Spike in holidays but airline spend down.

Bankwest’s latest Spend Trends analysis has highlighted a shift by Western Australians during the month of July toward securing better value for money holiday options compared with the prior year.

• Holiday sectors led month-on-month and year-on-year growth in customers and transaction value
• Total spending volume at hotels and motels in July increased by 14% compared with June but the value of airline transactions declined when measured year-on-year
• The airline sector saw a 5% year-on-year increase in the number of customers transacting but the average value of transactions dropped by 7%, indicating a shift toward cheaper flight options.

The charge on holiday spending was driven by Gen Z and Gen X, with 20% more unique Gen Z customers transacting and 13% more individual Gen Xers transacting with travel agencies compared with July 24.

Notably the value of transactions for Gen X increased in the hotel and motel sector by 16% but the value of transactions in the airline sector decreased by 11%.

Other significant year on year shifts in the holiday sectors included an overall increase in unique customers transacting with travel agencies (up 8%), possibly indicating a focus on securing value for money deals.

Bankwest’s Spend Trends tracks WA customer credit and debit activity, with July data revealing a modest 2% rise in the overall spend volume year-on-year.

Western Australians maintained steady spending habits month-on-month, with no change in the number of customers transacting or transaction volume. However, the average transaction value dipped slightly by 1%.

Year-on-year data also reveals a 4% decline in the number of customers transacting and a 4% rise in average transaction value.

Year-on-year spending data across the generations revealed Gen Z as the most active group, showing an 11% increase in total transaction volume and a 3% rise in average value of transactions.

Millennials and Gen Xers both saw a 4% decline in customer numbers, yet both maintained modest growth in spending, with 3% increases in volume and 6% gains in average transaction value.

Baby Boomers experienced a 5% drop in unique customers transacting and a 2% decline in volume, though their average transaction value rose by 1%, indicating a shift towards fewer but higher-value purchases.

Bankwest Executive Manager of Everyday Products Allan Emery, stated: “The data indicates that many West Australians are considering holidays, though they are approaching these decisions with discernment.

“July saw a notable rise in holiday spending with more customers looking to spend their holiday dollars on hotels and motels and choosing to transact with travel and booking agencies.

“Gen Z and Gen X led the growth, with data revealing travel agencies received a robust uptick in customer bookings from these demographics compared to the year prior.

“While more customers purchased airline tickets, the average value of transactions dropped in this sector suggesting consumers may be opting for more budget-friendly travel options or shorter trips.”