Most Australians still prefer domestic travel – insurer

Current travel trends revealed

Most Australians still prefer domestic travel – insurer

Travel

By Roxanne Libatique

Domestic travel remains the preferred choice for many Australians, with 60% of holidaymakers opting for trips within the country over the past year, according to a survey by Budget Direct Travel Insurance.

The trend, which became more pronounced during the COVID-19 pandemic due to international border closures, has persisted despite the availability of overseas travel.

Travel trends in Australia

The survey found that 51% of respondents took holidays lasting one to two weeks, while 26% went on shorter trips over a long weekend or standard weekend.

A spokesperson for Budget Direct said that domestic holidays remain an easy and comfortable holiday option for Australians, noting the country’s diverse range of destinations on offer to explore.

Holiday patterns remained relatively consistent across different age groups. Australians aged 18 to 75 took short-term domestic trips at similar rates, with those aged 38 to 47 taking the most weekend getaways (30%) and those aged 68 to 75 taking the fewest (20%).

For trips lasting one to two weeks, the survey found little variation, with 53% of respondents aged 18 to 27 and 48 to 57 opting for longer domestic holidays.

State-by-state data showed that New South Wales had the highest proportion of weekend travellers at 30%, while South Australia recorded the highest percentage (58%) of travellers taking one- to two-week holidays.

When it came to travel companions, 51% of respondents travelled with a partner, while 44% holidayed with family or relatives. Seventeen percent took trips with friends, 14% travelled solo, and 1% joined a tour group.

Despite the preference for local holidays, many Australians still planned their travel expenses carefully, with 70% saving in advance and the same percentage either staying within or under their budget.

Travel insurance considerations for international trips 

While domestic travel remains popular, the Insurance Council of Australia (ICA) advised those travelling overseas to obtain comprehensive travel insurance.

In a December 2024 statement, the ICA described travel insurance as an essential component of trip planning, comparable to carrying a passport.

A joint 2024 survey by the ICA and the Department of Foreign Affairs and Trade (DFAT) found that one in eight Australians had travelled internationally without insurance. The survey also revealed gaps in understanding of policy coverage, potentially exposing travellers to financial risks.

  • Some countries require documentation for prescription drugs. The survey found that 45% of Australians travelled with prescription medication.
  • Insurance policies differ in coverage for alcohol-related claims. Travellers aged 18 to 29 were more likely to face risks associated with alcohol consumption.
  • Most policies cover lost or damaged personal items, including smartphones, but coverage limits may apply. Travellers should check their policies for exclusions on high-value belongings.
  • Healthcare costs can be high in some destinations. Travellers are encouraged to confirm their policy covers medical treatments, particularly for activities such as adventure sports or motorcycle use.
  • Standard exclusions often include unlicensed motorcycle use, pre-existing medical conditions, and losses due to natural disasters. The survey indicated that many travellers were unaware of at least one common exclusion in their policy.

Travellers are advised to review their policy’s Product Disclosure Statement (PDS) to ensure they understand the scope of coverage. The ICA also recommends consulting resources such as Smartraveller to stay informed about travel risks and requirements.

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