25 July, 2016
Life milestones & good money habits take a back seat to travel pursuits, national report reveals
Aussies’ love affair with travel is burning stronger than ever with 76% of Gen Ys indicating they’d delay ‘settling down’ to travel overseas, according to new research commissioned by ME.
ME’s study suggests the ‘wanderlust’ phenomenon is alive and strong, with 62% of Australians who have travelled overseas in the past three years agreeing that travel is a ‘must-do rather than a nice-to-do experience’.
And, even though 79% of overseas travellers said ‘they’ve travelled more than their parents did’, this still wasn’t enough to keep their itchy travel feet at bay, with 88% saying they ‘would like to travel more frequently’ and 78% indicating they will ‘never stop travelling’.
ME’s findings also indicate that the nature of travel invites overspending.
The top reason for relaxing the purse strings was YOLO (You Only Live Once). Around 68% of overseas travellers said they ‘relaxed their normal spending discipline because YOLO’ – a figure that rose to 73% among Gen Ys.
Furthermore, 67% of Gen Ys ‘justified any overspending as they may never be in that country again’, and 63% said they ‘wanted to spend more to enrich their experience’.
ME’s findings also show good financial hygiene seemingly goes on holidays, when on holidays.
More than half (55%) of overseas travellers surveyed failed to make or follow a holiday budget.
Furthermore, 52% underestimated costs, with this figure rising to 63% among Gen Ys, who may be still learning how much things cost overseas.
And a similar proportion (51%) failed to conduct a post-trip examination of their spending.
ME’s Head of Deposits and Transactional Banking Nic Emery said he’s not surprised 40% of overseas travellers are financially worse off after an overseas holiday, despite many diligently saving for the occasion (82%).
“It’s great to open your eyes to different countries, however, how can you save and budget for your next trip if you’re not aware of what you spent last time?
“Travellers could be losing money to a ‘travel black hole’, a pit where unaccounted money disappears when your love for travel takes over and finances take a back seat.”
Emery said planning can make all the difference for travellers losing track of their spending.
“It’s now easier than ever to be organised on the go with a myriad of digital tools for budgeting and currency conversions available on our smartphones.”
Editor notes: Survey conducted via Pure Profile in June 2016 using an online survey method. Survey completed by 1,000 Australian adults who have travelled overseas in the past three years.