New data from the National Australia Bank (NAB) reveals a trend of 'careful cutbacks' among Australians with their travel plans, with 45% making changes or cuts to travel plans in the first three months of this year.

The trend has led to an average monthly saving of over $500 per person and continued into Q1 2024, with Australians saving around $528 a month from cancelled, postponed, or slimmed down travel plans, a 39% increase from Q4 2023.

"Australians are prioritising essential costs and boosting savings by choosing to postpone, slim down or cancel travel plans this year," said NAB Personal Everyday Banking Executive, Paul Riley. He added this shift reflects more long-term budgeting, a positive development from the quick, short-term budget cuts seen last year.

"Where we saw people making quick, short-term budget cuts last year, we are seeing more consideration and longer-term budgeting happening, which is really positive."

Millennials have made the most significant travel savings so far this year, saving around $743 a month. This is followed by the 50-64 age group saving $645 a month, the 65+ group saving $440, and Gen Z saving $329 a month. These savings are being used to cover more expensive everyday items (59%), boost savings or offset accounts (42%), and pay down mortgages (20%).

"For some it might mean switching the Amalfi Coast for the Sunshine Coast, for others swapping an interstate break for a city staycation," Riley noted.

"This is another example of the 'loud budgeting' trend we have seen emerge over recent months, where people are feeling more comfortable to set budgeting boundaries and communicate them openly with their friends and family."

The data, from the NAB Consumer Sentiment Survey Q1 2024 of over 2,000 Australians, also revealed one in four Australians are likely to reduce spending on travel in the next 12 months, both internationally and domestically.