New research from Southern Cross Travel Insurance (SCTI) has revealed there has been a sharp decline in Gen Z’s appetite for long-term work-abroad stints.
Interest in spending long periods working overseas has fallen dramatically by 22% from 78 per cent in 2024 to just 56 per cent in 2025.
The Future of Travel Report 2026 found that more than half of Gen Z still like the idea of working overseas, but the reality of cost-of-living pressures and an increasingly unstable global political climate has come home to roost.
The research also revealed that when it comes to travel essentials, convenience wins out over caution. Almost three quarters (70 per cent) of Aussies rank their phone and chargers as more essential than travel insurance.
Aussies ranked their phone and charger as their most important travel essentials (at 70 per cent) over travel insurance (only 47 per cent) and toiletries (43 per cent).
Attitudes shift among those planning to travel within the next 12 months, with travel insurance increasing in importance from 47 per cent to 54 per cent and good quality luggage rising from 30 per cent to 35 per cent.
The top reasons for taking out travel insurance included extreme weather events (73 per cent) and extreme natural events (71 per cent), followed by a likelihood of conflict (68 per cent) and political instability (63 per cent).
In these scenarios, peace of mind (70 per cent) is the leading motivator, closely followed by having good medical coverage (69 per cent).
SCTI paid out more than $3.8 million in medical and evacuation claims to Australians throughout 2025.
“In our experience, travelling without insurance is one of the biggest financial risks you can take overseas,” said Jess Strange, Chief Customer Officer at SCT.
“We regularly see claims where a simple accident, illness or flight disruption would have been financially catastrophic without cover.”
AI is also continuing to reshape how we plan and experience travel, with two in five (41 per cent) Australians who travelled in the past 12 months claiming they used AI to assist with their trips.
Among those who are planning to travel in the next 12 months, 40 per cent say they are likely to use AI to assist with planning or travel experiences, with younger Aussies leading the charge. 88 per cent of Gen Z and 84 per cent of Millennials say they already use AI to support their travel decisions.
“We want to remind travellers to always double-check that accommodation, attractions and experiences actually exist, confirm availability and opening hours, and book through reputable platforms. A few extra minutes of checking can prevent a holiday disaster,” added Ms Strange.
