RAA Travel data showing a sustained rise in bookings to close-to-home destinations points to a structural shift in where Australians are travelling – and the destinations absorbing that volume carry claims exposures and underinsurance risks that brokers and underwriters are likely to encounter more frequently as the trend continues.
RAA Travel recorded a 15% rise in bookings to close-to-home destinations over the past year, a segment it defines as New Zealand, Asia, the Pacific Islands, and domestic travel within Australia. New Zealand was among the strongest performers, with bookings up 17% over the same period. The pattern reflects a growing tendency among travellers to identify regional destinations that broadly replicate the draw of costlier or more distant ones. Within the travel industry this has been termed “destination duping.”
RAA’s booking figures point to several recurring substitutions its customers are making: Hong Kong for Dubai or New York, New Zealand for the Swiss Alps, Vietnam for France, and Fiji or Vanuatu for Hawaii. RAA general manager travel and distribution Gina Norman said the recalibration is driven by practicality rather than a wholesale retreat from ambitious travel. “People are simply becoming more thoughtful about where they can go to get an amazing experience,” Norman said, noting that the move toward regional travel was already apparent in booking patterns before the Middle East conflict added a further layer of hesitation among some customers.
Japan, Norman said, has absorbed a significant portion of redirected demand. “Japan has been the fastest growing destination for Australian travellers for several years because it offers cultural experiences, incredible food, ancient temples, neon-lit cities, and snow-capped mountains,” she said. New Zealand, she added, holds appeal for travellers seeking outdoor and high-activity itineraries: “There aren’t many places in the world that you can pack as much into a single itinerary as you can with New Zealand, especially those after raw and untamed adventure.” Europe has not dropped off the list entirely. Norman said long-haul appetite persists among travellers who are restructuring their trips rather than abandoning them. “Europe is still a massive drawcard as we head into our winter, and we’re finding great round-the-world fares for those still looking to enjoy Europe this year, with many taking an unplanned stop along the way to experience a new destination,” she said.
The redirection of travel intent is visible not only in where Australians are going, but in where they are actively choosing not to go. A nationally representative survey of 1,008 Australian adults conducted by Southern Cross Travel Insurance (SCTI) in November 2025 found that 35% of respondents identified destinations they plan to avoid in the coming years – figures that broadly corroborate the destination shifts RAA’s booking data reflects. The US drew the highest avoidance, with 51% of respondents reporting reduced inclination to visit. The Middle East followed at 36%, then China at 28%. Indonesia – historically one of Australia’s most visited markets – was also among the destinations respondents said they were less likely to visit. Political climate was the most cited deterrent at 63%, followed by crime at 42%, with cost and health concerns registering at 32% each. The destinations gaining from this redirection align closely with RAA’s data. Japan ranked first among destinations Australians most want to visit in the next 12 months at 31%, followed by Europe at 27%, New Zealand at 22%, and Southeast Asia and the UK both at 17%.
The same financial pressure reshaping destination choices is affecting decisions further down the trip-planning checklist – including whether to purchase travel insurance at all. SCTI’s research found that 62% of Australians with overseas travel plans said rising costs had altered those plans, with the most common responses being avoiding peak travel periods (50%), selecting lower-cost carriers (31%), and reducing in-destination spending (28%). A portion of travellers went further: 14% reported taking an international trip in 2025 without travel insurance. Among 18-to-29-year-olds the figure rose to 19% – a demographic that overlaps considerably with the travellers most drawn to the budget-accessible regional markets that RAA’s data shows are recording the fastest growth.
SCTI’s claims data offers a concrete illustration of the financial exposure travellers carry when visiting destinations that are currently drawing the heaviest Australian visitor numbers. The insurer recorded more than $316,000 in claims tied to Japan-based travel in 2025, at an average of $1,251 per claim. Medical treatment and evacuation made up the largest portion of that total at $259,411. The three costliest individual claims from Japan were $28,822 for a hospitalisation caused by gastrointestinal illness, $18,302 for a leg fracture sustained in a fall, and $17,867 for a second leg fracture. The RAA and SCTI data in combination identify a market where outbound volumes are concentrating into a tighter cluster of destinations – several of which carry documented and material claims histories.
