Cost of living

Inflation is now also eating into vacation pay

Instead of going on vacation, many have to use their extra salary to cover the increased cost of living.

(Bild: Marie Maerz - stock.adobe.com)

Following the massive price increases, more people are using their vacation allowance to finance everyday expenses. If possible, some of it is also being saved. According to the latest "Deloitte Summer Survey", only around half of those surveyed in Austria actually intend to spend a large part of their extra salary this year.

"A third want to save and spend the additional salary in equal parts," says Orsolya Hegedüs, Partner at Deloitte Austria, explaining the survey results.

"Although there are now signs that inflation is easing, the austerity measures make one thing clear above all: the uncertainty among the population remains and the burden of high costs weighs heavily," says the Deloitte partner.

Everyday things instead of travel
According to Deloitte, in addition to travel (55%), vacation money is mainly used for everyday purchases such as food or household goods (26%) and larger purchases such as buying a car or furniture (22%). Almost a fifth (19%) also used part of their additional salary to repay loans.

"More than a quarter of employees are using their vacation pay to pay for everyday expenses more often than before the inflation, with summer vacations taking a back seat," reported Harald Breit, CEO of Deloitte Austria. In a wealthy country like Austria, this is "an alarming result". It illustrates the cost pressure that is omnipresent for large sections of the population.

Long-distance travel on the decline
No great leaps are being made when it comes to vacations. According to the survey, summer vacations are mostly spent in Europe or Austria. Flights to overly distant destinations are often avoided.

Specifically, 71 percent of those surveyed want to explore European countries this year, while 39 percent also tend to spend their summer vacation in the Alpine republic. Only 14 percent are going on a long-distance trip.

"Belts are being tightened"
On average, the respondents themselves have a budget of 1730 euros available for their vacation. For children up to the age of 18 in their own household, an average of a further 778 euros would be planned.

"Even if some people can still afford to travel without any problems, many are tightening their belts," said Breit, referring to the high everyday costs.