Australian holiday spending to reach $240 billion? Travel products recover

Australians are likely to spend $240 billion around Christmas, surveys and data show .

Foreign media reported that despite the lockdown, reduced income and travel restrictions this year, it is expected that most Australians' consumption enthusiasm will not wane around Christmas this year.

It is understood that the Commonwealth Bank's Household Spending Intentions ( HSI ) index hit a new high in November, reaching 110.3 points , the highest level since the outbreak of the epidemic. The HSI reflects people's consumption activities and their consumption intentions. Stephen Halmarick, chief economist of the bank , said that the data showed that Australia's recent economic recovery was strong.

He explained that during the lockdown , when economic activity was restricted, many households had hoarded hundreds of billions of dollars in extra savings. "Australians have increased their savings to record levels during the pandemic," he said. "CBA estimates Australian households have accumulated around $240 billion in excess savings, which people are ready to spend around Christmas . And during this period, there are signs of strong retail sales."

According to statistics, Australians spent 8 billion Australian dollars during Black Friday and Cyber ​​Monday , an increase of 8%.

Australian retail spending has risen 21 per cent since August, with the biggest gains in clothing, furniture and household equipment, electronics stores, home appliances, jewellery and watches, and pet stores. "On a more positive note, year-end celebrations have driven spending on cosmetics, clothing alterations and clothing rentals," Halmalik said.

The largest increases in the index were in transportation (up 21.5%) and travel (up 14.7%). This shows that people are ready to pack their bags and go on vacation. Travel products may see hot sales. "Importantly, the travel spending intention index is now 77% higher than in August 2021, but it is still 30% below the pre-pandemic level in November 2019," said Halmalik.

As Australians embark on their long-awaited holidays, spending is also increasing at hotels, motels and resorts, travel agencies, airlines, tourist attractions, campervans and more. Demand for camping and outdoor travel products is increasing.

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