Australians are feeling the squeeze of rising living costs, but one thing many still refuse to give up is travel.
New research from Wise suggests international holidays are increasingly being viewed less as a luxury and more as an emotional priority, even as travellers become more cautious about safety, flexibility and spending.
The research found that 79% of Australians are still planning an overseas holiday within the next 12 months, while more than half (53%) say they’ll travel “no matter the cost.”
At the same time, nearly three-quarters of Australians say the rising cost of living is affecting their ability to afford travel, and 87% worry the cost of their next holiday could spiral out of control.
For the travel industry, the data paint a fascinating picture: Australians may be spending more carefully, but they’re still deeply emotionally invested in travel experiences.
Australians still refuse to give up travel
Despite economic uncertainty and rising travel costs, demand for international travel remains remarkably resilient. According to the research, only 7% of Australians say they are not planning any international leisure travel over the next 12 months.
Instead, travellers are adapting how they book and budget. The majority of Australians surveyed said they are now actively trying to save money on travel by:
- booking flights and accommodation earlier
- travelling during off-peak periods
- setting stricter spending limits while away
- choosing destinations perceived as safer or more stable
Safety has also become a growing priority for travellers following ongoing geopolitical uncertainty, with 78% saying safety is now more important when planning a trip.
That trend could continue shaping destination choices throughout 2026, particularly for families travelling with children.
Travel is becoming emotional, not just practical
One of the more interesting takeaways from the data is how emotionally connected Australians feel to travel.
According to the research:
- 84% say travel is “one of the few things they look forward to”
- 75% say travel is a core part of who they are
- 75% say having a trip booked helps them get through day-to-day life
For younger travellers especially, travel is increasingly being framed as a form of escapism amid rising housing costs and broader financial pressures.
Almost half of Gen Z travellers and more than half of millennials surveyed agreed that with major financial goals feeling increasingly out of reach, they “may as well” spend money on travel instead.
For tourism boards, airlines and travel brands, that emotional connection is important because it suggests that travellers may respond more strongly to messaging focused on meaningful experiences, wellbeing, connection and memory-making rather than purely price-driven campaigns.
That may be especially relevant in the family travel space, where many parents increasingly prioritise experiences and quality time together over material purchases.
Safety, flexibility and value are reshaping travel decisions
While Australians are still travelling, they are becoming more strategic in how they plan trips.
The research found:
- 44% are choosing “safer” destinations
- 39% are booking more flexible flights and accommodation
- 34% are taking out more comprehensive travel insurance
- 27% are booking with more established providers
There also appears to be growing pressure among consumers to lock in trips before prices rise further, with more than half of respondents saying they feel urgency to book sooner rather than later.
For destinations and travel operators, trust and reassurance are increasingly becoming competitive advantages. Flexible booking policies, transparent pricing and clear communication around safety may continue playing a larger role in conversion decisions moving forward.
“Vacay Maths” is a thing
The research also highlighted a phenomenon Wise refers to as “Vacay Maths”, which is the tendency for spending to feel less real while travelling overseas.
Nearly half of Australians surveyed admitted foreign currency doesn’t always feel like “real money,” while 52% said they tend to spend in the moment and worry about the consequences later.
That behaviour is contributing to significant overspending. Wise estimates Australians collectively overspend by around $6.4 billion annually while travelling internationally.
Unexpected costs are also catching travellers off guard. The most common included:
- ATM fees
- foreign transaction charges
- inflated taxi fares
- tourist trap restaurants
Interestingly, 60% of travellers reported at least one spending regret from their last trip, with food, transport, accommodation and souvenirs among the most common.
What this means for the travel industry
The research highlights a shift that many in the travel industry are likely already noticing firsthand.
Australians may be more price-conscious than ever, but they are still prioritising travel emotionally, especially experiences that feel worthwhile, memorable and meaningful.
For travel brands, that could mean:
- focusing more on emotional storytelling
- highlighting value rather than simply low prices
- offering flexible booking options
- building trust through transparency
- positioning travel as an experience worth investing in
It may also explain why destinations perceived as safe, convenient and emotionally rewarding (like Japan, Bali and Fiji), continue performing strongly with Australian travellers.
As the travel industry moves through another period of economic uncertainty, the winners may not simply be the cheapest providers, but the ones that best understand why people still feel compelled to travel in the first place.
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