This paper examines young budget travelers in the context of the "backpacker" phenomenon in Australia. The origin of this form of travel is discussed and a contemporary social definition of backpackers is proposed. The definitional elements (a preference for budget accommodation, an emphasis on meeting other people, an independently organized and flexible travel schedule, longer rather than brief holidays, and an emphasis on informal and participatory holiday activities) are supported using two data sources. Data from Australia's International Visitor Survey, as well as a backpacker-specific study with 690 respondents, indicate that these young budget travelers exhibit characteristics which differentiate them from other visitors and that they are of economic importance to Australia's tourism industry.