Gold Coast, Bali, New Zealand, Cairns, Portugal and Beyond Leading the Way as Domestic Escapes and Global Visitor Numbers Boom Beyond Expectations Amid Surging Demand for Affordable, Diverse Winter Travel Experiences

Friday, June 13, 2025

Domestic Travel Surge in Australia

As living costs continue to climb, Australians are increasingly choosing to holiday closer to home, seeking out affordable and convenient escapes rather than long-haul trips abroad. Recent findings show that more people are planning short domestic getaways, especially as the winter months roll in.

According to data from Wotif, some of the most popular local travel spots include the Gold Coast, Cairns, Sunshine Coast, Yarra Valley, Newcastle, Fremantle, Port Douglas, Wollongong, Kingscliff, and Dandenong. These areas have become top choices for their coastal charm, mild climates, and budget-friendly appeal, drawing both families and solo travelers seeking a brief respite without the hefty price tag of international travel.

This pattern is further echoed by the Australian Bureau of Statistics, which noted that short overseas trips are still happening—but the favored international destinations are those closer to home, such as New Zealand, Indonesia, and Japan. This mix of domestic and regional travel suggests that many Australians are balancing their wanderlust with practicality, opting for closer, more accessible adventures.

International Travel Trends

Although domestic holidays are surging, international travel is far from losing its allure. Australians continue to pursue overseas journeys, especially to nearby and affordable destinations. Among the favorites are Bali, Japan, Thailand, Vietnam, and Singapore—places known for their vibrant cultures, diverse food scenes, and relatively low travel costs.

In particular, Bali has experienced a strong upswing in popularity. Southern Cross Travel Insurance has reported a 43% increase in travel policies issued for Bali over the April school holidays. However, with this rise in visitors has also come a notable uptick in insurance claims, many related to gastrointestinal illnesses and scooter-related incidents. These figures underline the need for travelers to stay informed and cautious, especially when heading to destinations with differing safety standards.

Meanwhile, European travel trends are evolving. More Australians are starting to move away from traditional tourist-heavy cities and are instead gravitating towards less crowded yet equally enchanting destinations like Portugal, Austria, and Croatia. This growing interest in “emerging” travel spots reflects concerns around overtourism and a broader desire for more authentic and relaxed travel experiences.

Cruise Travel on the Rise

Another significant development in the current travel landscape is the resurgence of cruise holidays. Australians are demonstrating a renewed enthusiasm for cruises—not only within local waters and the Pacific—but also venturing further across the globe.

Cruises through Europe, Asia, North America, and even journeys to Antarctica are becoming increasingly popular. This trend suggests that travelers are no longer just looking for comfort and convenience but also adventure and uniqueness in their vacation experiences. Cruise lines are now expanding their offerings to cater to this demand, providing diverse itineraries that allow passengers to explore remote and bucket-list-worthy locations by sea.

Even as local cruise options maintain their strong following, the noticeable shift towards international cruise destinations signals a broader appetite for longer, more immersive travel that still retains the all-inclusive ease that cruises are known for.

Impact on the Travel Industry

These changing preferences among Australian travelers are shaping the travel industry in meaningful ways.

On the domestic front, regional economies are experiencing a boost in tourism, particularly in coastal and countryside destinations. This influx of travelers not only supports local businesses but also encourages further development in infrastructure, accommodation, and attractions.

For international markets, the trend pushes destinations to rethink how they attract Australian tourists. There’s a growing emphasis on offering value-for-money travel, including more competitive pricing, better deals, and a focus on lesser-known locations that promise rich experiences without the crowding. Places like Vietnam and Portugal are now actively benefiting from this shift, positioning themselves as cost-effective yet culturally rich alternatives to more conventional holiday spots.

Meanwhile, the cruise industry is being driven to innovate. As travelers look for novelty and adventure, cruise operators are responding with more adventurous routes, themed experiences, and long-haul voyages that go beyond traditional offerings. The interest in remote cruise destinations like Alaska and Antarctica highlights a rising desire for experiential travel—where the journey is just as important as the destination.

Looking Ahead

Australians are proving that they are eager to explore, even if that means adapting to economic pressures and changing global conditions. Whether it’s rediscovering their own backyard, exploring less-traveled corners of Europe, or boarding a ship to the far reaches of the Earth, their choices are reshaping the travel landscape.

For the travel industry, this presents both opportunities and challenges. The demand for affordable, authentic, and safe travel options is driving innovation, diversification, and a renewed focus on quality over quantity.

As the July school holidays approach and winter settles in, all signs suggest that these trends—favoring both budget-conscious exploration and adventurous long-haul travel—will continue to gain momentum. The travel sector will need to stay nimble, responsive, and imaginative to meet the evolving expectations of the Australian traveler.