Finder’s money expert warned Aussies about the risks of going into debt to afford a getaway. (Source: Getty)
Australians struggling under the rising cost of living are getting creative to keep their holiday plans intact. Some Aussie report going into debt, or even turning to collecting cans and selling unwanted personal items to help fund their travel plans.
That’s the claim from consumer research giant Finder which surveyed more than a thousand Aussies about their wanderlust and how they are affording it. Nearly half said they had to get creative.
The results – part of the company’s rolling Consumer Sentiment Tracker – show many Australians among the lower half of earners are “desperate” not to miss out on some time away.
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According to the survey respondents, 25 per cent said they sacrificed social engagements to save and afford a holiday.
More than one in five (21 per cent) said they had taken to recycling cans and bottles to make extra cash, while 14 per cent said they had sold unwanted household items and clothing to fund their adventure.
About 13 per cent said the cost of living has seen them take on a second job or start a side-hustle to help achieve their travel plans.
It’s a trend that also shows up in recent data from major lender Westpac which found a growing number of Australians – 27 per cent – are currently turning to alternative and secondary sources of income by starting a personal side business.
Despite their diminishing value, the Finder survey also showed about 11 per cent of travellers were highly focused on leveraging rewards points and frequent flyer points programs to help subsidise the cost of their travel.
According to Finder’s personal finance expert Rebecca Pike, it’s not an overly rosy picture for some families.
“For many, travel isn’t affordable anymore,” she said.
“This shows just how desperate some are for a holiday. They’re not just cutting back, they’re hustling hard to make it happen.
“Consumers are willing to sacrifice everyday comforts to make it happen.”
However she cautioned about the worrying number of people who admitted to taking on debt and using credit cards to afford a getaway.
“If you do take on debt to travel, compare products and budget properly to make sure you can pay it off as quickly as possible,” she said.
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Finder’s Rebecca Pike says travel debt can come back to bite. (Source: Getty/Finder)
Pike revealed the consumer research company was seeing “a shift” towards more strategic holidaying among many Aussie families.
“We’re seeing a shift from spontaneous getaways to strategic planning – side hustles, points hacking, and selling pre-loved items to create travel currency,” she said.
“The emotional toll of constant cost-of-living pressure means a growing number of families are eager for a few days away.”
As the cost of travel slips away for some Australians, it can be tempting to cut corners and forgo things like travel insurance.
One in seven Aussie travellers (14 per cent) were not covered by travel insurance on their most recent international trip, recent research by Australia’s Department of Foreign Affairs and the Insurance Council of Australia (ICA) found.
That was up slightly on the prior year with a third of travellers opting against purchasing insurance because they were travelling somewhere they thought was safe, while 27 per cent believed it was “poor value for money” and 13 per cent claimed they “couldn’t afford it”.
Only 9 per cent of respondents to Finder in the latest survey admitted to forgoing travel insurance – but it’s something that can seriously backfire.
Brisane mum Melissa Borody would have been caught high and dry if she didn’t take out travel insurance. (Source: Supplied)
Aussie mum Melissa Borody knows that all too well, and found herself fighting for life in a hospital bed in Japan when she suffered severe bacterial meningitis while on a family holiday. Thankfully, her and her husband had taken out insurance.
“Our claim was close to $100,000,” she told Yahoo Finance this month, adding her excess was about $200.
“No matter what sacrifices you make to afford the trip, make sure to include travel insurance – you’ll be covered if your dream holiday turns into a nightmare,” Pike said.
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