After the enormous inflation, more and more people are using their holiday money to finance daily life. If possible, part of it will also be kept. According to the current “Deloitte Summer Survey”, only about half of domestic respondents actually want to spend a large part of their extra salary this year.
“A third wants to save and spend the extra salary in equal parts,” says Orsolya Hegedüs, partner at Deloitte Austria, about the research results.
“Although there are now signs that inflation is decreasing, the austerity measures make one thing clear above all: uncertainty among the population remains and the burden of high costs is heavy,” said the Deloitte partner.
Everyday life instead of travelling
In addition to travel (55 percent), holiday pay is mainly used for daily purchases such as groceries or household items (26 percent), but also for larger purchases such as buying a car or furniture (22 percent), according to Deloitte. Almost a fifth (19 percent) also use part of the extra salary to pay off loans.
“More than a quarter of employees are using their holiday pay to pay for daily expenses more often than before inflation, and the summer holidays have taken a back seat,” said Deloitte Austria CEO Harald Breit. In a prosperous country like Austria, this is “an alarming result.” It illustrates the cost pressures that are ubiquitous for large parts of the population.
Long-distance travel is declining
No major leaps would be made in the holiday field. According to the research, people mainly go on holiday in Europe or Austria in the summer. A flight to faraway places is often avoided.
Specifically, 71 percent of respondents want to explore European countries this year, and 39 percent are also leaning towards a summer holiday in the Alpine republic. Only 14 percent make a long journey.
“The belts are being tightened”
On average, respondents have a budget of 1,730 euros available for their holiday. An average additional budget of 778 euros is budgeted for children up to the age of 18 in their own household.
“Even though some people can still afford to travel without problems, in many cases their belts are being tightened,” says Breit, referring to the high daily costs.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
