Two-Thirds of Aussie Travellers to Stay Local Over Fuel Price Increase

Sydney - A significant majority of Australian travellers are prepared to abandon long-distance road trips in favor of local stays if fuel prices reach the A$3 per litre, a new research from the state's largest holiday group shows.

The study, released Thursday,.March 19, by Reflections Holidays, found that 62% of holidaymakers would alter their bookings to stay closer to home or reduce the number of stops on their itinerary should the psychological barrier of A$3 fuel be breached.

Despite these concerns, the survey of 9,000 members revealed a resilient travel sentiment, with fewer than 5% currently planning to cancel their holidays entirely.

"We are seeing a shift in how Australians approach their downtime," said Reflections Chief Executive Officer, Nick Baker.

"While they aren't giving up on their holidays, they are becoming much more strategic about how far they drive and how long they stay in one location to spread out the cost," he said.

The data highlights a growing trend of micro-touring, where travellers opt for shorter geographic leaps.

Respondents in the survey noted they were planning shorter breaks and staying longer in individual parks to mitigate the impact of the bowser on their household budgets.

In response to these pressures, Reflections Holidays, a certified social enterprise, has launched a first-of-its-kind Fuel Offset Voucher Program.

From now until April 30, guests staying two nights or more at any of the group's 40 New South Wales parks will receive a A$25 credit toward future stays.

"We hope this credit brings some peace of mind to our guests who are weighing up whether to travel in April," Baker said.

 "Family holidays are essential for staying connected, and camping remains the most affordable way to do that, even under the current financial pump," he added.

The program is designed to provide immediate relief for those traveling over the Easter break, a period typically characterized by high-volume domestic road travel.

The credits will be automatically applied to guest accounts in the first week of May.

The prospect of A$3 per litre fuel, once considered an extreme economic scenario, has become a looming reality in March 2026.

The primary catalyst is the ongoing maritime blockade in the Strait of Hormuz, a critical global chokepoint that handles approximately 20% of the world's oil supply.

The resulting surge in Brent Crude prices to over US$110 per barrel has trickled down to Australian pumps with unprecedented speed.

Domestically, the Australian government has attempted to mitigate the shock by temporarily lowering fuel quality standards to allow for higher sulfur content, a move intended to boost domestic supply by 100 million litres per month.

The Australian Competition and Consumer Commission (ACCC) however reports that retail prices in major cities like Sydney and Perth have already seen daily increases of up to 60 cents per litre since February.