ABS reveals travel is truly back, but high prices are going nowhere

Couple happily pushing the trolley with their son at airport. Child enjoying sitting on luggage trolley while parents pushing it at airport.
By Zach Havard


Recent data from the Australian Bureau of Statistics (ABS) is concrete evidence that travel is back in 2023, but the Australian Competition and Consumer Commission (ACCC) says high prices are here to stay.

It comes as no surprise that the number of international arrivals and departures has been on a steep incline in the last six or so months, but given as many as 77 per cent of travellers still indicate a degree of uncertainty when it comes to overseas holidays in the wake of COVID, travel data has managed to bounce back to the same figures as February 2019 at 1.52 million departures.

1.3 Total overseas arrivals and departures – November 2012 to December 2022 (ABS)

With Chinese travellers not allowed to leave their home country until recent weeks other nations have filled the gaps in terms of arrivals. Unsurprisingly, it was our neighbours in New Zealand who led the way with 91,210 arrivals, followed by those from the UK at 55,410 and then the US at 51,220.

 

Short-term visitor arrivals, Australia – Top 10. (ABS)

A number that will be expected to jump massively as a result of the recent changes to Chinas COVID regulations is numbers of international students arriving in Australia. Although the numbers are up massively in 2022 compared to Australian educational institutions, especially Universities benefit massively from a yearly influx of Chinese international students.

12.1 Arrivals – International Students. (Supplied)                                                 

While this is all good news for prospective holiday makers, there is a silver lining in the form of airfares and it seems there is no end in sight.

Global flight capacity has continued to grow in the last year but travel costs are following the trend according to aviation analytics firm Cirium who reported a ticket to Europe is up 21 per cent on pre-pandemic levels.

Domestic flight costs are soaring as well which has prompted the Australian Competition and Consumer Commission’s (ACCC) to ensure they will be closely monitored.

“Airfares have risen due to strong demand for travel and constrained supply as airlines have scaled back their schedules in response to high jet fuel costs and operational challenges,” ACCC Commissioner Anna Brakey told the ABC.

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