While cost-of-living pressure are dampening Australians’ enthusiasm for travel, it isn’t stopping them from going.
New research from Redion’s 2026 Holiday Barometer, a global study of 26,000 respondents across 26 countries, has found that while many Australian travellers may be feeling the pinch of inflation, they still plan to spend on holiday.
The research found that 88 per cent of Australians say inflation and high prices are impacting their enthusiasm for travel.
Despite this, average holiday budgets remain substantial with Aussies spending an average of $5,100 on their trip and 46 per cent are spending more than $4,200.
Just 39 per cent say they are not planning to travel this year at all, which is identical to 2025, suggesting that while the mood is cautious, cost pressures haven’t translated into a pullback in demand.
“There’s an interesting point in the data between financial anxiety and the refusal to sacrifice travel altogether,” says Justin Sebire, CEO of Redion in Australia and New Zealand.
“Australians are telling us prices are a concern for them, but they are still choosing to spend on their holiday regardless.”
The research shows that Australians are becoming deliberate about where their money goes, with value and protecting what they’ve already spent now front of mind from the initial itinerary right through to the trip itself.
Globally, travellers are more than twice as likely to expect their holiday budget to go up this year as down, despite cost-of-living pressures.
“Building on the record levels seen last year, the desire to travel remains strong and undiminished, despite tougher trade-offs and the cost of living remaining a top global concern,” says Virginie Babinet, CEO Travel Insurance & Assistance, Redion Group.
What this means for Aussie travellers:
- Look for value, not just the lowest price. The best deal is the one that still delivers the trip you wanted, with flexibility if plans change.
- Protect spend early with appropriate cover. With an average $5,100 on the line, it’s worth safeguarding your investment against disruption before you book, not after.
- Decide what matters most. Work out which parts of the trip are worth spending on, whether that’s flights, accommodation or experiences, and where you can trim without losing the point of the holiday.
- Build in a buffer. Set aside a little extra for unexpected costs so a surprise expense doesn’t turn into holiday debt after you get home.
