While buying a house remains unattainable for many Australians, many are prioritising luxury items like holidays to give themselves a fast boost.
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This is according to HSBC's Money Mentality study which found paying for a holiday was the top financial goal for over 40 per cent of Australians, followed by saving for an emergency fund and paying off debt.
The cost of living remained the biggest financial concern for Aussies, followed by housing affordability and a potential recession, the study found.
When it came to saving for travel, 55 per cent of Gen Z spent about the same or more of their money on travel and tourism in 2024, despite the cost-of-living crisis.
HSBC Australia head of international wealth and premier banking, Jessica Power, said it showed a shift in financial priorities.
"As housing affordability remains relatively unattainable for most Australians, especially young people, saving for a holiday or buying a small luxury item may be more attainable in the short term and allows people to live in the moment," Ms Power said.
"Interestingly the research found that almost half of Gen Z (45 per cent) feel unprepared to handle a major unexpected expense, but in contrast 10 per cent say they are saving to buy luxury items."
Prime time to travel
An analysis from Travelinsurance.com.au showed February and March were the cheapest months to book international travel due to lower demand after the holiday season.
The data showed there was generally a big drop in travel costs during the first quarter of the year, with international travel prices falling by 5.9 per cent in the first quarter of 2024.
CEO Shaun McGowan said while popular destinations like New Zealand and India had seen early-year travel surges, Europe experienced a decline due to seasonal weather and fluctuating costs.
"Travel is often cheaper at this time of year due to many households restricting their budgets after the Christmas period, leading to lower demand and better deals for those who can take advantage," Mr McGowan said.
"Understanding these seasonal pricing patterns allows travellers to make informed decisions and maximise their travel budgets."
Helloworld Travel Lane Cover owner Debbi Ashes said she always advises her clients to book international travel in February and March as prices are lowest "before demand spikes later in the year".
"The savings on flights and accommodation can be significant, allowing travellers to upgrade their experience or extend their trips," Ms Ashes said.
Airports break records
High travel numbers are shown at Australia's airports as Melbourne Airport broke its all-time passenger record in January with a record 3,393,977 passengers through the terminals, surpassing the previous record of 3,322,940 passengers set in December 2019.
The airport also set a new monthly record for international travellers with 1,238,829 people passing through the international terminal, including a record 671,135 arrivals.
Melbourne Airport has been upgrading its baggage system and road system and installing a new runway to cater for increased demand.
Launceston Airport also broke all-time passenger records in January, with 159,032 individuals passing through the gates, eclipsing the previous record of 150,189 set in January 2019.
CEO Shane O'Hare said the airport was planning for future records and growth with $100 million of infrastructure upgrades planned over the next five years.
Sarah Falson
My all-time favourite destination is ... Cornwall. From the giant seagulls to the blustery beaches, Cornish pasties and fishing villages, it stirs something romantic and seafaring in me.
Next on my bucket list is … Mongolia. I want to go somewhere really unique that feels totally foreign and challenges my way of life.
My top travel tip is … Don’t plan too much. Walk the streets and let it happen. And make sure you check out what’s within a few blocks of your hotel - sometimes the best local food is found that way.
