The majority of Australian mortgage holders are not willing to compromise their holiday plans even if mortgage rates increase by as much as 0.5%, according to a survey from online travel insurer InsureandGo.

When asked whether they would downgrade or cancel holiday plans if interest rates hiked by either 0.5% or 0.25%, most respondents said that they would travel normally regardless of the amount of hike.

53% expressed that they would still travel as normal. 16% would prefer to downgrade their domestic holiday to a cheaper one, 17% would opt a cheaper overseas holiday, and 14% would not leave their homes at all.

The older the mortgage holder, the more likely they are to stick with their travel plans.  In the event of a 0.25% rate increase, 74% of over-60s, 57% of those in their 40s and 50s, and 38% of those in their 30s would not change a thing in their travel plans.

The trends were the same in the case of a 0.5% rate rise. 73% of over-60s, 50% of those in their 50s, 44% of 40-somethings, and 29% of 30-somethings would keep their holiday plans unchanged. In terms of travel plan modifications, 47% of mortgagees would holiday as normal, and just 16% would not holiday at all. 

Commenting on the findings, InsureandGo Managing Director Raphael Bandeira underscored the willingness of customers to spend money on travels.

 “We’d like to think that travel spend is another barometer for consumer confidence. While retail turnover figures have been stagnant – with growth of just 0.3% in recent months – international trips by Australians grew 7.2% in the year to July 2017 and 4.2% in the year to July 2018. Australian domestic travel spend grew 6% in the year to March 2018,” he noted.

When the figures shared by Bandeira are compared to CoreLogic’s report on the slowdown in property turnovers, it may be deduced that Aussies are likely to spend on travels than properties.

More importantly, though, the overall data implied the utmost value Aussies give to holidays. This considering the fact that amid a rise in household expenses, 33% would rather downgrade to a cheaper domestic or overseas holiday, than sacrificing travel completely. 

The aforementioned poll was conducted among 1000 Australian mortgage holders across the nation.