Australians embrace smarter travel strategies in 2025

Australians are maintaining their passion for travel in 2025, but with a more strategic approach, according to 1Cover Travel Insurance's latest report. The 2025 Travel Wrap Up reveals that whilst travel remains a priority, Australians are opting for value-driven decisions, favouring domestic and Asian destinations, and increasingly using artificial intelligence (AI) for planning.

The report indicates that 61% of Australians are influenced by the cost of living, prompting them to make more selective travel choices. Domestic travel continues to thrive, with Asia and the Pacific gaining popularity over long-haul destinations like Europe. Japan remains a top choice, alongside rising interest in the US and China.

AI is becoming a significant tool for travellers, with 41% using it for trip research, price comparisons, and itinerary planning. Although trust in AI varies, it is seen as a valuable starting point rather than a replacement for human advice.

Travel insurance is also a key focus, with nearly half of travellers purchasing cover at least a week before departure. The cruise sector is particularly robust, with a 17% year-on-year increase in policy purchases. Australians are cruising for an average of 19 days, with popular destinations including Australia, New Caledonia, and the South Pacific.

Looking ahead to 2026, Australians are expected to continue prioritising mindful travel, balancing experiences with careful planning and protection. Natalie Ball, COO of 1Cover Travel Insurance, noted, “Australians haven’t ditched travel, they’re just doing it smarter. They’re planning with purpose, chasing value, and making every getaway count.”

1Cover, a leading provider of travel insurance in Australia, compiled the report using its sales and claims data, a nationwide survey, and industry expertise. The company has been recognised for its outstanding value and comprehensive coverage, ensuring Australians travel with confidence.
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