Hot Destinations: Europe holds the crown, but Asia beckons

There’s nothing quite like sipping espresso in a sun-drenched piazza, relishing the buzz of Soho’s nightlife, or admiring the Eiffel Tower at sunset. Europe remains the crown jewel of ANZ customers’ summer travel plans.

The United Kingdom, Italy, and France topped the list of destinations in 2024 and during this year’s Euro summer season, ANZ expects its customers to spend up to $280 million across the Continent.

However, our latest research shows Asia is also heating up. Japan surged in popularity, with ANZ customer spending rising from $13.12 million in 2023 to $17.37 million in 2024. This marked a 32.4% year-on-year increase - one of the highest among all international destinations. The country’s efficient transport, safety, and culinary experiences make it an attractive alternative to pricier European locales.

Similarly, Thailand and Indonesia saw gains, likely driven by their affordability and appeal as tropical, culturally rich getaways.

Budget-conscious, credit-savvy, and shorter stays

Australians are still travelling, but they’re doing so more cautiously. The average spend per traveller dropped by 13% to $2,480, and the average trip length shortened from 14 to 13 days. This suggests a shift toward more budget-conscious travel, influenced by cost-of-living pressures and a desire to stretch holiday budgets further.

Credit cards remain king, accounting for nearly 70% of all Euro summer transactions. Hotels were the top spending category among ANZ card holders, with $53 million in 2024. This was down 27% compared to the prior year. Vehicle rentals had the highest spend per customer ($1,305), hinting at a preference for road trips and flexible itineraries.

Gen X leads the charge, boomers pull back

Gen X travellers - those in their 40s and 50s - are leading the Euro summer resurgence, spending over $88 million in 2024.

In contrast, Baby Boomers pulled back significantly, with a 22% drop in spend.

Gen Z, while spending less overall ($1,551 per ANZ customer), showed the smallest decline, suggesting that younger travellers are still prioritising travel - perhaps opting for shorter, more affordable trips.

State of travel

When it comes to total spend by Australian state, New South Wales took the lead in 2024, overtaking Victoria. However, Victorians still hold the title for highest spend per traveller, averaging $2,629 - a sign that while fewer may be travelling, those who do are indulging more.

May emerged as the peak month for planning Euro summer holidays, with a surge in airline and hotel bookings. July remains the most popular month to travel, with ANZ customers spending $97 million in that month alone, though spending in all summer months declined compared to 2023.

Yiken Yang is Managing Director, Everyday Banking, Australia Retaill at ANZ