New data reveals Australians are changing their holiday plans during the cost-of-living crisis, saving them at least $300 per month.
NAB’s consumer sentiment survey of more than 2000 Australians found one in three people were reporting high stress as a result of the cost of living during the first quarter of 2024.
As a result, the number of consumers changing their holiday plans this year to save money jumped by 39 per cent compared to the end of 2023.
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NAB said millennials, people born between 1981 and 1996, were saving $743 a month by cancelling, postponing or changing their holiday plans.
“For some it might mean switching the Amalfi Coast for the Sunshine Coast, for others swapping an interstate break for a city staycation,” NAB Personal Everyday Banking executive Paul Riley said.
The survey found people aged between 50 and 64 years old were saving about $645 per month, while those older than 65 saved $440 a month by changing travel plans.
Gen Zs, people born in the late 1990s to early 2000s, were saving about $329 per month.
NAB said 59 per cent of people were using the savings to cover everyday expenses, followed by increasing their savings account and then paying off their mortgages.
The consumer survey found people have been mostly cutting back on eating out, entertainment, car journeys, holidays and food delivery to reduce their expenses.
Last month, the Reserve Bank (RBA) kept interest rates on hold for the third meeting in a row, thanks to encouraging signs of inflation slowing.
The board has hiked interest rates 13 times since May 2022, in a bid to rein in the inflation rate.
NAB’s survey found the interest rate hold meant stress fell slightly across all income groups in the first quarter of 2024 compared to the last quarter of 2023, except for those earning between $50,000-$75,000 who were concerned about employment and funding their retirement.
But the bank reported there was less confidence among consumers that inflation will not spiral, with the survey finding people expected the price of goods to be higher in 12 months rather than three months’ time.
“This highlights the fragility of consumer sentiment — consumers do not trust that there will not be another shift in the economy resulting in renewed growth in prices,” the NAB report said.
It said financial stress was highest for Victorians, driven by concerns about job security, and lowest for people in Western Australia.
– With AAP