AUSSIES CUT DINING TO FUND HOLIDAYS, WITH 55% PRIORITISING TRAVEL BUDGETS

Australians are reshaping their spending to keep holidays on the calendar

Australians are trimming their dining, takeaway and entertainment expenses to fund getaways, with many opting for closer, cheaper trips as costs rise, new research shows.

The research, from iSelect, finds 55 per cent are cutting back on dining out and 46 per cent are reducing takeaway to prioritise travel.

Entertainment sits next on the chopping block, at 41 per cent, followed by clothing at 39 per cent, indicating a broader reprioritisation toward leisure and escape despite persistent cost pressures.

As part of spring financial clean-ups, 30 per cent say they will review travel and leisure spending, signalling that households are actively reassessing how and where their holiday dollars are allocated.

With warmer weather and a wet season forecast, more than a third of Australians, 34 per cent, plan to choose more affordable local getaways or day trips over pricier holidays.

Sophie Ryan, iSelect spokesperson, said: “Australians are passionate travellers, but rising costs are forcing many to get creative with their budgets.

“Whether that’s swapping overseas trips for local escapes or cutting back on everyday luxuries, it’s clear that holidays remain a priority, and people are willing to make sacrifices elsewhere to afford them.”

Travel appetite remains strong. The Australian Bureau of Statistics reported 1,819,770 overseas departures in July, up 10.3 per cent year on year.

The five most popular destinations included Indonesia, New Zealand, the United Kingdom, the United States and Thailand.

Research indicates a shift toward mindful spending and value-driven holidays. Ms Ryan encouraged travellers to extend the same scrutiny to their travel insurance and household expenses.

“With so many Australians looking for any way to cut costs to afford a holiday, it’s also a great time to review your travel insurance and other household expenses to make sure you’re getting the best deal,” Ms Ryan said.

“A few smart comparisons across things like insurance, utilities and streaming services could potentially free up hundreds of dollars a year, money that could go directly towards your next getaway.

Not only can comparing help you save, but it can also give you the confidence that you’re adequately covered and getting value for money, so you can truly relax and enjoy your holiday.”

For travellers planning an overseas escape or a local weekend away, reviewing or upgrading travel insurance, checking inclusions and exclusions, and comparing prices can help stretch budgets further while maintaining peace of mind.