New research, from Southern Cross Travel Insurance (SCTI) reveals that more than half of Aussies (51%) are now less inclined to visit the United States, as they become increasingly selective about where they holiday overseas, with political stability, cost, and safety playing important roles in destination decision-making.

The data shows more than three in 10 Australians (35%) say there are destinations they are less likely to visit in the next few years. Leading the list is the United States, followed by the Middle East (36%) and China (28%). Even traditionally popular holiday destinations, like Indonesia are not immune, with two in 10 Australians saying they are less likely to visit, instead turning to other destinations. 

When asked what the biggest deterrents were for avoiding certain destinations, nearly two thirds (63%) cited politics as their main reason. Crime (42%), high costs and health risks (both 32%) and negative word-of-mouth from other travellers (30%) were other common reasons. 

When choosing where to travel next, cost (66%) remains the most prominent factor influencing their decision, followed by the political situation of a destination (48%) and reliable, stable weather (44%).

Despite the increase in concerns around overseas travel, culture continues to inspire Aussie wanderlust. Music is the most common way Australians become interested in another country's culture (58%), followed by TV shows (51%), art (49%) and movies (43%), demonstrating that the set-jetting trend of 2024 is still alive and well.

Bucket list experiences continue to be a major motivator for Australians planning overseas travel. The most popular experiences include:

• Disneyland or Disneyworld (30%) 
• An African safari (20%)
• FIFA Football World Cup 2026 (17%)
• LA Summer Olympics 2028 (16%)

The cost-of-living crisis is another factor that continues to influence how Australians travel. Two in three Australians (62%) planning an overseas trip say rising living costs have impacted their plans. To save money, half are avoiding peak travel seasons, while others are opting for low-cost airlines or cheaper airfares (31%) and cutting back on dining and entertainment spend while on holiday (28%). 14% of Aussies admitted to travelling overseas without travel insurance in 2025 - a trend more prevalent among younger travellers, with 19% of 18-29 year olds travelling internationally without any insurance cover.

Jess Strange, Chief Customer Officer at SCTI said: “We're seeing Australians make smart trade-offs to manage rising living costs, while still making the most of their holidays. But skipping travel insurance shouldn't be one of them. Medical care, travel cancellations and disruptions can be incredibly costly, and travel insurance remains an useful safeguard for travellers no matter how big or small your trip is.”

When Australians do decide to splurge, they are prioritising experiences that add value. The most common indulgences include extending trips with extra nights or an additional destination, and increased spending on shopping (31%). This is closely followed by staying in luxury or boutique accommodation and booking unique, once-in-a-lifetime experiences (29%).

Topping the list of destinations that Aussies most want to visit in the next 12 months is: 

• Japan (31%), 
• Europe (27%) 
• New Zealand (22%)
• United States (19%) (even though there is a drop off in enthusiasm)
• South East Asia and the UK (both 17%)

While Japan continues to surge in popularity, Strange urges Aussies to remember the importance of having the correct travel insurance. “In 2025, we paid out over $316,000 in claims for people visiting Japan, with an average claim cost of $1,251,” said Strange.

The most common types of claims from travellers visiting Japan, for example, were medical treatment and evacuation claims, totalling $259,411 in claim costs. The three most expensive Japan-related claims included:

• $28,822 for a patient who was hospitalised due to gastrointestinal issues 
• $18,302 for a traveller who slipped and broke their leg
• $17,867 for another traveller who also broke their leg

Cases like this help drive home Strange's point: “Medical issues and simple trips or falls are some of the most common and costly claims we see overseas. What might be a minor incident at home can quickly turn into thousands of dollars in medical bills abroad, particularly in countries like Japan. That's why travel insurance should always be treated as a non-negotiable part of any trip,” said Strange.

The Future of Travel 2025 research took place in November 2025 and was conducted by Insights HQ. A nationally representative sample of 1,008 Australians aged 18 years and above took part in the online survey. 

For more information, please visit: www.scti.com.au

Ends

Download the full report

Southern Cross Travel Insurance is an Australian financial services licensee authorized to provide general advice about our products. As our advice is general in nature, we strongly suggest that customers read the Financial Service Guide and Product Disclosure Statement, including Policy Wording, before purchasing our products. The latest versions of these documents are available on our web site www.scti.com.au.

About Southern Cross ​​Travel Insurance 

Southern Cross Travel Insurance (SCTI) has over 40 years of experience supporting more than six million travellers worldwide.  
 
SCTI first launched in New Zealand in 1982, before beginning to partner with Australians in 2009. Since then, the insurer has been trusted by over 6 million travellers worldwide+, which includes providing peace of mind to 1.5 million Aussies.  

SCTI is proud to have won multiple awards for providing customers with great value and outstanding customer service, including: 

• International Travel & Health Insurance Journal Award 

Finalist – International Travel & Health Insurer of the Year 2024, 2023 

Winner – International Travel & Health insurer of the Year 2022  

• ProductReview.com.au Award 

Travel Insurance Award Winner – 2017-2020, 2023-2025

• Canstar Star Rating Awards 

Outstanding Value for Travel Insurance – International – 2017, 2022, 2024

Outstanding Value for Travel Insurance – Seniors 2022-2024 

Outstanding Value for Travel Insurance – Domestic 2022-2024

• Finder Travel Insurance Customer Satisfaction Awards 

Highly Commended for Value – 2025, 

Highly Commended for Loved Brand, 

Trusted Brand and Quality Service – 2024

• Finder Awards 

Best Travel Insurance Comprehensive 2023-2025 

Best Travel Insurance Seniors – 2023

Best Travel Insurance Value (Highly Commended) – 2023

• Mozo Experts Choice Awards 

Exceptional Value Medical Only Travel Insurance – 2024

Exceptional Value Annual Multi-Trip Travel Insurance – 2022 & 2024

Exceptional Value Comprehensive Travel Insurance – 2018

Exceptional Value Cruise Travel Insurance – 2018

• Australian Insurance Industry Awards 

Finalists for General Insurance Claims Team of the Year – 2022

• Sitecore Experience Award 

Honourable Mention – Digital Experience Transformation 2021 

• Mumbrella Travel Awards 

Finalists for Travel Marketing Team of the Year – 2022 

+Based upon the total number of travellers we have insured across the markets where we operate for all our travel insurance products from January 1995 to June 2024. 

If you have any further queries, please contact: 

Laura Sedgwick - 0451 041 705 

laura@sedgwickcommunications.com