Aussies Heading Overseas as Airfares Drop

Lower airfares are driving a surge in early Christmas holiday bookings, with Australian travellers booking 30% more flights for December and January compared to the same period last year. While international travel is rising, only 41% of holidaymakers are choosing to stay within Australia, creating challenges for local tourism operators competing with cheaper and more luxurious overseas destinations.

Webjet’s latest figures reveal a clear shift in travel patterns as Australians respond to slight airfare decreases across popular locations. The online travel agency reports that close to 60% of Christmas bookings are for overseas trips. Bali remains the top choice, followed by Tokyo, Auckland, Manila and Christchurch. These early results highlight how cost and overall value are now major factors in how people decide where to go.

Return flights are now slightly cheaper than they were last year, fuelling the move towards international travel. For example, the average fare to Bali is now $998, down from $1018. Flights to Tokyo have dropped by more than $100, now averaging $1930. Return fares to Auckland are averaging $942, slightly below last year’s price. Among Webjet users, 32% are travelling as couples, 28% are booking solo trips and families and group travellers make up 20% each of overall bookings.

This move towards international destinations brings new pressure to Australia's local tourism industry. Experts say many domestic travel operators are struggling to match the value and experience that destinations in the Indo-Pacific region can offer. Despite Australia's unique scenery and cultural richness, high service costs and a lack of innovation in the local tourism sector are making it harder to compete.

Some in the industry hope that renewed international diplomacy could help attract more inbound visitors. Before the pandemic, China contributed the largest share of overseas tourists to Australia. A full recovery of that market could bring billions in additional tourism revenue. However, the return has been slow, with just 71% of pre-pandemic Chinese tourism numbers currently back. Full recovery will depend on improved promotion, better regional access and a more stable political relationship.

Source: The Australian, Tourism Research Australia, Australian Bureau of Statistics

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