Holidays halted: 7.5 million Australians priced out of overseas travel
A growing number of Australians have been priced out of international travel, according to new research by Finder.
A Finder survey of 1,079 respondents revealed travelling abroad has become unaffordable for 37% of Australians – equivalent to 7.5 million people.
The research found travelling overseas is almost out of reach for 23%.
James Martin, travel insurance expert at Finder, said travel is a luxury many cannot justify right now.
"The rising cost of living is impacting everything from groceries to petrol, and flights are no exception.
"Discretionary spending is taking a back seat as many look for ways to cut back."
There were 1,324,360 overseas departures in March – a monthly increase of 255,950 trips, and a yearly increase of 989,120 trips, according to ABS statistics.
However, February saw 1,068,410 departures, which was a monthly decrease of 308,440 trips.
Between 2017 and 2018, the average flight from Melbourne to London was sitting at $1,412 – this flight now sits at an average of $2,677 – more than double what it was.
Martin said if travelling is a priority for you, it needs to be in the budget.
"That way you can plan for the large expense even if it's 5 years down the road.
"Book in advance, travel off-peak and keep tabs for airfare sales to secure the cheapest international flights.
"Using banked-up reward points and travelling domestically are great ways to save money."
Just 37% of Australians say they would take out an insurance policy if they were to travel overseas. This includes 8% who are already insured through their credit card.
Martin urged Aussies not to skimp on insurance.
"If you can't afford to insure your trip, you can't afford to take the holiday.
"It's best to organise your travel cover as soon as possible after you book your trip," Martin said.
| Has the cost of international travel become prohibitive for you? | |
|---|---|
| No | 40% |
| Yes | 37% |
| No, but it's close | 23% |
| Source: Finder survey of 1,079 Australians April 2023 |
| Finder Travel Insurance Awards 2023 | |
|---|---|
| Best Travel Insurance – Comprehensive | Southern Cross Travel Insurance won the 2023 comprehensive award because it goes further than the majority of insurers. It scored highly for COVID benefits, cancellation fees, luggage damage cover and more. It's also competitive on price compared to the other 28 international policies we analysed. |
| Best Travel Insurance – Value | Fast Cover Travel Insurance won the 2023 value award because it's cheaper on average than the other 27 international policies we analysed. It covers you for the essentials including COVID, travel delay and luggage delay. |
| Best Travel Insurance – Seniors | Southern Cross won the 2023 senior travel insurance award because of its average price and benefits. It scored highly for its age limit cap, COVID benefits, cancellation fees and more. |
| Best Travel Insurance – Domestic | InsureandGo Travel Insurance is the 2023 domestic travel winner. Out of the 23 domestic policies we analysed, it scored highly for price, cancellation cover, rental car excess cover and more. |
For more information on Finder's Travel Insurance Awards for 2023, go to https://www.finder.com.au/finder-awards/product/travel-insurance-2023.