Young Australians, particularly Gen Z, are reshaping their spending habits, prioritizing experiences over possessions. The desire to travel the world has taken precedence over traditional milestones like owning a home. According to the Australian Bureau of Statistics, more than 12.3 million overseas trips were taken by Australians in the year leading to June 2025, with a notable surge in younger travelers.
Skyscanner data reveals that 38% of Gen Z Aussies plan to travel internationally in 2025, surpassing other age groups. To make their travel dreams a reality, these young adults are adopting savvy financial strategies such as limiting daily expenses, utilizing dedicated savings accounts, and engaging in additional income-generating activities.
Jarrod Kris, a travel expert at Skyscanner Australia, notes that travel serves not only as a form of escapism but also as a means of forging connections through shared experiences. Despite economic challenges, Australians, especially the younger demographic, are steadfast in prioritizing travel, demonstrating a shift towards valuing memorable experiences over material possessions.
Margy Osmond, CEO of the Tourism and Transport Forum (TTF), concurs that the cost of living has propelled a shift in priorities, with many young Australians favoring travel experiences over homeownership. The impact of social media in fostering a desire for exploration and adventure cannot be overlooked, as it amplifies the “fear of missing out” and inspires individuals to embark on worldly escapades.
Furthermore, a study by Southern Cross Travel Insurance (SCTI) underscores the trend of redirecting savings towards travel rather than real estate investments. The report, titled The Future of Travel 2025, highlights that a significant proportion of Australians aged 18 to 44 are opting to forego homeownership to pursue enriching travel experiences.
Consumer confidence in Australia is on the rise, indicated by increased disposable incomes and heightened spending on leisure activities and cultural pursuits. CommBank’s Household Spending Index shows a consistent upward trajectory, bolstered by a robust labor market and favorable interest rates, enabling individuals to allocate funds towards both indulgence and savings.
Belinda Allen, the head of Australian economics at CommBank, attributes this positive economic outlook to a resurgence in consumer sentiment, with spending patterns reflecting a newfound willingness to explore the world and invest in personal growth. As disposable incomes expand and financial stability improves, the allure of travel becomes increasingly appealing to a growing number of Australians.
With a generation that values experiences over possessions, the travel industry is poised for continued growth and innovation, catering to the evolving preferences of young Australians who seek to broaden their horizons and create lasting memories around the globe.
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