Australian Holiday Season: Consumer Spending Outlook 2026
Friday, 13 November 2026
76% of Australians expect prices to be higher this holiday season, yet 73% plan to spend the same or more than last year to protect Christmas celebrations
70% say deals and discounts will influence when they shop, while 58% favour fewer but higher-quality gifts
Among consumers using AI for holiday shopping, 70% say it’ll make it easier but 56% expect to do most of their gift buying in-store
Affordability weighs on summer travel plans, with 39% of Australians not planning a trip
Experiences remain high on the Christmas wish list, with 43% prioritising screen-free gifts and 45% in-person activities
Australians are heading into the holiday season expecting to pay more, but the majority aren’t planning on cutting their spending, according to PwC Australia’s 'Australian Holiday Season: Consumer Spending Outlook 2026'.
The survey of 1,009 people found 76% believe prices across all items will be higher this year. However, almost three quarters (73%) intend to spend the same or more than last year, while only 24% will scale back.
While consumers are being more mindful of their finances, nearly half (48%) are willing to go over budget to create a special experience and maintain traditions.
PwC Australia’s retail and consumer industry leader, Brian Man, said shoppers are becoming more strategic in how they get value from every dollar.
“Many households are making their budgets work smarter, not harder, in the lead-up to Christmas. Despite rising financial pressures, Australians still want this time of year to feel special and they're making considered choices about where their money goes to protect those celebrations."
"This means prioritising quality over quantity, timing purchases around promotions, and using AI to research products and compare prices before heading in-store.”
Deals and quality shape the holiday shop
Discounts are set to have the biggest impact over when Australians do their holiday shopping this year, with 70% saying deals influence when they shop. Of those surveyed, 42% listed Black Friday and Cyber Monday as one of their main holiday shopping windows, compared with 38% who selected December.
But bargain hunting isn't limited to certain income groups and won’t come at the expense of quality. More than half (58%) said they prefer fewer, higher-quality gifts instead of purchasing more presents at a lower price.
“Shoppers are looking for the right product as well as the right price. They’re prepared to wait for promotions and take advantage of sales to get the items they want, without compromising on quality.”
AI takes on the research, but Australians still shop in-store
Amongst the Australians who expect to use AI for their holiday shop, 70% agree digital tools will make the process easier. Consumers are using the technology to research products (70%), explore gift ideas they hadn’t previously considered (65%), and compare prices for specific products (64%).
Despite the online support, Australians across all ages still value the in-store experience. More than half (56%) expect to do most of their gift shopping at physical retailers, while 69% prefer to see products in-person before making a final purchase.
“As AI does more of the homework, businesses need to consider how their brands show up in that research and how they carry that through to the in-store experience," said Brian Man.
"Retailers that combine trusted product information with seamless personalisation with be better place to turn AI-assisted discovery into sales."
Experiences and screen-free gifts top the Christmas list
Australians are looking beyond tech, with more prioritising gifts that encourage a break from devices and bring people together compared with last year's holiday season. The outlook found that 43% plan to give a screen-free present, 45% are interested in offline or in-person activities, and 39% favour shared meals over exchanging physical gifts.
For children, clothing and footwear remain the most popular option (46%), followed by gift cards and screen-free/hands-on gifts (31%) and technology devices (23%).
“Human connection is at the heart of the holidays for many Australians, as they place greater value on moments and memories with others. This survey points to a real appetite among consumers to put down devices over the break, reconnect face-to-face, and be more present with family and friends.”
Affordability weighs on summer travel plans
Higher costs and changing travel preferences are impacting holiday plans this year. Almost four in ten Australians (39%) say they aren’t planning a trip. Among those who aren’t travelling, 43% cite affordability, while 29% prefer celebrating at home and 37% would rather travel at another time of year.
For those hitting the road or taking to the skies, AI is playing a greater role in the planning process. 40% will use it to research and compare hotel or flight prices, 37% for travel recommendations and 25% to build an itinerary.
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