New research from Southern Cross Travel Insurance (SCTI) also revealed that more than three in 10 Australians (35%) say there are destinations they are less likely to visit in the next few years.

Leading the list is the United States, followed by the Middle East (36%) and China (28%).

Even traditionally popular holiday destinations like Indonesia are not immune, with two in 10 Australians saying they are less likely to visit, instead turning to other destinations.

The Future of Travel 2025 survey took place last November and featured a nationally representative sample of 1,008 Australians aged 18 years and above.

When asked what the biggest deterrents were for avoiding certain destinations, nearly two thirds (63%) cited politics as their main reason.

Crime (42%), high costs and health risks (both 32%) and negative word-of-mouth from other travellers (30%) were other common reasons.

When choosing where to travel next, cost (66%) remains the most prominent factor influencing their decision, followed by the political situation of a destination (48%) and reliable, stable weather (44%).

The cost-of-living crisis is another factor that continues to influence how Australians travel.

Two in three Australians (62%) planning an overseas trip say rising living costs have impacted their plans.

To save money, half are avoiding peak travel seasons, while others are opting for low-cost airlines or cheaper airfares (31%) and cutting back on dining and entertainment spend while on holiday (28%).

Topping the list of destinations that Aussies most want to visit in the next 12 months is:

  • Japan (31%),
  • Europe (27%)
  • New Zealand (22%)
  • United States (19%) (even though there is a drop off in enthusiasm)
  • South East Asia and the UK (both 17%)

Bucket-list experiences include Disneyland or Disneyworld (30%), an African safari (20%), this year’s FIFA World Cup 17%) and the 2028 LA Olympics (16%).

“We’re seeing Australians make smart trade-offs to manage rising living costs, while still making the most of their holidays,” said Jess Strange, Chief Customer Officer at SCTI.

“But skipping travel insurance shouldn’t be one of them. Medical care, travel cancellations and disruptions can be incredibly costly, and travel insurance remains an useful safeguard for travellers no matter how big or small your trip is.”

Southern Cross Travel Insurance (SCTI)