Price and proximity dictating overseas holiday choices with Australians putting Asia top

Our enthusiasm for a summer sojourn in Europe is cooling in favour of closer, cheaper destinations as travelling with cash becomes trendy again as a way to save on costs.

Australians’ embrace of the Euro summer has begun to cool in favour of “single hop” destinations in Asia.

New data from the Bureau of Statistics and Travelex shows Japan continues to attract Australian visitors in record numbers, along with perennial favourite Bali.

In the year to May 31, Australian visitors to Japan climbed 143 per cent on the previous corresponding period, with 683,000 short-term trips compared with 281,000.

Indonesia remained the most popular overseas holiday destination however, with almost 1.5 million Australians paying a visit, up nearly 400,000 on the previous 12 months.

Thailand, Singapore and Vietnam also saw strong growth in Australian holiday-makers, in a trend travel agents attributed to price and proximity.

Japan continues to attract Australian visitors in record numbers.

Australian Travel Industry Association chief executive Dean Long said the single flight destinations were booming all around the world as travellers tried to limit their time in the air.

“We’ve seen similar behaviour throughout Europe — those destinations that are one flight away have rebounded much more quickly,” Mr Long said.

“Unfortunately that’s why the Australian inbound market is still not back to pre-pandemic levels.”

Price sensitivity was also proving a key determinant in travel plans, with Travelex seeing strong demand for currencies that presented good value for Australians.

Robert Dempsey, Travelex head of marketing for Australia and New Zealand, said the Japanese yen had experienced the most significant growth this year.

“The year-on-year increase in transactions, reaching up to 80 per cent, is unprecedented,” Mr Dempsey said.

“Other currencies showing substantial growth include the South Korean won, Indonesian rupiah, Thai baht and Philippine peso.”

Olympic years often see a shift in visitor behaviour, with some expected to avoid Paris this month because of the Games’ impact on price and density. Picture: AFP

Conversely, Travelex noted that demand for the euro and British sterling had declined in the year to June compared to the previous corresponding period.

“The UK has now dropped out of the top 10 destinations Australians travel to, while US travel numbers remain lower than 10 years ago,” Mr Dempsey said.

However sales of euros were starting to pick up in July, he noted.

Other Travelex research revealed travellers were tightening their belts in other ways with the average length of holidays shrinking from 19 days in 2023 to 15 days this year.

More than half of travellers heading abroad were also seeking to save money on card fees by taking cash, with those in the under-25 age group the biggest users of cash for payments overseas.

Santorini in Greece is being passed over for cheaper Asian destinations.

Mr Long said travel agents continued to see healthy demand for Europe, aided by falling airfares and greater competition among airlines.

“For the first time in 10 years we have two European carriers serving Australia, in British Airways and Turkish Airlines, as well as Qantas doing non-stop Perth-Rome and Perth-Paris,” he said.

“Prices have come off to an extent, we’re seeing a $2000 differential on business class fares on average in November.”

It was not unusual for visitor patterns to “shift” in Olympic years, with some travellers expected to steer clear of Paris because of the Games’ impact on price and density, Mr Long said.

But any effect was likely to be short-lived as Europe continued to rate highly on Australians’ bucket lists, he added.