Behind Australians' annual leave quotas and what they're doing with it

If you're travel-obsessed like the staff at Explore you will want to use all your annual leave each year for travel.

But we were surprised to learn one in three Australians use only half their annual leave to get away.

The research from Travelinsurance.com.au found one in five Australians choose not to travel while on annual leave at all.

Only 12 per cent use their full four-week entitlement to take an extended holiday each year.

What do you do with yours?

TravelInsurance.com.au CEO, Shaun McGowan, said while two weeks can be a solid break, many Australians could be missing out on the full benefits of travel.

"Taking two weeks is enough for a decent break, especially if you're heading overseas," he said.

"But if you're only using one week of annual leave, or none at all, you're likely missing the deeper benefits of travel, like the chance to properly disconnect, explore different countries and cultures, and return with a fresh perspective and ready to perform at work."

Of course, there are other things in life than travel. People could be staying at home due to cost of living pressures, life admin, or simply being strategic - like using half their annual leave for travel and the rest for unexpected events and Christmas - Mr McGowan said.

Older Australians, who may have more disposable income, were more inclined to take longer holidays, with Gen X the most likely to stretch their leave for travel to three weeks and Baby Boomers the most likely to use their full four-week entitlement for travel.

But then again, maybe four weeks of annual leave just isn't enough. A recent survey by Budget Direct showed the majority of surveyed Australians thought four weeks of paid leave was insufficient to take all of their intended trips or time off in a year.

A further 40 per cent said they were unable to switch off from work while on a personal holiday.

Then there are those who hoard their annual leave, perhaps for a big trip.

A recent report from HR software company ELMO showed over a fifth of Australian employees have racked up four weeks of unused annual leave or more.