New research reveals that Aussie travellers are more likely to splurge on luxury accommodation than on flight upgrades.
The nationally representative survey of more than 1,000 Australian travellers asked which part of their holiday they’re most likely to spend more on and how much extra they’d be willing to pay.
According to the survey by TravelInsurance.com.au, the most popular choice was premium accommodation, including five-star hotels and private villas, with 22% saying that’s where they’d happily invest more.
Overall, Australians say they’re willing to spend up to $500 more on the part of their holiday they value most.
The next most common indulgences were private tours (16%), fine dining (14%) and once-in-a-lifetime experiences like hot air ballooning or helicopter rides (10%).
Just nine per cent said they’d splurge on business class or flight upgrades, while even fewer would spend on designer shopping (6%) or private transport (2%).
Shaun McGowan, CEO of TravelInsurance.com.au, says Aussies prefer to splurge on travel experiences that leave lasting impressions.
“With cost-of-living pressures still top of mind for travellers, they’re being more selective about what they splurge on,” he added.
“Most prefer to spend on parts of the trip they’ll remember, like premium accommodation or unique experiences, rather than a few hours in a fancy seat on the plane.
“Business class upgrades can cost thousands for a short-lived benefit. Many travellers are realising that money goes further on the ground – whether it’s a few extra nights in a nicer hotel or an experience you can’t get anywhere else.”
One in five Aussie travellers (21%) say they never splurge and prefer to travel on a budget: no matter the destination.
The survey also revealed clear generational trends in spending habits:
# Gen X are the most likely to splurge on premium accommodation, with 30% naming it as their top travel indulgence.
# Baby Boomers are more inclined to spend on business class or flight upgrades (13%).
# Gen Z are the most experience-driven — with 20% saying they’d splurge on private tours and 17% on activities like hot air ballooning or helicopter rides.
