There was a time when an American holiday sat firmly on the Australian travel bucket list somewhere between New York at Christmas and a West Coast road trip. But sentiment, like airfare, rarely stays static. New research suggests that the shine may be wearing off, with Aussies rethinking where the long-haul dollar goes next.
Fresh data from Southern Cross Travel Insurance (SCTI) points to a subtle but telling shift in outbound travel thinking. More than half of Australians surveyed 51% say they’re now less inclined to visit the United States over the next few years. Not cancelling outright, mind you, but quietly pushing it further down the wish list.
It’s less about one dramatic trigger and more about accumulation. Politics, cost, safety, perception, the modern traveller is weighing everything more carefully than they did even five years ago.
A more selective traveller emerges
The research shows 35% of Australians now have destinations they’re actively less likely to visit. The US tops that list, followed by the Middle East (36%) and China (28%). Even Indonesia, long considered a dependable standby for Aussie holidays, is seeing a softening edge, with one in five travellers saying they’re less likely to head there.
What’s driving the hesitation is revealing. Nearly two-thirds (63%) cite politics as the primary deterrent when ruling out destinations. Crime concerns register at 42%, while high costs and health risks each sit at 32%. Negative traveller word-of-mouth, once anecdotal, is now influencing 30% of decisions.
That alone says a lot about how travel decision-making has matured. The carefree, pre-pandemic traveller has been replaced by someone far more forensic.
And when Australians do decide where to go, cost still dominates. Two-thirds (66%) say price is the biggest factor, followed by political stability (48%) and reliable weather (44%). Romance hasn’t vanished from travel, but it’s clearly travelling in economy these days.
The bucket list isn’t dead, just more deliberate
Despite the caution, the appetite for meaningful travel hasn’t disappeared. If anything, it’s sharpened.
Bucket-list experiences remain powerful motivators. Disneyland or Disney World tops the aspirational chart at 30%, followed by African safaris (20%). Global sporting spectacles still hold sway, too, with the FIFA World Cup 2026 drawing interest from 17% of Australians and the Los Angeles Olympics in 2028 pulling 16%.
These are not impulse trips. They’re the sort people plan around emotionally and financially.
And culturally, inspiration still flows from familiar sources. Music leads the pack, influencing 58% of Australians to explore new destinations. Television follows at 51%, then art (49%) and film (43%). The so-called “set-jetting” effect may have peaked as a buzzword, but the behaviour is alive and well.
Cost-of-living reality reshapes behaviour
Of course, none of this exists in a vacuum. The cost-of-living squeeze continues to reshape travel habits in real time.
Two in three Australians (62%) planning overseas trips say rising household costs have forced them to make adjustments. Rather than abandoning travel, most are recalibrating.
Half are avoiding peak periods to save money. Others are chasing cheaper fares or flying low-cost carriers (31%). Some are tightening belts at the destination, cutting back on dining and entertainment (28%).
Where the industry tends to wince is insurance. Fourteen per cent of Australians travelled overseas without cover in 2025, rising to 19% among younger travellers aged 18 to 29.
Jess Strange, Chief Customer Officer at SCTI, sees the pattern clearly.
“We’re seeing Australians make smart trade-offs to manage rising living costs, while still making the most of their holidays,” Strange said. “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.”
It’s the sort of reminder that tends to land hardest after something goes wrong.
Spending where it matters
Interestingly, when Australians spend more, they do so with intent. The days of casual splurging appear to be giving way to something more considered.
The most common indulgence is extending trips, adding extra nights or an additional destination. Shopping spend also rises (31%), while boutique or luxury accommodation and once-in-a-lifetime experiences follow closely behind (29%).
In other words, fewer throwaway extras, more meaningful upgrades.
Japan steps confidently into the spotlight
If there’s a standout beneficiary of shifting sentiment, it’s Japan.
The destination tops the list of where Australians most want to travel in the next 12 months, attracting 31% of interest. Europe follows at 27%, then New Zealand at 22%. The United States still features, but at 19%, the cooling enthusiasm is unmistakable.
South East Asia and the UK round out the top tier, each at 17%.
Japan’s rise isn’t particularly surprising. Favourable exchange rates, strong aviation links and a cultural offering that balances novelty with familiarity have created a near-perfect alignment for Australian travellers.
But popularity comes with its own realities. Strange notes that claim data tell a sobering story.
“In 2025, we paid out over $316,000 in claims for people visiting Japan, with an average claim cost of $1,251,” she said.
Medical treatment and evacuation claims accounted for the lion’s share, totalling $259,411. Among the most expensive cases were a $28,822 hospitalisation due to gastrointestinal illness, an $18,302 claim for a broken leg, and another fracture costing $17,867.
They’re not dramatic incidents, and that’s precisely the point.
“Medical issues and simple trips or falls are some of the most common and costly claims we see overseas,” Strange said. “What might be a minor incident at home can quickly turn into thousands of dollars in medical bills abroad, particularly in countries like Japan. That’s why travel insurance should always be treated as a non-negotiable part of any trip.”
A quieter shift, but a real one
Taken in isolation, none of these figures screams upheaval. But together, they sketch a clear picture: Australians are entering a more deliberate era of travel.
They’re still travelling. Still dreaming. Still chasing moments that matter.
But they’re also weighing risk more carefully, questioning assumptions and stretching every travel dollar further than before.
For the trade, the message is straightforward. The traveller hasn’t disappeared; they’ve evolved. And understanding that evolution may be the difference between selling the dream and actually closing the booking.
The Future of Travel 2025 research was conducted in November 2025 by Insights HQ, surveying 1,008 Australians aged 18 and over.
More details are available at scti.com.au.
by Soo James – (c) 2026.
Read Time: 6 minutes.
About the Writer.
There’s nothing rehearsed about Soo James, and that’s precisely the point. Malaysian by heritage, Sydney by schooling, she arrived at UNSW to study Arts, then took a left turn into IT, not out of ambition, but curiosity. Somewhere among systems and schedules, she worked out what really held her attention: people, language, and the quiet spaces between them.
Writing followed naturally. Travel and lifestyle gave her room to observe, to listen, to notice the details others rush past. Soo writes the way good travellers move, watching the room before admiring the view, catching the gesture before chasing the headline.
At Global Travel Media, her stories don’t shout or sell. They linger. They slow you down, open a door, and gently suggest there’s more to see if you’re willing to look.
