Australians Spending Big On International Holidays As Overseas Travel Spend Jumps Nineteen Percent To Seven Thousand Three Hundred Ten Dollars

Australians are splurging more than ever on international holidays, with their overseas travel spend surging by 19% to an impressive $7,310 per trip. This significant increase reflects a shift towards greater expenditure on flights, accommodation, and activities, as Australians embrace the growing opportunities for international travel. The rise in holiday budgets underscores a strong post-pandemic recovery and a heightened desire for immersive, quality travel experiences.

Australians are increasingly splurging on international travel, with new research revealing that holiday expenses have risen by 19%, pushing the average holiday spend to $7,310 per person. This uptick is largely attributed to increased outlays on flights, accommodation, and various holiday activities, signaling a shift in how Australians approach their travel budgets.

According to a report from ING Australia, over half of the travelers surveyed (54%) indicated that they had increased their spending on transfers. This suggests that Australians are opting for more comfortable or convenient transportation options, such as private transfers, airport shuttles, and luxury transportation services during their international holidays. Transfers, once seen as a secondary cost, now make up a significant portion of holiday budgets, highlighting a growing preference for ease and convenience in travel logistics.

Accommodation costs also saw a notable increase, with nearly half (49%) of travelers choosing to allocate more funds for where they stay. This could be a response to the growing demand for higher-quality accommodations, from boutique hotels to luxury resorts, as Australians seek out more comfortable and personalized travel experiences. The trend toward premium accommodations is further supported by the rise of unique, experience-based lodging options, such as eco-friendly hotels, villas, and even private residences, as travelers prioritize memorable stays over simple, budget-friendly options.

In addition to accommodation, nearly 44% of travelers reported increasing their budget for activities, reflecting a growing desire for richer and more diverse experiences. Whether it’s exploring local cultures, indulging in adventure tourism, or engaging in guided excursions, Australians are spending more on unique and immersive experiences during their trips. This shift mirrors a broader trend in global tourism, where travelers are increasingly seeking experiences that go beyond typical sightseeing, favoring those that offer deeper cultural insights, adventure, or relaxation.

The breakdown of these holiday expenses reveals that flights and transfers are now the largest contributors to the overall travel budget, accounting for 27% of the total. This emphasizes the importance of air travel as a critical element of any international trip, particularly as flight prices have been fluctuating with global economic conditions and supply chain issues. Following flights and transfers, accommodation takes up 26% of the total holiday spend, with food and activities each accounting for 20% and 17%, respectively. The significant portion spent on travel logistics and accommodation underscores the growing importance of both the journey and the destination itself, as travelers seek both comfort and convenience.

While international travel is certainly driving the increase in overall holiday spending, domestic travel within Australia is also contributing to higher holiday costs. According to the latest Consumer Price Index (CPI) data, prices for holiday travel and accommodation within Australia have risen by 3.0% in the 12 months leading up to October 2025. This marks an increase from the 2.0% rise seen in the previous month, indicating a growing trend in domestic travel price hikes. Domestic travel, particularly during peak seasons, has become more expensive, reflecting higher demand for local holidays amid ongoing global travel uncertainties and changing preferences toward staycations.

The rise in domestic travel costs is primarily driven by the increased demand for both regional and major city breaks. Many Australians are opting for domestic holidays due to the convenience and reduced risks compared to international travel, particularly in light of fluctuating entry restrictions and the ongoing aftermath of the COVID-19 pandemic. This shift toward local travel has pushed up prices in some of the country’s most popular tourist destinations, with hotels, transportation, and recreational activities seeing price hikes.

Beyond holiday travel, broader spending patterns within the recreation sector are also contributing to rising costs. The latest data shows that spending on recreation, including activities such as sports and fitness, has increased by 3.2% year-on-year. This is one of the key factors driving inflation in the Australian economy. The pandemic years saw a surge in outdoor activities, gym memberships, and other recreational pursuits, and this trend has continued into 2025. Australians are increasingly investing in wellness and fitness, reflecting a broader global focus on health and well-being. This uptick in spending on recreation also highlights the growing importance of leisure and relaxation, both during holidays and throughout everyday life.

The most recent Household Spending Intentions (HSI) Index also reported a modest 0.6% increase in household spending in October 2025, marking a recovery from the 0.1% dip in September. The increase in spending is indicative of improving consumer confidence and a growing willingness to spend on discretionary items like travel and leisure activities. Despite economic challenges, Australians seem eager to prioritize experiences, particularly travel and recreation, as they seek to make up for lost time during the pandemic years.

Interestingly, while spending on cruise lines and airlines has seen a decline, other areas of the travel industry are flourishing. There has been a significant increase in online travel bookings, as Australians continue to embrace digital platforms for organizing their holidays. Tourist attractions and accommodation providers have also seen an uptick in spending, signaling a shift in how Australians are allocating their travel budgets. Instead of splurging on traditional forms of travel, such as flights and cruises, many are opting for local attractions, unique accommodations, and tailor-made experiences that offer greater value and personal connection.

Australians are spending more on international holidays, with travel expenditure jumping 19% to $7,310 per trip, driven by increased spending on flights, accommodation, and activities as travel rebounds post-pandemic.

Australians are allocating more of their holiday budgets to flights, accommodation, and activities, driven by a desire for more comfort, convenience, and enriching experiences. Both international and domestic travel costs are on the rise, with domestic travel seeing an increase in prices due to heightened demand. Despite some areas of the travel industry experiencing a dip in spending, overall holiday expenditure is climbing, as Australians prioritize unique experiences and greater personal satisfaction in their travel choices. As the global travel landscape continues to evolve, it’s clear that Australians are embracing a more experience-focused approach to their holidays, spending more than ever before.

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