Demand for overseas holidays this Christmas is transforming the travel landscape in Australia. More affordable airfares are drawing growing numbers of Australians abroad, placing pressure on local tourism operators. Booking data shows international trips now account for over half of all holiday plans in the busy December to January travel period, and bookings began ramping up earlier than usual.
Webjet, one of the country’s largest travel booking platforms, has recorded a 30% increase in Christmas bookings within a single month. Of those bookings, 59% are for international destinations. Bali continues to lead in popularity, followed by Tokyo, Auckland, Manila and Christchurch. These trends suggest Australians are prioritising lower costs and unique experiences when planning festive escapes.
The shift appears to be driven mainly by price. Webjet’s figures show that return economy fares for many popular overseas destinations have declined modestly compared to this time last year. Flights to Bali now average $998, about $20 cheaper than last year. Tokyo is priced at $1930, down $140, and Auckland flights are slightly lower at $942. These affordable fares are enticing couples, families and solo travellers, with couples making up 32% of all bookings.
However, this move towards overseas travel highlights challenges facing the domestic tourism industry. Industry groups say local operators are finding it difficult to compete with the value and luxury available across Southeast Asia. They argue that Australia’s tourism sector needs greater investment and new ideas to stay appealing, particularly when international alternatives are offering better deals. The concern is not just about promotion but also about the overall quality and sustainability of local tourism offerings.
Further complicating the outlook, industry leaders are closely watching China. Before the pandemic, Chinese travellers made up the largest share of Australia’s international visitor numbers. While arrivals are gradually returning, having reached 71% of 2019 levels by May, the sector is hopeful that improved government relations with China will boost demand. A full recovery from this market could bring in as much as $5 billion in extra revenue for hotels and regional tourism businesses across Australia.
