Travel can be expensive, but rising costs aren’t stopping Australians from booking holidays. Instead, many are finding ways to spread the cost. Personal loans are an increasingly popular option to bridge the gap, allowing people to fund the getaway they want without delay.
Australians borrowing more for holidays
Australians are borrowing significantly more to fund their travel plans, with new data from Savvy revealing a 42% year-on-year increase in the average travel loan size. Between September 2025 and January 2026, the average holiday loan requested through Savvy rose to $20,394, up from $14,293 in the same period the previous year.
It’s not just loan sizes climbing. Savvy also recorded a sharp rise in demand for travel finance, with enquiries for holiday loans jumping by 63% from 2024–25 to 2025–26.
Why are holiday loan sizes increasing?
Rising travel costs
Trips themselves are costing more. Flights, accommodation and on-the-ground spending have all increased, pushing up the amount people need to finance a holiday.
ABS data shows that domestic holiday and travel prices rose 9.6% in the 12 months to December 2025, while the cost of travel abroad jumped by 24.4%, largely due to increases in international airfares.
Cost of living pressures
At the same time, cost-of-living pressures are making it harder for households to build up dedicated travel savings.
With higher spending on essentials like housing, food and energy, many Australians find their day-to-day expenses eating into their ability to save. This financial squeeze is leading some to turn to personal loans – and to borrow more – to make their holidays possible.
Experience over savings
There’s also a growing “experience now” mindset, with many people choosing to prioritise travel now rather than waiting years to save.
Financing the cost is seen as an acceptable trade-off to enjoy a holiday sooner. This attitude also means people may be willing to stretch their budgets and spend more to make the most of their time away.
Travel is still a top priority
While 76% of Australians are worried about the cost of living, paying for a holiday remains their top financial goal.
People are continuing to travel in large numbers, with the number of overseas journeys now surpassing pre-pandemic levels. According to the ABS, over 12 million trips abroad were taken in 2024–25, with around three in five Australians travelling for a holiday.
This suggests that even with rising costs, many Australians aren’t willing to give up their annual break.
Personal loans help spread the cost
Personal loans offer a flexible way to finance a holiday, providing a lump sum that travellers can use to book flights and accommodation and pay for other travel-related expenses. They can then repay the loan in manageable instalments over a period that fits their budget.
With rates, fees and features varying between lenders, comparing options is essential. Savvy simplifies this process by working with a panel of lenders to connect borrowers with the loan that best fits their needs.