Now it seems everyone needs a break

AUSTRALIANS see holidays as a necessity rather than a luxury, new research suggests, while food is first on the chopping block when we cut costs.

A comparethemarket.com.au survey of 1155 Australians found 77 per cent favoured a good holiday over good food and 74 per cent would cut back on dining out to afford their trip. Others would pack lunches for work (56 per cent) and ditch cafe coffees (52 per cent).

Only 9 per cent would forgo a holiday, even if rising utility bills and insurance premiums stretched their budgets.

Comparethemarket.com.au spokeswoman Abigail Koch said lifestyle expectations had evolved.

“Holidays have become less of a luxury and more of an expectation,” Ms Koch said. “If someone hasn’t taken a holiday in six months, it’s a big deal.”

Other areas we cut back on included alcohol, beauty products and taxis. But mobile phones and streaming TV shows were non-negotiables.

“Very few people would change mobile phone habits and less would cut back on streaming,” Ms Koch said. “Now that people have tasted binge-watching favourite shows, they would be much less likely to go back to their old ways.”

The Australian concept of an “average life” has also changed to include “living in a house, with a decent job, private schooling and a holiday once a year”, Ms Koch said. “The number of international travellers has grown in recent years and international holidays are becoming the norm thanks to competition between airlines.”

Warren Smith and his wife Sheena spent years running their business and were never able to take holidays, but since retiring have more than made up for it.

“I’ve seen 60 countries now,” Mr Smith said, explaining he divides time between travelling and volunteering for the SES and Riding for the Disabled Association.

The Smiths are planning a trip to Africa next year and have already hit some cost hurdles.

“I had no idea how expensive Africa would be, the prices are really over the top,” Mr Smith said. “Demand is greater than supply. One Nairobi hotel I wanted to go to is booked out three years in advance and that’s at $1200 a night.”

Years of travel experience have taught Mr Smith some handy saving tricks.

“We book everything independently rather than through a tour agent,” he said. “We watch for specials at hotels. I always email a hotel directly after booking and ask them for any extras they can add on.”

At home, the Smiths cut back on going to the theatre and eating out at restaurants to make sure their budget stretches further.

“It’s a balance of spending enough to keep ourselves happy and saving enough to get into a good nursing home one day,” Mr Smith said.

“My wife is fantastic at budgets and we work with daily and weekly budgeting to keep on track, because our resources are finite now that we’re retired.”