Aussies, it seems, are sticking with tradition and sun-chasing sensibility. While Bali’s beaches, Japan’s neon glow and Vietnam’s street food symphony continue to seduce, the Yanks find it trickier to return the favour.
According to the Australian Travel Industry Association (ATIA), international travel by Australians rose a spirited 12.5% in the year to May 2025, clocking 12.21 million outbound trips. The lion’s share of that growth? Asia, naturally.
Leading the pack were Japan (up 32.4%), Vietnam (25.8%) and China (26.9%)—numbers that would make any tourism board pop a champagne cork or, in the case of Tokyo, pour another sake. These aren’t just holiday flings but full-blown love affairs with the East.
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Land of the Rising Sun, Rising Numbers
“Australians have rediscovered the joy of ramen-fuelled adventures and cherry blossom selfies,” said Nina Hedges, ATIA’s Director of Compliance & Membership, with a knowing nod to the cultural cravings of the modern traveller.
“Asia continues to shine as the preferred playground for Australian travellers,” she added. “With Bali, Tokyo and Ho Chi Minh City topping itineraries for millions.”
It’s a trend that harks back to the golden age of Aussie travel—the Bali holiday, almost a rite of passage; the Japan ski trip, once a niche fantasy, now mainstream; and Vietnam, a phoenix rising on the travel wishlist with its low-cost charm and rich complexity.
Meanwhile, in the Land of the Free…
Things aren’t quite so chipper for Uncle Sam. Sure, Australians still packed their bags for the US—a 4.8% uptick in the year and 8.0% jump this May alone—but the reciprocal affection wasn’t as robust. American inbound traffic to Australia slumped by 3.7% in May and managed only a limp 0.6% year-on-year increase.
“The USA remains popular with outbound travellers,” Hedges said, “but the muted inbound response highlights challenges in achieving a balanced two-way tourism recovery.”
It’s a sobering reality for a country once seen as the promised land of opportunity—and outlet malls. Whether it’s the strength of the Aussie dollar, the post-COVID visa drag, or simply a touch of Down Under fatigue, one thing’s clear: inbound US visitors are no longer lining up at Bondi in droves.
Domestically Speaking…
Back home, the old Melbourne-Sydney shuffle still takes the cake. Australia’s busiest city pair saw 811,371 seats flown in April 2025. But before anyone breaks out the champagne, it’s worth noting that this figure dipped 1.7% from last year—a sign that even business flyers are craving something new.
Across the broader domestic scene, capacity was a bit of a mixed bag: increases of up to 7.4% in some regions, declines of 6.6% in others. It’s proof, if any was needed, that Australians are creatures of habit—except when they’re not.
“Domestic travel remains steady but dynamic,” Hedges observed. “With route-by-route variations showing where Australians are flying and where capacity is shifting.”
In the Skies, a Familiar Tale
Qantas is still bossing the skies, maintaining a firm grip as the leading international carrier in March with 16.5% market share. Jetstar punched above its weight, climbing to 12.3% (up from 11.1%), while Singapore Airlines kept things steady at 9.0%.
This paints a clear picture: Australian and Asia-Pacific carriers continue to dominate, a trend that has been as consistent as a Vegemite breakfast since borders reopened.
Holidays Rule, But VFR and Biz Still Tick Along
The top reason for leaving the country was a good old-fashioned holiday—63.6% in October, and above 60% most of the year. Visiting friends and relatives (VFR, in travel-speak) held steady, especially earlier in the year, while business travel remained a quiet but consistent hum in the background.
If you’re booking any of this through a travel agency, Hedges has some advice: “Booking with an ATIA Accredited travel business remains the smartest way to travel, offering expert advice, peace of mind, and consumer protection.”
Old Habits, New Horizons
There’s comfort in tradition. Australians, ever the savvy travellers, are once again proving that when it comes to travel, East is best—and a bit of sunshine, sushi or pho never goes out of style.
Yet amid the excitement of boarding passes and passport stamps, the travel trade remains watchful. Balancing routes, managing inbound flows and ensuring business resilience isn’t just a holiday—it’s a full-time job.
Still, if the current trends are anything to go by, Australia’s love affair with Asia is far from over. And as for the US? Well, perhaps they’ll try a little harder next season.
By Susan Ng
