Finder’s Travel Inflation Report: International trips cost 33% more
The rising cost of living is impacting all aspects of Aussie life, including travel, according to a new Finder report.
Finder's Travel Inflation Report, which combines data from Finder's Travel Insurance Quote Database and the Australian Bureau of Statistics (ABS), has uncovered how the pandemic and the cost of living crisis is impacting Australian travel habits.
Domestic holidays are 19% more expensive than they were pre-COVID, while international holidays now cost a staggering 33% more, according to the report.
Gary Ross Hunter, insurance expert at Finder, said despite rising costs, plenty of Aussies are still keen to travel.
"The cost of both international and domestic travel is certainly putting more of a dent in Aussie wallets compared to pre-COVID.
"After a period of take-off in the travel industry post-pandemic – due to pent-up demand and staff shortages – our report shows travel inflation has actually started to cool.
"With travel activity still below pre-pandemic levels but cost-of-living pressures really kicking in, it remains to be seen how 2024 will play out for travellers."
Finder's Travel Inflation Report reveals Indonesia is the top overseas travel destination in 2023, followed by the USA and UK.
Top 10 overseas destinations for Australians
| 2023 January–November | 2022 January–December | 2019 January–December |
|---|---|---|
| 1. Indonesia (including Bali) | 1. Indonesia (including Bali) | 1. USA |
| 2. USA | 2. USA | 2. Indonesia (including Bali) |
| 3. UK | 3. UK | 3. UK |
| 4. Italy | 4. Thailand | 4. Thailand |
| 5. Thailand | 5. France | 5. New Zealand |
| 6. France | 6. New Zealand | 6. Japan |
| 7. New Zealand | 7. Italy | 7. France |
| 8. Japan | 8. Singapore | 8. Singapore |
| 9. Singapore | 9. Fiji | 9. Canada |
| 10. Vietnam | 10. Germany | 10. Italy |
This comes as a new Finder survey of 1,056 respondents found a whopping 59% of Australians have travelled without taking out travel insurance.
That's equivalent to nearly 12 million travellers taking the risk.
The research found 2 in 5 (40%) didn't take out travel insurance because it was too expensive.
Hunter warned Australians not to skimp on travel insurance.
"If you can't afford to insure your international trip, you can't afford to take the holiday.
"A medical mishap on holiday, especially when overseas, can end up costing you tens of thousands of dollars without the proper cover. The cost of a travel insurance policy is a small price to pay for peace of mind.
"If you're planning on doing anything that'll spike your adrenaline, like skiing or skydiving, for example, there's a good chance you'll need to add an extra inclusion on your policy.
"Travel insurance is super customisable so it pays to shop around for a policy that best suits your needs," Hunter said.
| Have you not taken out travel insurance for any of the following reasons? | |
|---|---|
| It's too expensive | 40% |
| I don't know what it covers | 14% |
| I don't think anything bad will happen to me | 13% |
| It's too complicated to organise | 8% |
| I always take out travel insurance when travelling | 32% |
| I already have travel insurance on my credit card | 9% |
| Source: Finder survey of 1,056 respondents, November 2023 |
See Finder's Travel inflation report for December 2023 here.