Young Western Australians are packing their bags and hitting the skies, with Bankwest’s latest Spend Trends Report showing a Gen Z splurge on flights amid a cost-of-living crisis that continues to haunt other generations.
Bankwest’s Spend Trends tracks WA customer credit and debit activity to identify insights in community responses to economic conditions, with July data showing consecutive months of increased Gen Z spending year-on-year.
The number of young Western Australians spending on Airlines surged 24 per cent year-on-year in July, with all other generations having either declined or remained stable (Millennials -4%; Gen X +3%; Baby Boomers -2%).
It was a trend that flowed to other discretionary sectors for Gen Z, with a 16 per cent increase in customers transacting at Discount Stores and an 11 per cent growth in those spending at Electrical Appliance retailers.
Both industry categories again declined or remained stable for all other generations.
The discretionary splurge underpinned an overall growth of 5.8 per cent year-on-year in the number of Gen Z customers spending across all 25 categories, with Millennials (-4.4%), Gen X (-4.4), and Boomers (-5.7%) declining.
The growth in the number of Gen Z spenders was also accompanied by a strong increase in the volume of transactions year-on-year (+10%), while the average value of those transactions grew by 11 per cent.
That was in stark contrast to the experiences of other generations, with the year-on-year volume of Millennial transactions down (-1.4%), and the value growth a third (+4%) of their Gen Z counterparts.
The contrasting experiences also extended to the bowser, with the number of Gen Zs spending at Service Stations growing (+5%), while Millennials (-10%), Gen X (-11%) and Boomers (-11%) significantly declined year-on-year.
And while Millennials (-3%), Gen X (-3%) and Boomers (-4%) even reined in their spending at the essential Food Stores and Warehouses, Gen Z had eight per cent more shoppers hit the grocery aisles year-on-year.
The cost-of-living challenge facing Millennials, Gen X (both 22 of 25) and Baby Boomers (23 of 25) was laid bare in in the overwhelming majority of sectors experiencing a decline in the number of customers spending year-on-year.
Gen Z, by comparison, had just five categories experience a decline: Department Stores, Education, Other Transport, Recreation, and Repair Shops.
Bankwest General Manager Products and Digital Services Peter Bouhlas said: “Bankwest’s latest Spend Trends Report shows Gen Z is defying cost-of-living challenges, showcasing their resilience and adaptability.
"The increases in spending on Airline and Electrical Appliance retailers by young Western Australians could reflect a new wave of consumer confidence within this demographic, as they outpace other generations in key sectors.
"However, while Gen Z's spending has soared, this month's report reveals a divergence in spending behaviours, with other generations having to navigate the economic landscape with far greater caution.
"Millennials, Gen X, and Baby Boomers are all being far more selective with where they spend their money amid economic pressures, with significant declines in the number of those spending in almost all sectors.
"We can see from the data that the experience of Gen Z is not that of most Western Australians, and we encourage any customers concerned about their circumstances to reach out so we can support their unique position."
