Australians are favouring domestic holidays this winter, with cost-conscious families choosing getaways that won’t break the bank, according to new travel data.
While international destinations such as Bali and Japan remained popular during the April school holidays, figures from 1Cover Travel Insurance show a notable rise in domestic travel. The insurer recorded a 10 per cent increase in travel policies for Australian destinations compared to the same period last year — a trend expected to continue through the colder months.
Despite the continued appeal of international travel, 1Cover’s winter 2025 data shows Australia ranking second among its top 10 travel destinations, behind perennial favourite Bali. Other leading locations include the USA, Indonesia, Europe, Thailand, Canada, France, Greece, and New Zealand.
Data from the Australian Bureau of Statistics for March supports the trend, revealing New Zealand, Indonesia, and Japan as the top three destinations for short overseas stays. Overseas travel overall rose nearly 10 per cent compared to the same month last year.
Natalie Ball, Chief Operating Officer at 1Cover, said Australians are showing a strong commitment to travel, even amid cost-of-living pressures and currency fluctuations.
“This steady increase in traveller numbers suggests that Australians are continuing to prioritise travel despite rising costs and an unpredictable exchange rate,” Ms Ball said.
Affordable short-haul international destinations are also attracting growing interest. Travel to China, Thailand, Vietnam, and Singapore is on the rise as Australians look for value closer to home. At the same time, European nations such as Portugal, Austria, and Croatia are gaining popularity as travellers seek out less crowded, emerging destinations in response to overtourism concerns.
Cruise travel is also on the rise, with Australians venturing further afield for more adventurous itineraries.
“While domestic cruising and cruises in the Pacific remain strong, we are seeing a surge in Europe, Asia and North American cruises, in addition to cruises with Canada, Alaska and even Antarctica itineraries,” Ms Ball said.
On the domestic front, data from Wotif reveals that Australians are favouring coastal escapes for the upcoming July school holidays. Queensland dominates the list of most popular winter destinations, but a mix of regional cities and scenic locales round out the top 10:
Gold Coast, QLD
Cairns, QLD
Sunshine Coast, QLD
Yarra Valley, VIC
Newcastle, NSW
Fremantle, WA
Port Douglas, QLD
Wollongong, NSW
Kingscliff, NSW
Dandenong, VIC
Wotif notes that many Australians are drawn to locations offering warmer weather, family-friendly activities, and coastal relaxation without the need for long-haul flights or major expenses.
As Australians balance the desire for travel with budget considerations, domestic tourism is experiencing renewed momentum — and for winter 2025, local destinations are proving more attractive than ever.
