Cozzie livs no match for multibillion-dollar Xmas spend
A forecast of a multi-billion dollar increase in Christmas and holiday spending is being taken as a sign that Australians are finally starting to get over their cost of living woes.
Consumers are expected to loosen their purse strings during this silly season, as spending on gifts, food, dining out and travel increases significantly.
A survey of more than a thousand Australians for comparison site Finder reveals they plan to earn an average of $1750 each.
The $37 billion nationwide amount is 29 percent more than last year’s total, calculated from individual spending of $1,357.
Money expert Rebecca Pike attributes the $393 increase to households finally loosening their purse strings despite long cost-of-living constraints.
“This increase in holiday spending is a sign that consumer confidence is returning,” he says.
“After years of disruption, many families are finally feeling like they can breathe again and are choosing to celebrate in style.”
It’s a view shared by Kate Britton, chief executive of big four bank ANZ; here, analysts estimate that consumers will pour an extra $5 billion into the national economy alone during the two-week holiday period from Dec. 21 to Jan. 5.
“Customers are embracing the festive spirit and we are seeing this reflected in their spending habits both in the run-up to Christmas Day and in the sales that follow,” he says.
“From travel and entertainment to digital goods and luxury goods, this seasonal surge presents a significant and welcome boost for businesses across the country as consumers use their free time to pamper themselves and their loved ones.”
Gift-giving remains a priority, with estimated spending on gifts coming in at $438, or 22 percent more than last year, according to Finder’s figures.
That means $9.4 billion will be spent on gifts nationwide, with eight in 10 survey respondents saying they plan to buy gifts.
Eating in will attract a $269 spend, while eating out will leave a $215 hole in the budget.
In total, this will produce an estimated $4.6 billion nationwide bill.
Three in five Australians are also lining up their Christmas drinks, but the average alcohol intake is estimated at $123, which actually represents a 15 per cent drop from 2024.
Even so, the national Christmas booze bill is estimated at a whopping $2.6 billion.
“It’s great to see Australians in a better financial position, but it’s still important to spend responsibly,” Ms Pike says.
“A bigger Christmas shouldn’t mean a bigger credit card bill in January; the smartest move is to enjoy the season without sabotaging your New Year’s budget.”
But as households enthusiastically shop and plan festive meals, around 54 million plates of Christmas dinner could end up in the trash.
End Food Waste Australia’s research shows that around 70 per cent of household food waste is completely edible, and around half is sent to landfill.
“We know the careful planning that goes into Christmas and the pressures affecting so many families across the country, so it’s hard to imagine that much of this food will never leave the plate,” says Francesca Goodman-Smith, the federal department’s director of research.
“With a few simple tips and information on how we shop, cook and store food, we can all enjoy the season, reduce unnecessary food waste and save money in the process.”
Finder’s research shows 35 per cent of Australians are also planning a summer getaway this year.
An average of just over $700 is expected to go towards flight and accommodation expenses; This means an increase of 62 percent in 2024.
Australians are actually among the most motivated travelers in the world right now.
A survey commissioned by insurance company Europ Assistance in 21 countries reveals that more than 60 per cent plan to travel to round out the festive season, compared to 47 per cent in Europe.
According to Insure&Go Marketing Director David Mayo, “We know that despite cost of living pressures, travel is one of the last things people want to give up.”
“This year’s data confirms that Australians are prioritizing their holidays perhaps more than ever before.”
The average holiday budget also rose to around $5,180, which is well above the European average of $3,410.
Australians are also taking longer breaks.
The Europ Assistance study suggests an average travel time of 2.1 weeks, beating both Europeans and Americans.
Long-term getaways are also more popular Down Under; 14 percent are planning a three-week vacation, compared to 12 percent of Europeans and just 7 percent of Americans.
7 percent of Europeans and 5 percent of Americans plan for four weeks or more, while another 14 percent plan for four weeks or more.
Australians are almost evenly split on holiday destination choice; 41 percent prefer domestic getaways and 45 percent prefer international getaways.
“Travel is in full swing again,” says Mr Mayo.
“We expect Australians to travel more, spend more and stay away longer this holiday season.
“The enthusiasm we are seeing will not only benefit airlines and hotels, but also the many small businesses and communities that rely on tourism in Australia and abroad.”
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