Despite the rising cost of living, many Australians still overspend on their holidays by over A$10,000.
According to Compare the Market research, 40.4% of Australians reported overspending on their last holiday by an average of $11,518 on their last holiday.
Younger Australians are the most likely to overspend, with 54% of 18-24-year-olds overspending compared to 29% of those aged 65 or older.
Young Australians are also more likely to travel overseas, with 44.2% wanting to travel internationally compared to 23% wanting to travel domestically.
In comparison, 34.2% of all Australians plan on travelling internationally in the next 12 months, while 32.6% plan to travel domestically, 15.6% plan to not travel at all and 17.6% are unsure.
Of those budgeting for a holiday, Australians planned to set aside $12,758 for travels on average.
In comparison, Americans had an average budget of $26,784 and Canadians had a budget of $17.158.
In Australia, those from the Northern Territory, Tasmania and the ACT had the largest budgets of $20,813, and South Australians had the smallest average budget of $9,710.
Many Australians have been adjusting their travel plans to save money, with 33.2% planning to travel less frequently and 26.3% choosing budget-friendly accommodation. Only 8.3% said they would stop all travel plans.
Compare the Market executive general manager Adrian Taylor suggested comparing travel insurance policies as a means to save money.
“Travel insurance is so crucial to have, but not all policies are the same – or cost the same,” Taylor said.
“It can cover cost of medical care overseas, lost or stolen belongings and cash, cost of travel delays and cancellations and more – depending on what’s in your policy.”
