As the cost-of-living crisis continues to bite, Australians are prioritising travel over presents this Christmas, new data from the Tourism & Transport Forum (TTF) has revealed.
The study found that inflationary pressures have affected over two thirds (68%) of Australians’ spending choices this festive season, with 31% spending “significantly less” on presents as a result.
Travel is still ranking high on the priority list however, with less than half (44%) saying rising living expenses have influenced their decision to travel to be with family and/or friends for the festive season.
In fact, 26% of Australians ranked ‘holidays and travel’ as their top non-essential expense – a 1% from Christmas in 2023.
“As we approach the end of the year, cost-of-living pressures have not eased, and continue to prey on Australian’s Christmas plans. This year, most Aussies have indicated they’re cutting back on Christmas spending and are entering the festive season with tighter budgets,” said TTF CEO, Margy Osmond.
“More than a quarter of Australians deem travel a non-negotiable spend over the Christmas season, ranking ‘holidays and travel’ as their number one non-essential expense. An expense they will continue to prioritise, even as pricing and pressures continue to increase.”
“Amidst financial pressures, we’re choosing to prioritise time with family and friends, over excessive material spending,” she added.
Cost of living has affected the travel plans of under 45s the most, with more than half (51%) saying their decision to travel to be with family and friends over Christmas has been impacted, compared to 38% of those over 45.
