- 86% of Australians would swap hotspots like Noosa and Byron amid growing accommodation prices
- 87% would not tolerate price hikes of 10-30 per cent
Holiday hotspots such as Noosa, Byron Bay and the Mornington Peninsula have been favourites for decades, but lesser-known spots such as Yamba in NSW, Inverloch in Victoria and Queensland’s Stanthorpe could reshape the Aussie holiday map as many opt for lower-cost, less congested getaways.
A new national survey commissioned by award-winning travel insurance provider Insure&Go reveals 86 per cent of Australians are ready to swap domestic travel hotspots for lesser-known, cheaper regional escapes, as they seek affordability, quiet, space and new experiences.
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] In the June 2025 quarter, domestic accommodation prices also grew an average of 3.3 per cent on the previous 12 months.[2] That means a typical family could be paying hundreds more for the same holiday than they did just a year ago.
Through a survey of an independent, nationally representative panel of 1009 Australians, Insure&Go explored whether local travel hotspots might be peaking in popularity. It found that, in the next two years, 34 per cent of Aussies will look for lesser-known destinations with similar experiences as hotspot destinations. A further 52 per cent will also do the same but will keep the door open for popular hotspots if the price is right.
When asked the reasons for seeking out alternative destinations, one in three (32%) cited lower costs and 28 per cent want less congestion, more space to relax, and an equal 28 per cent want to experience unique local experiences and culture of a new destination.
Insure&Go also found out that Aussies have strong limits for accommodation price hikes – and more so among younger generations. Shockingly, nine in ten (91%) of under-30s said they’d rather walk away from a dream destination than swallow a 30 per cent price rise, with over a quarter (28%) drawing the line at a 10 per cent rise. Across all ages, just 13 per cent, on average, wouldn’t change destinations based on price, suggesting how cost-sensitive domestic travel has become.
David Mayo, Insure&Go Commercial & Marketing Director at Insure&Go, says: “Australians love their beach getaways, but accommodation costs are pushing a majority to explore many underrated gems across the country. We expect to see more price-conscious holiday-goers take a more creative and resourceful approach to booking holidays as they seek prices within their budgets.
“Our research shows affordability isn’t the factor; people are also motivated by less congestion and less noise. Our holiday time is precious – we like to return home truly rested and relaxed. We expect to see coastal and country areas that offer similar amenities to the big-name destinations growing visitation in the next two years.”
[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/may-2025
Insure&Go’s survey results below:
| Survey answers | Total | |||
| As accommodation costs for major regional holiday spots rise, would you consider travelling to lesser-known regional areas that give the same experience in the next 2 years? | ||||
| Yes, I will choose more affordable and less congested regional destinations | 34% | |||
| Yes, I will look for better value in lesser-known areas, but will still visit major holiday hotspots if the price is right | 52% | |||
| No, I still prioritise major holiday destinations | 14% | |||
| What’s the top reason you’d choose a lesser-known destination over a major destination for your next holiday? | ||||
| Lower accommodation costs, travel costs & lower overall prices at the destination | 32% | |||
| Less crowding and more space to relax | 28% | |||
| Unique local experiences and culture | 28% | |||
| Supporting local communities and businesses | 6% | |||
| What’s the maximum accommodation price hike you’d accept before ditching a major holiday spot for a cheaper alternative? | ||||
| Answer option | Under-30s | 31-50s | Over-50s | Total |
| 10% – I’m out if it climbs that much | 28% | 29% | 38% | 33% |
| 20% – that’s my limit | 49% | 53% | 41% | 47% |
| 30% – I’d grit my teeth up to there | 14% | 6% | 6% | 7% |
| I wouldn’t ditch a holiday hotspot for price | 9% | 12% | 15% | 13% |
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.