Australians are still prioritising holidays and airline spend despite ongoing cost-of-living concerns.
Latest data shows that while travel spending softened slightly over the most recent holiday period, Australians are still continuing to prioritise travel overall.
The findings are contained within the latest spotlight from Experian’s Business Pulse Monthly (March 2026).
Key findings include:
# During the December-January holiday period, total overseas and domestic travel spending was down 3.3% year-on-year.
# Despite this, Australia’s travel Spend Index remained significantly elevated, reaching 266% for domestic airlines.
# International airlines spend was even stronger, with the Spend Index reaching 311%.
# The strongest growth in airline spend was seen among the 55+ and 25–44 age groups.
The analysis also suggests Australians are reshaping discretionary budgets toward smaller feel‑good purchases and experiences amid ongoing cost‑of‑living pressure, with households trading down in ticket size rather than switching discretionary spend off entirely.
Accessible indulgences include such items as prestige beauty, fragrance, treat‑oriented food and beverage, and experience‑led spend.
Alongside these shifts in discretionary spend, Australians continue to balance traditional credit options with instalment products such as Buy Now Pay Later services, which may reflect a preference for flexibility when managing budgets under pressure.
“What we’re seeing is a reshaping of discretionary behaviour,” said Louis Tsang, Head of Analytics Consulting & Insights at Experian A/NZ.
“When budgets are under pressure, many households defer larger purchases and redirect towards smaller, more manageable indulgences that still deliver emotional value.
“Combining spend trends with internal customer data can help organisations test assumptions, refine segmentation and make more informed decisions about range, pricing and offers.”
Read the full March Experian Business Pulse Monthly here.
