For many, even short breaks or quick getaways are being delayed or downsized. Here Sophie Ryan (pictured below), Comparison Expert at iSelect, reveals what every travel agent needs to know about how and where Aussies are travelling.
Q: What do travel agents and tour companies need to focus on if Aussies are travelling overseas less than before?
A: Aussies haven’t lost the travel bug, they’re simply comparing travel costs and coverage more carefully to find better value for money.
Value is everything right now. Aussies are counting every dollar and that goes for how they plan and protect their trips too.
Even when you’re taking a trip in our own backyard, you never know when tours will be cancelled or bags might go missing and that same unpredictability applies overseas.
Travel agents and tour operators can’t afford a one-size-fits-all approach anymore.
Our research shows Boomers are driving domestic travel, Millennials are actively swapping international plans to save money and younger travellers are being hit hardest by flight disruptions and cancellations.
Those who tailor their offer to where each generation is right now are the ones who’ll win more trust.
Research shows:
- 27% of Millennials (31–45) chose a domestic holiday over international to save money in the past six months. The highest of any age group.
- 35% of Boomers (61+) are planning a domestic-only trip in the next six months, nearly double the rate of Gen Z.
- 19% of Gen Z (18–30) were forced to change or cancel international plans due to flight disputes or cancellations.
Q: What’s your view on whether the post-Covid travel boom is now over?
A: I wouldn’t say the boom is over, but it has shifted. The pent-up demand that drove the initial rush has settled into something more considered.
Aussies still want to travel, but they’re being smarter about when, where and how much they spend.
The desire to explore remains strong, showing a promising future for travel, while economic factors and confidence levels have certainly been influencing travel decisions for some.
The desire to travel hasn’t gone away, but the budget reality has become louder.
What our research does show is that nearly one in five Aussies have actively chosen a domestic holiday over an international one in the past six months specifically to save money. That’s not a boom, more a recalibration.
Research shows:
- 21% of all Aussies surveyed chose a domestic holiday instead of going overseas to save money in the past six months.
- 46% of respondents said they haven’t travelled at all in the past six months
- ABS data: Short-term resident departures from Australia were still below pre-COVID per-capita levels as at early 2026, despite nominal volumes recovering.
Q: So is domestic travel emerging as the “middle ground” alternative?
A: Domestic travel may be emerging as a ‘middle ground’ for Aussies who want to find that sweet spot between a long-haul international trip and staying home entirely.
Aussies could be opting for domestic travel instead because they may have more control over the total spend.
International travel comes with variables that can be hard to manage right now – airfares, currency fluctuations, unexpected overseas medical costs and cancellations are real risks and can be costly especially if they do not hold a suitable travel insurance policy.
While domestic travel insurance is also available, a local trip can remove some of the unknowns.
We are finding many Aussies are redirecting what they would have spent on flights and overseas experiences into the holiday itself.
That could mean opting for better food, or better accommodation. ‘Domestic’ does not have to mean ‘budget’.”
Q: Are younger travellers shifting back toward saving money rather than spending on travel?
A: The picture is more nuanced than a simple shift toward saving.
Our research suggests Millennials are the ones most likely to have swapped an overseas trip for a domestic holiday to cut costs.
Gen Z, meanwhile, appear to still be chasing international travel but are getting caught out by flight disruptions and cancellations at a higher rate than any other age group.
The financial pressure is real across both cohorts, but it’s showing up differently. Millennials are making deliberate trade-offs to stay within budget. Gen Z want to get out there, but too often the system is getting in their way.
What both groups have in common is a need for certainty. Whether it’s knowing their trip cost is locked in, or knowing they’re covered if something goes wrong, younger Aussies want to feel in control of their travel spend.
Research shows:
- 22% of Gen Z (18–30) are planning an international-only trip in the next six months, the highest rate of any age group
- 30% of Gen Z say they have been able to travel internationally as planned, also the highest of any age group.
Q: What does the future hold?
A: For many households, it’s no longer a question of where to go next, but whether travel is financially realistic at all right now.
What we’re seeing is a clear shift towards domestic and lower-cost options, as people try to stay connected to travel in whatever way they can without overextending their budgets.
