West Australians Splash Cash on Getaways as Economy Eases
New data from Bankwest has revealed a significant surge in holiday spending across Western Australia, as residents seize the opportunity presented by a more stable economic climate. The figures from October 2024 to October 2025 show that West Australians are confidently opening their wallets for travel, with the number of customers using travel agencies jumping by 12 per cent.
Interest Rates and Consumer Confidence Fuel Travel Boom
This travel spree occurred alongside a period of monetary policy easing from the Reserve Bank of Australia, which cut interest rates three times in that 12-month window. This provided welcome relief for homeowners with mortgages, freeing up disposable income. Dr Daniel Kiely, a senior research fellow at the Curtin Economics Centre, confirmed that during this period of increased travel expenditure, inflation had been brought under control.
"When people have a greater ability to budget and plan ahead, they are more inclined to spend on items seen as luxuries, such as travel," Dr Kiely explained to The West Australian. The Bankwest data, which captures spending both online and in physical stores, even showed that this recent travel boost surpassed the activity seen during the busy July school holidays.
Gen Z Embraces Cruises and European Summers
The growth in travel spending was widespread, touching all age groups except for millennials, who instead directed their discretionary funds towards sporting goods. The most dramatic increase was seen among Gen Z, defined as those born between the mid-1990s and 2010, where the number of people spending on travel skyrocketed by 20 per cent.
This was followed by a 14 per cent rise for both Gen X and baby boomers. This data aligns perfectly with the experience of Perth travel agent Sue Holmes from Carine Travel Bug in Duncraig, who reports that business has been "full on" since the State's borders reopened post-pandemic.
"People just love to travel; if they've got discretionary spend, they love to travel," Ms Holmes said. She noted that Europe is a particularly hot destination and that cruise bookings are also soaring. "A lot of younger people like that they can just unpack once and not keep checking in and out of hotels," she added, highlighting the appeal for the Gen Z market.
While the trend is positive, Dr Kiely offered a note of caution, stating, "It's important to caution that it's not everyone that will be in a position to travel, certainly a number of consumers are still feeling the pinch." Overall, Bankwest reported that the total spend volume rose by 3.1 per cent for the year, with the average transaction value increasing by 4 per cent.
