- 25% of Aussies will cut back on their trips in the next 12 months
- 47% will look for cheaper airfares
- 30% will seek bundled holiday packages
- 20% will jump on last-minute deals as they seek to make their travel dollar go further
Australians are feeling the pinch from a falling Aussie dollar and rising travel costs — and it’s changing how they plan their travel over the next 12 months. New research shows that two-thirds of Australians (66%) will either cut back on trips or seek cheaper options and deals. Nearly half (47%) will lock in cheaper airfares, while 30 per cent will seek bundled holiday deals to find savings, and 20 per cent will seek last-minute deals.
The findings were derived from a new survey of a nationally representative, independent panel of 1009 Australians, commissioned by award-winning travel insurance provider Insure&Go, to find out how ever-increasing overseas travel costs will impact their travel plans.
A weak Australian currency means that travellers receive less value when making purchases – or exchanging money – overseas, increasing the cost of their travel. Currently, one Australian dollar buys around 0.56 Euro, 0.64 USD and 0.48 GBP. At these rates, a 5 Euro coffee would equal AUD$8.93.
Even domestically, Aussies are finding no relief as airfares spike significantly and accommodation prices grow. A recent report has projected a 13.7 per cent year-on-year increase in economy-class airfares within Australia – compared with just 2.3-3.7 per cent in other continents.[1] Prices for accommodation domestically also grew 5.3 per cent in the 12 months to April 2025.[2]
David Mayo, Insure&Go Commercial & Marketing Director, says: “Our survey reveals that people are adapting quickly to the rising cost of travel and currency challenges. The appetite for travel is still strong, with just 25 per cent of Australians willing to cut back on the number of trips they take. A much higher proportion will get smarter about stretching their budget further – from finding bundled flight and hotel deals, hunting for airfare sales, or booking at the last minute.”
Insure&Go asked survey respondents what they will look for when hunting for deals. Cost is the top priority. Two thirds (69%) say they will be purely motivated by price and are willing to sacrifice flexibility in their travel dates and even accommodation options to make savings. This figure is largely driven by under-30s (at 72%) than 30-50-year-olds (70%) and over-50s (61%).
But prices aren’t the only priority – flexibility and inclusions matter too. Two in five (42%) say they’ll prioritise deals with flexible cancellation and refund policies, suggesting they’ll nab a bargain early, knowing they can cancel if their plans change. A similar proportion (43%) will prioritise deals with inclusions such as meals and tours, recognising that these add-ons can significantly impact the overall cost of a trip.
Insure&Go also found that over-50s are less likely to change their travel plans due to costs, with 35 per cent indicating they won’t change their plans, compared with 28 per cent of under-50s.
David says: “Over the next 12 months, value will be priority for Australian travellers, as they grapple with a low Aussie dollar, especially in Europe, Great Britain and the Americas. They will prioritise price more than the freedom of choosing their preferred dates and accommodation.
“But while it’s easy to get caught up in the excitement of a travel deal, it’s important to always check the fine print across all bookings and your insurance. Your travel insurance should cover cancellations, delays, all prepaid components of the deal, as well as any risky activities. While budgets are tight, it’s important not to cut corners on insurance, as a cheap deal can quickly become expensive if an unexpected event changes your plans or something goes wrong overseas.”
[1] https://experience.amexglobalbusinesstravel.com/air-monitor/2025/
[2] https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/monthly-consumer-price-index-indicator
Insure&Go’s survey results below:
| Survey answers | Total |
| Has a weak Australian dollar and rise in travel costs influenced your travel decisions for the next 12 months? | |
| Yes, I plan to travel less often | 25% |
| Yes, I’m choosing cheaper destinations | 16% |
| Yes, I’m seeking out more deals and discounts | 25% |
| No, my travel plans haven’t changed | 31% |
| No, I’m willing to spend more for the experiences I want | 3% |
| For future international travel, will you be looking for deals and bundled packages to save money and maximise value? | |
| I will look for bundled holiday packages to save money | 30% |
| I will search for discounted airfares and book accommodation separately | 47% |
| I will wait for last-minute deals to get the best price | 20% |
| I will customise my entire holiday itinerary for flexibility, even if it costs more | 16% |
| I will avoid international travel due to high costs | 11% |
| I will not be travelling internationally for other reasons | 13% |
| Would you choose bundled holiday packages, discounted airfares, or last-minute deals even if it meant less flexibility in travel dates and accommodation options? | |
| Yes, to save money or if the package offers good value | 67% |
| No, I prioritise flexibility and personal preferences | 33% |
| When searching for bundled holiday packages, discounted airfares, or last-minute deals, what factors most influence your decision to purchase them? | |
| Total cost savings | 69% |
| Flexible cancellation and refund policies | 42% |
| Inclusions (e.g., meals, tours, transfers) | 43% |
| Positive reviews and recommendations | 34% |
| Loyalty program rewards | 20% |
| Reputation of the travel provider | 22% |
| I won’t take up bundled holiday packages, discounted fares or last-minute deals | 8% |
For more information, please contact:
Sarah Ewenson | 0409 079 559 | sewenson@theideassuite.com.au
About InsureandGo
InsureandGo (InsureandGo.com.au) is one of Australia’s award-winning online travel insurance specialists. Since it was established in Australia in 2012, InsureandGo has covered more than 2 million Australian travellers. Owned by Europ Assistance, which operates in more than 200 countries, InsureandGo has an expansive, 24/7 global assistance network. InsureandGo Australia has won numerous awards and recommendations for its services including the 2024 Canstar Award for Outstanding Value in ‘Outstanding Value – International Travel Insurance’ for the second consecutive year and ‘Outstanding Value – Seniors Travel Insurance’ for the third consecutive year, the 2024 WeMoney Award for ‘Best for Seniors Travel Insurance’ for the second consecutive year, the 2023 Finder Award for Travel Insurance – Domestic, and the 2023 WeMoney Award for ‘Best for Value – Cruise Travel Insurance’. More information about InsureandGo’s awards can be found here: https://www.insureandgo.com.au/travel-insurance-awards/.
This insurance is underwritten by Mitsui Sumitomo Insurance Company Limited (MSI), ABN 49 000 525 637, AFSL 240816. Europ Assistance Australia Pty Ltd, ACN 140 219 594, AFSL 552106, trading as InsureandGo and other brands, holds a binding authority from the insurer, MSI to issue contracts of insurance and to deal with or settle claims on MSI’s behalf and as MSI’s agent. Any advice is general advice only and does not take account of your particular circumstances. Before purchasing, decide whether this product is right for you. Consider the PDS and TMD at www.insureandgo.com.au/policy-wordings.