New research reveals generational divide when it comes to cost-of-living impacts on Aussie travel choices

Date: 16 Feb 2025 by Southern Cross Travel Insurance

• New research reveals that nearly half (45%) of Aussies aged 18 to 44 years agree that buying a home is out of reach for them, and so they are choosing to spend more on travel and other experiences.
• Nearly two in five (38%) Aussie parents aged 45 years and above are spending less on travel because they are planning to leave some inheritance for their children or grandchildren to help them afford a home or they have less money for travel as they have already supported them financially.
• Those living in NSW are more likely than those living in Queensland to agree that they are spending less on travel than they would like, to make sure they leave some inheritance for their children or grandchildren to be able to afford a home (48% compared to 32%).

New research released today by Southern Cross Travel Insurance (SCTI) reveals how the cost-of-living is driving a generational divide when it comes to travel choices.

The Future of Travel 2025 report found that almost half (45%) of Australian adults, aged 18 to 44, are ditching the “Aussie dream” of home ownership, choosing to prioritise spending their savings on travel experiences. 

Meanwhile nearly two in five (38%) parents, aged 45 years and above, are sacrificing their own travel plans to prioritise leaving an inheritance for their children and grandchildren, with 36%  admitting they have already provided financial support to help them buy a house leaving them with less in the bank for travel.

“We know that the cost-of-living and housing crises are having significant impacts on Australians, but what our research reveals is an interesting contradiction when it comes to analysing the  priorities of Aussies by generation,” said Jo McCauley, CEO at SCTI.

“The younger generations seem to be embodying the ‘she’ll be right’ attitude, comfortable to cut their losses when it comes to the housing market in order to seek adventure. Whereas their parents  are doing the exact opposite in the hopes of saving to contribute to their childrens’ housing dreams – a show of sacrifice and resilience by the older generations.

“Another fascinating insight is that the older generations living in NSW are more likely than those living in Queensland to agree to this sacrifice (48% compared to 32%), reflecting the disparity of the cost of housing in each state.”

The overall travel trends unearthed in The Future of Travel 2025 research report illustrate this decrease in propensity to travel when you look at the behaviour of Aussies in 2024.

While at the end of last year, the number of Aussies travelling remained consistent compared to earlier in 2024, there was a drop in the number of trips taken on average across intrastate and  interstate travel. 

An average of 2.4 intrastate trips were taken in the past 12 months, compared to 2.8 in January 2024. An average of 1.8 interstate trips occurred within this same period, compared to 2.1. 

However, when looking ahead, 91% of Australians have indicated that they are planning to travel in the next 12 months, with Gen Z and Millennials leading the charge at 59% and 61% respectively. This is compared to Gen X at 43% and Baby Boomers at 41%.

The Future of Travel 2025 research took place in November 2024 and was conducted by YouGov. A nationally representative sample of 1,003 Australians aged 18 years and above took part in the online survey.

For more information, please visit: www.scti.com.au