Australian Travel Plans Shift: New Zealand Overtakes Europe as Cost & Global Uncertainty Rise
Despite a slight dip in overall travel intentions, 67% of Australians are still planning a getaway this spring, but where they’re going – and how they’re planning it – is undergoing a significant transformation. A recent Tourism and Transport Forum (TFF) survey reveals a growing preference for closer-to-home and more affordable options, alongside increasing concerns about global instability, signaling a potential long-term shift in Australian travel behaviour.
The Rise of the ‘Perfect Balance’: New Zealand’s Appeal
Forget long-haul flights and hefty price tags. New Zealand has surged to become the top international destination for Australian travellers, eclipsing Europe’s popularity. TFF CEO Margy Osmond attributes this to New Zealand offering the “perfect balance” – a familiar, accessible international experience without the financial strain. This trend highlights a growing desire for value, particularly as household budgets tighten.
Europe Remains Popular, But Costs are a Factor
While New Zealand is gaining ground, Europe isn’t losing its allure entirely. ANZ data projects a $280 million spend on European travel this winter, a 10% increase year-on-year. However, this popularity is likely driven by pre-booked trips and a willingness to spend more, rather than a widespread surge in new bookings. The cost of a European holiday is undeniably a significant factor for many.
Domestic Travel Holds Strong, with a Focus on Staycations
For many Australians, the answer to expensive international travel is staying closer to home. A substantial 35% plan to holiday within their own state, with staycations gaining traction. This involves exploring local attractions, supporting local businesses, and enjoying the benefits of home comforts – a trend that benefits regional economies and reduces travel-related stress.
The Cost of Travel: The Biggest Hurdle
The most significant barrier to travel remains cost, with 44% of Australians citing it as their primary concern. This isn’t just about the initial expense of flights and accommodation; it’s a broader reflection of the cost-of-living crisis impacting discretionary spending. Australians are adapting by shortening trips and reducing overall expenditure, with 41% planning to spend less than $2,000 on their entire holiday.
Beyond Budget: Climate Concerns and Political Instability
While cost is paramount, other factors are increasingly influencing travel decisions. Climate concerns are particularly prominent among 25-34 year olds, with extreme temperatures deterring potential trips. More surprisingly, political considerations have risen sharply, from 2% to 6% as a barrier to travel. This reflects a growing unease about global uncertainty and its potential impact on travel safety and enjoyment.
The US Sees a Decline in Australian Tourists
The impact of political instability is particularly evident in declining interest in travel to the United States. Professor Sarah Dolnicar from the University of Queensland’s Business School points to perceived volatility in decision-making as a key driver, suggesting that Australians are actively avoiding destinations perceived as politically risky. University of Queensland research supports this trend, highlighting the importance of stability in travel destination choices.
Looking Ahead: The Future of Australian Travel
The current trends suggest a future where Australian travellers prioritize value, convenience, and safety. We can expect to see continued growth in travel to nearby destinations like New Zealand and Southeast Asia, alongside a sustained focus on domestic tourism. The impact of climate change and geopolitical events will likely become even more pronounced, shaping travel patterns for years to come. Travel providers who can adapt to these changing priorities – offering affordable options, sustainable practices, and flexible booking policies – will be best positioned to succeed.
What are your thoughts on the future of Australian travel? Share your predictions in the comments below!
