Bankwest’s monthly Spend Trends report has suggested the sky-high prices of air travel, which soared to new heights amid the pandemic, might finally be easing and enticing West Aussies back on board.
Bankwest’s Spend Trends tracks WA customer credit and debit activity to identify insights into community responses to economic conditions, with September data showing an interesting contrast in airline and road travel.
The number of customers spending on airlines surged 19 per cent year-on-year, with the volume of transactions also growing at eight per cent, while the average value of transactions fell significantly by nine per cent.
The figures revealed more unique customers booked flights and more flights in total were booked, but less money was spent, indicating prices in the sector could be easing.
And the data suggested air travel’s gain was road travel’s loss, with the number of customers spending at service stations tumbling 11 per cent year-on-year and the volume of transactions plummeting 23 per cent.
Even the average value of service station transactions fell significantly (-13%) year-on-year, which aligned with the State Government's FuelWatch figures, which showed a 14.99 per cent decline in prices in the year to September.
However, overall, the tale of contraction that has dominated 2024 continued for Western Australians, with the growth of airlines one of only two sectors of the 25 tracked to experience any significant year-on-year increase.
That led to a decline of 3.5 per cent in total customers transacting year-on-year, and a one per cent fall in transaction volumes, while the average value of transactions grew by six per cent.
The figures also suggested Millennials were somewhat of a sandwich generation, tightening the belt more than those generations around it, with both younger and older generations showing signs of economic growth.
Millennials, the age group most likely carrying the heftier financial responsibilities, contracted in the number of customers spending year-on-year (-4.1%) and was stable year-on-year for the volume of transactions (+0.4%).
Conversely, the number of Gen Z Western Australians spending grew 7.9 per cent year-on-year, with transaction volumes up 15 per cent, while Gen X (+2%) and Baby Boomers (+3%) increased transaction volumes year-on-year.
Bankwest General Manager Products Peter Bouhlas said: “Bankwest aspires to be Australia’s favourite digital bank, and our Spend Trends Report plays an important role in helping inform the pressures and priorities of customers.
“Our latest report for September reveals a shift in consumer behaviour, with more Western Australians opting for air travel as prices ease, while spending at service stations plummeted, highlighting a change in preferences.
"We can also see that, across generations, Millennials are particularly feeling the pinch, which provides insights into the challenges faced by the age group more likely shouldering the most financial responsibilities at this time.
“We know the current economic conditions could be challenging for those responsible for balancing the family budget, and we urge any customers experiencing financial difficulties to contact us as soon as possible.”
