Despite the cost of living pressures, Australians are determined to travel, with a surge in domestic tourism, passion-driven trips, and innovative workcations says Canvas8 Report.
Australia – According to a 26 December, 2024 report by global strategic insights practice Canvas8, while the cost of living continues to challenge households across the country, Australians are rethinking how they travel, prioritizing experiences that bring value and meaning. Research from Skyscanner’s 2025 behavioural and industry trend report reveals that the demand for budget-friendly travel is rising, with more Australians than ever looking to balance work and play through workcations and local getaways.
The report, Why Aussies find ways to travel even on a tight budget, was authored by Australian writer Heidi Bain and features expert comment from Donna Berry, head of commercial revenue at Currumbin Wildlife Sanctuary on Queensland’s Gold Coast, and Brendon Matthews, the owner of Ballina Heritage Inn on New South Wales’ far north coast. The Canvas8 experts found that, despite financial challenges, Aussies are creatively navigating the travel landscape, seeking out opportunities that reflect their personal passions and interests.
“When things get tough, Australians are more selective about what they spend on, and experiences are what will create great memories,” says Donna Berry, the head of commercial revenue at Currumbin Wildlife Sanctuary. “We have animal encounters like breakfast with the koalas, and after COVID, bookings have really increased because it leaves them with a special memory.”
According to recent surveys, 91% of Australians are planning a trip in 2024, and many are shifting their focus to domestic destinations. In fact, research found that Australians are overwhelmingly favouring homegrown holidays, with Queensland, New South Wales, and Victoria topping the list for popular travel destinations. But while their travel ambitions remain intact, Australians are adapting by tightening their budgets. A recent NAB report revealed that many Aussies are setting aside about $528 a month to cover the costs of travel, with a substantial portion of the savings going toward everyday essentials or mortgage payments.
Despite the tightening of travel budgets, the desire for meaningful travel experiences has not waned. In fact, 83% of Australians indicated they are now seeking ways to reduce travel expenses to maintain their vacation habits. Shorter holidays are becoming more common, with 53% opting for getaways that last between two to seven days.
“We’re finding that our visitor intake numbers are up because, yes, things are tough, but that’s also what makes Australians determined to take holidays,” says Berry. “Experiences mean even more to them now, so they’re more prepared to spend on them.”
One of the biggest shifts in the Australian travel scene is the rise of workcations, where employees combine work with leisure. The 2024 research found that 77% of Australian hybrid workers would consider taking a workcation if their company supported it. Workcations are benefiting both employees and employers, with studies showing that those who take workcations report 20% greater job satisfaction.
As hybrid work continues to gain momentum, the demand for workcation-friendly accommodations is soaring. Companies such as Qantas are responding by offering workcation hotels that are equipped with high-speed Wi-Fi and workspace facilities near popular tourist destinations. These offerings provide an opportunity for Australians to blend work responsibilities with the relaxation of a holiday, allowing them to recharge without taking time off.
Aussies are increasingly seeking vacations that align with their passions. Around 28% of Australians are planning sports-related trips, while 31% are booking holidays to visit locations featured in their favourite video games. Passion-driven travel is redefining what Australians consider a memorable vacation, with a rising interest in exploring niche, often lesser-known destinations that resonate with personal interests.
“Many hotels discount to fill rooms, but it can be damaging,” warns Brendon Matthews, owner of the Ballina Heritage Inn. “You might attract the wrong clientele and risk annoying your regulars by dropping rates they might miss out on.”
This trend extends to pop culture tourism, with Australians flocking to locations tied to their favourite movies, games, and shows. For example, the Silverton Hotel in NSW has become a major draw for Mad Max II fans, offering an immersive experience that includes a museum and iconic vehicle displays. These kinds of unique travel experiences, which tap into the Australian love for adventure and storytelling, are gaining traction as more Aussies seek enriching and passion-driven escapes.
As the global group buying market continues to grow, Australian consumers are increasingly turning to discounts and membership deals to make travel more affordable. Platforms like Scoopon, Groupon, and Deals are capitalizing on the demand for deals, offering bargain hunters exclusive promotions on domestic and international travel. Meanwhile, companies like Accor Hotels are tapping into the staycation trend, offering members special rates and exclusive experiences to encourage local exploration.
Berry also highlights the growing importance of memberships for building customer loyalty. “As a business that attracts families, the membership model is perfect. Yet it’s essential to create new attractions and experiences that keep everything fresh to ensure their membership is worthwhile and keep them coming back to use it.”
Skyscanner has partnered with Up Bank to help Australians manage their travel finances, providing tools for real-time spending insights and automated savings. Up Bank’s CEO, Xavier Shay, speaks to the growing need for better financial planning when it comes to travel: “Our real-time spending insights and automated savings tools help our customers stay on top of their travel budgets, ensuring that they can continue exploring without breaking the bank.”
Nick Morris, UK-based founder and Managing Director of Canvas8, said, “As Australians continue to embrace budget-conscious travel without sacrificing quality experiences, businesses are presented with numerous opportunities to innovate and meet these evolving needs. For example, helping Aussies make financially responsible travel decisions, offering attractive membership deals, and tapping into the workcation and passion-driven tourism trends can yield valuable results. With Australians prioritizing local getaways and personal experiences, companies that cater to these needs will be well-positioned for success in 2025.”
Why Aussies find ways to travel even on a tight budget may be downloaded here for a limited period: https://www.canvas8.com/library/reports/2024/12/26/why-aussies-find-ways-to-travel-even-on-a-tight-budget
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