Inflation impacting travel

A RECENT survey conducted by investment bank JP Morgan has shown the rising cost of living is biting into Australian travel intentions, with the number of people indicating their next holiday would be a “stay at home one” jumping from 16% in Nov 2021 to 21% in Jun.

The report supplied to The Australian also showed that a rise in cost of living expenses saw 65% of Aussies state they would be spending less on travel and holidays during the next 12 months if the current trajectory of inflation persists.

Also of concern was the meagre growth in outbound travel during the same time period of just 2%, hampered by international airlines only managing around 55% of outbound capacity when compared to pre-pandemic times, exacerbated by the virtual absence of Chinese-owned airlines in the country.

Just over 40% of respondents also stated they were “very unlikely” to travel offshore despite an overall drop in anxiety regarding COVID-19 and the reopening of international borders.

Older demographics were found to be the most risk-averse in the latest study, with the 50+ group leading the way by a significant margin when it came to having “no plans” to travel overseas.