As cost of living pressures continue to impact household budgets across Australia, discretionary spending is tightening, with holidays often among the first expenses to go.
But while many Australians are postponing or reducing traditional leisure travel, they are not stepping away from travel altogether.
Instead, trips centred on visiting family and friends, or marking major life milestones such as birthdays and weddings, are holding firm.
Visiting Friends and Relatives (VFR) travel already accounts for around 48% of domestic visitation in Australia – with an even greater share in regional areas.
Long recognised as one of the most resilient segments of the visitor economy, VFR travel is once again proving its stability during economic uncertainty.
Elisa Zentveld, Federation University Professor and a leading expert on VFR travel and tourism, said the current environment highlighted the enduring importance of this segment.
“VFR travel has always been driven by connection, not discretionary spending,” she said.
“This makes it far more resilient during periods of economic pressure, because people are less willing to cancel trips that involve family obligations or maintaining important relationships.”
For tourism and hospitality businesses, this stability also presents an opportunity to recalibrate their approach to attracting this market.
“People visiting family and friends still need places to stay, meals to share and spaces to gather,” Professor Zentveld said.
“Operators who understand this audience – and market accordingly – are better positioned to weather periods of economic uncertainty.”
Professor Zentveld said this could include retargeting their marketing locally, developing group-friendly experiences or products that make it easier for locals to host and entertain visiting friends and relatives.
“Locals are central to VFR travel,” she said.
“By engaging communities and encouraging them to champion their region, tourism operators can tap into a consistent and reliable source of visitation.”
