1Cover Travel Insurance has released its 2025 Travel Wrap-up, offering a snapshot of global travel patterns, traveller behaviour, and the key factors shaping Australians’ holiday decisions both this year and heading into 2026. 

To access the full 2025 Travel Wrap-up and explore the latest insights into Australian travel trends, go here.  

Aussie travellers are confident but cautious, says 1Cover 

As 2025 draws to a close, Australians are keeping their love of travel alive while evolving the way they plan, prioritise, and protect their trips. Findings from 1Cover’s report reveal a nation of travellers entering 2026 with a mix of optimism, caution, and greater preparedness. 

Key Insights: 

• Value-driven decisions: Cost of living is the primary influence on travel choices for 61% of Australians. Rather than travelling less, Australians are making more selective, value-driven decisions. 

• Domestic and Asian destinations surge: Domestic travel remains strong, while Asia and the Pacific are attracting travellers over long-haul trips to Europe. Japan is still booming, while the US and China have also seen a spike in interest.  

• AI as a travel tool: 41% of travellers have used AI for trip research or planning, primarily for destination ideas, price comparisons, and itineraries. Trust remains mixed, but AI is increasingly seen as a helpful starting point rather than a replacement for human advice (currently). 

• Travel insurance matters: Preparedness is now central to planning. Domestic policies remain steady,y and nearly half of all travellers are buying cover at least a week before departure. 
• Cruising remains a popular choice for Aussies: Policy purchases were up 17% YoY, with Australians taking cruises for an average of 19 days. Cruisers are more prepared with their cover than land-based trips, with 44% purchasing cover within 180 days before departure. The top cruise destinations include Australia, New Caledonia, and the South Pacific, with fast-growing interest in the UK, Canada, Japan, and France.

Outlook for 2026

Australians are expected to continue travelling more mindfully, balancing experiences, planning, and protection. Closer, better-value destinations will grow in popularity, and AI will play a supporting role in travel research and booking.

“As 2025 wraps up, one thing is clear: Australians haven’t ditched travel, they’re just doing it smarter, said Natalie Ball, COO of 1Cover Travel Insurance. “They’re planning with purpose, chasing value, and making every getaway count. From tech-savvy prep to choosing closer, better-value destinations and prioritising insurance, travellers are heading into 2026 more prepared, more confident and certainly more mindful.”

1Cover is a leading provider of travel insurance in Australia, committed to helping Australians travel with confidence through comprehensive coverage and insights into travel trends.

The report was created using 1Cover’s own sales & claims data, a nationwide survey and their own knowledge of the travel sector.

To access the full report and explore the latest insights into Australian travel trends, visit 1Cover 2025 Travel Wrap Up.

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