With the holiday season upon us, 37% of Aussies say they still splurge when they travel despite the nation's cost of living woes, according to a new survey by Money.com.au.
However, a slightly higher number of people – two in five Aussies (41%) – prefer to stick to a strict budget while on holiday. The survey also found one in five Aussie travellers (23%) find a middle ground, choosing to splurge only on trips that are special occasions like milestone birthdays, destination weddings, or honeymoons.
Boomers are more likely to strictly stick to a budget (50%), while Millennials and Gen Z are more inclined to splurge on their holidays (39%).
Money.com.au’s Finance Expert, Sean Callery, says Aussies are equally divided when it comes to holiday spending:
"With nearly a third of Aussies spending up to a year saving for a trip, it’s perhaps not surprising that many people are able to maintain that financial discipline by sticking to a budget when they’re away,” he says. "On the flip side, many people want to push the boat out a little further, seeing vacations as a chance to escape daily routines, including financial restrictions.
"However, it's important to avoid overspending or going into troublesome debt for a holiday, or you could be paying for it, plus interest, long after the memories have faded.”
With this in mind, Money.com.au compared travel costs for savers and splurgers to popular overseas destinations to see how spending habits affect the price of a trip. The estimated costs are for a 10-day holiday. For savers, costs include economy flights, three-star accommodation, casual dining, low-cost activities and public transport.
For splurgers, they include premium economy flights, luxury accommodation, fine dining, private tours and premium transport.
Bali:
A 10-day trip to Bali can cost as little as $1642 for savers who opt for an economy flight, budget accommodation, local eats and affordable activities like beach days and hiking tours.
Meanwhile, splurgers flying in premium economy, staying in one of Bali’s luxury resorts and indulging in fine dining and exclusive activities (eg spa days) could spend up to $6014. That’s a difference of $4372 for a premium holiday to Bali compared to a budget trip.
New Zealand:
A 10-day trip to New Zealand can cost as little as $2852 for savers who fly economy, stay in a three-star hotel, dine at local restaurants and enjoy affordable activities like walking tours. On the flip side, splurgers staying in a high-end hotel and indulging in fine dining and premium activities like wine tours or whale-watching safaris could spend up to $7610.
This makes a premium holiday to New Zealand $4758 more expensive than a budget trip.
Fiji:
A 10-day trip to Fiji can start at just $2960 for savers who stick to economy flights, budget hotels, casual dining and affordable activities like beach visits and local markets. In contrast, splurgers might spend as much as $9959 by opting for premium flights, luxury resorts, fine dining and high-end experiences like snorkelling and island day cruises. That’s a $6999 difference between a budget getaway and an indulgent escape in paradise.
United Kingdom:
A 10-day trip to the UK can start at just $3990 for savers who choose budget-friendly accommodation, casual dining and affordable activities like walking tours and visiting museums. In contrast, splurgers could spend up to $10,684 by flying premium economy, staying in a luxury five-star hotel and indulging in fine dining and exclusive experiences like a private tour of Buckingham Palace.
That’s a $6694 difference between a frugal adventure and a lavish getaway in the UK.
Japan:
A 10-day trip to Japan can cost as little as $3911 for savers who fly economy, stay in budget-friendly accommodation and stick to casual dining, free or low-cost activities and public transport.
In contrast, splurgers might spend up to $8998 by staying in luxury hotels, indulging in fine dining and enjoying premium experiences like a Mount Fuji day tour or a samurai experience. This makes a premium holiday in Japan $5087 more expensive than a budget trip.
