter trip (36 per cent).
One in 10 Australians surveyed also said that they won’t purchase travel insurance, as a way of saving money in light of financial pressures – with millennials being twice as likely to abstain from purchasing any compared with baby boomers.
The popularity of budget accommodation has risen in the past year, having declined during the coronavirus pandemic – suggesting that people are less influenced by anxiety about Covid-19 than they were.
Money worries are impacting travel enthusiasm
Over a third (37 per cent) of Australians surveyed as part of the report also said that they are less likely to travel between states over the next 12 months, due to the rising cost of living, while almost half (48 per cent) said that they were discouraged from travelling overseas in the coming year for the same reason.
“It’s unsurprising, following the lockdowns, that Australians still have a huge appetite to get out there and see the world,” says Jo McCauley, CEO at SCTI. “But the rising cost of living is impacting Australians across all areas and travel is no exception, so it’s understandable Australians will be looking for ways to cut costs while still trying to make those trips happen.”
McCauley added: “We know that most Australians consider travel insurance as a high priority for overseas trips with 76 per cent rating it a high priority for international travel but only 49 per cent feel the same way for domestic travel. We’d encourage everyone to ensure they take out travel insurance regardless of where they’re travelling as it could end up saving you significantly in the case of the unexpected.”
McCauley spoke to ITIJ about her company’s post-pandemic plans in the March 2023 issue.