In a recent NOW FINANCE survey, we discovered that 45% of Australians have a holiday on their wish list, but feel that they can’t afford to take one. What really stood out about this response is that more people want to take a holiday than want to buy a car, buy a home, or renovate their home. Taking a holiday was easily the number one thing on Australian’s wish lists.
What Does This Say About Australians?
People wanting a holiday is hardly the biggest shock in the world, but taking a holiday should probably be some way down a list of priorities if we’re stacking up what we should be looking to spend our money on. While the number of people having a holiday on their wish list is significant, in terms of personal loans, travel loans make up a very small proportion of the market.
This could indicate one of two things:
- Australians are unaware that personal loans are available to be used for covering the cost of a holiday.
- Australians are doing a great job of prioritising and when they take out personal loans, are doing so on things that they view as more important.
At NOW FINANCE, a relatively small proportion of our personal loans (8.1%) are settled to customers who plan to spend the money on travel, in comparison to 27.3% who buy a car, 13.9% who use it to fund a home renovation, and 10.5% who use a personal loan to consolidate their debts.
Looking wider across Australia, only 4% of personal loans are used for travelling, compared to 60% for a car purchase, 5% for home renovation, and 11% for debt consolidation. In total, Roy Morgan projects there are 81,000 active personal loans in Australia that have been used for travel purposes.
From this perspective it certainly looks like Australians are prioritizing and taking out personal loans to cover things they view as being more important than a holiday. Yet, at the same time, of the 8.1% of NOW FINANCE customers who use a personal loan to cover travel costs, only 11% of those have a mortgage, so there’s certainly an element of Australians adapting to the changing interpretations of the Australian Dream and choosing travel experiences over saving for a mortgage deposit.
If It’s On Your Wish List, Make it Happen!
If you’re one of the 45% of Australians who feel they can’t afford a holiday, at NOW FINANCE we want to help you try and achieve your ambition, whether you want to take a domestic holiday or travel overseas.
We previously wrote about the most popular state for travel loans, New South Wales, and noted how nearly a third of the travel loans taken out in Australia are settled to residents of that state.
In the same article, we also looked at Australian Bureau of Statistics data that stated of all Australia’s vast volume of tourism revenues, 75% of it comes from domestic tourism each year. This highlights the immense appetite among Australians for taking holidays at home, and if you wanted to take a domestic holiday using a personal loan, you could.
What if I Wanted to Travel Abroad?
If you want to go abroad then of course you can use your loan for this purpose, too, and given the usually higher cost of holidaying abroad owing primarily to flight expenses, it is likely that would-be international travelers will be more in need of a personal loan.
While Australia’s tourism industry is heavily reliant on domestic travel and continues to grow in this respect, the number of Australians travelling abroad has also grown steadily for the last 10 years, reaching record levels of almost 10million overseas trips taken in 2015 – 16.
Where are Australians Travelling?
Overseas travel from Australia isn’t dominated by holidays to New Zealand, as you might expect. While New Zealand is unsurprisingly the most popular destination, it isn’t a runaway leader or responsible for a huge majority of trips at all.
Part of the reason for this is likely to be the cost; Australians can often travel to Indonesia at a lower cost than taking a holiday in New Zealand, and given the lower accommodation and ‘cost of living’ expenses required, there’s also the potential to enjoy a longer trip to Indonesia, or even tour South East Asia and make your trip a real once in a lifetime experience.
The table below highlights the five most popular overseas destinations for Australians, as well as additional information on flight times, popular attractions, and costs.
- Traveller numbers from the Australian Bureau of Statistics
- Flight times taken from Sydney. Shortest possible flight time is listed
- Flight costs taken as cheapest option from Fare Compare, flying from Sydney
- Accommodation costs based on a family of four spending 16 nights in a 3-star hotel, based on average prices stated on Hotels.com. Australian Bureau of Statistics data highlights 16 days as the average length of overseas trip taken by Australians.
- Total Holiday cost is flights and accommodation only and does not include an allowance for sightseeing, food, entertainment, and other travel expenses
- All prices/data taken on 17th November 2016
If you still don’t believe that an overseas trip could be so easily within reach with a personal loan, we explain exactly how you can achieve a dream holiday for under $10,000 here, and give you some tips for budgeting for a trip to Europe here.
Where do You Want to Go?
Whether you’re looking at travelling abroad or simply want to see more of your home country, if it’s been years since you’ve taken a holiday or you want to treat your family to a real once in a lifetime experience somewhere iconic, at NOW FINANCE we want to help you achieve your travel ambitions.
Get your interest rate here before applying, work out how much you can afford to borrow, and apply for your personal loan to take that holiday that’s on your wish list.
Go on, treat yourself!
Disclaimer: This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.