Westpac travel report: Gen Y spending $11 billion a year on jet-setting overseas

The Australian millennial generation, who roughly range in age from 18-34, seem to be big spenders when it comes to overseas holidays, splashing out the most out of any other age group.

In fact, Westpac's 2016 Travel Finance Report revealed they are racking up a combined yearly holiday bill of over $11 billion, with the average overseas holiday costing $3,461.

When Westpac compared how much millennials are spending on travel against other generations, the research showed their holiday-spending equated to 15% more than Baby Boomers ($9.8 billion) and 66% more than Generation X ($6.8 billion).

"We know that Aussie millennials love to explore the world in pursuit of amazing experiences, with the USA, UK and Europe being the most popular destinations,” said Ashley Gray, Westpac's Head of Youth and Millennial markets.

While Gen Y may be spending more on their overseas trips than other generations, the research also highlighted they were being savvy about it, with 70% taking an average of eight months to save before jet-setting overseas.

However, Gray said millennials needed to continue being financially savvy once they were abroad by thoroughly researching their destination and creating “a daily budget that takes into account current exchange rates and the cost of food and drinks, transport and sightseeing.”

Top tips for managing your finances while travelling overseas:

  • Know how much the Aussie dollar is worth in the country you’re travelling to, so you don’t over or under-estimate what you’re spending.
  • Pack a travel money card with you - by comparing travel money deals side by side - that comes with low overseas ATM withdrawal fees and overseas currency conversion fees.
  • Conduct some research before you jet-set overseas around the exchange rates and what the cost of everything from eating out to sightseeing will be, so you can create a realistic budget to stick to.
  • Take some time to also book some of your activities in advance, that way you’ll avoid breaking the budget you have set and paying last minute rates.