Amid rising cost-of-living pressures, more than half of Australians are opting to forgo their daily coffee indulgence in order to finance overseas trips. Recent data from NAB’s consumer sentiment survey reveals that 51% of Australian travelers are willing to cut back on takeaway coffee to save for international vacations.
As living expenses continue to climb, a notable 65% of Australians are actively reducing their discretionary spending. This trend extends beyond just coffee, with significant cuts also observed in dining out (57%), snacks and treats (52%), entertainment (49%), and food delivery services (43%).
In addition, there is a marked decrease in domestic travel (45%) and car trips to save on fuel (46%), reflecting a shift in priorities towards international travel over local getaways.
This shift contrasts with last year’s sentiment, where 74% of Australians indicated they would maintain their spending on personal comforts despite financial strains.
New research from Skyscanner highlights that Australians are adding an average of up to $370 per month, totaling over $3,800 annually, to their holiday savings by eliminating their daily coffee expenditure.
For example, with just two months of saving $370 per month, travelers could afford flights such as Melbourne to Malaysia for $412, Sydney to South Korea for $679, or Brisbane to Vietnam for $477. By extending their savings period to four months, Australians could book longer-haul flights such as Melbourne to Austria for $1,447, Sydney to Canada for $1,404, or Brisbane to Italy for $1,198.