Australians are increasingly choosing Asia over the United States for international travel, according to the Australian Travel Industry Association’s (ATIA) latest Travel Trends Report for May 2025.
The report highlights a significant rise in travel to Asian destinations, with Vietnam, Japan, and China experiencing substantial year-on-year growth. Vietnam saw a 28.5 per cent increase, Japan 17.0 per cent, and China 12.7 per cen compared to April 2024.
For the year ending April 2025, Japan recorded the strongest growth at 33.8 per cent, followed by China at 26.9 per cent and Vietnam at 25.0 per cent. These figures underscore Asia’s growing appeal to Australian travellers seeking diverse cultural experiences and closer destinations.
Decline in travel to the United States
Conversely, travel to the United States has declined. April 2025 saw a 6.2 per cent drop in Australian visitors to the US compared to the same month in 2024, despite an overall 8.3 per cent increase in outbound travel during the same period. This marks the first significant decline in US-bound travel from Australia in several months.
Industry experts suggest that factors such as high travel costs and changing political climates may be influencing this trend, prompting Australians to explore alternative destinations.
Holiday travel remains dominant
Holiday travel continues to dominate outbound trips, consistently accounting for around 60 per cent of international travel. Travel to visit friends and relatives peaked at 34.8 per cent in February, while business and other travel reasons remain comparatively low.
Inbound travel shows positive growth
Australia welcomed approximately 8.36 million international visitors in the year ending April 2025, a 6.7 per cent increase from the previous year. Growth was strongest from China (23.4 per cent), Japan (12.9 per cent), and South Korea (11.9 per cent), while arrivals from New Zealand and the USA held steady.
In April 2025 alone, international arrivals rose 8.1 per cent year-on-year, with significant increases from the United Kingdom (39.5 per cent) and China (27.1 per cent). However, arrivals from several Asian markets, including Indonesia, Japan, and Malaysia, experienced slight declines.
Airline market dynamics
Qantas Airways retained the largest market share of international passengers for the year ending February 2025, carrying 528,000 travellers and accounting for 15.8 per cent of the market. Jetstar followed with the most significant growth, increasing its passenger count to 401,000 and its market share to 12.0 per cent, up from 11.0 per cent the previous year. Singapore Airlines also experienced a rise, growing its share from 9.0 per cent to 9.4 per cent. In contrast, airlines such as Scoot Tigerair and China Eastern saw a decline in both passenger numbers and market share.
Overall, total international airline passengers grew from 3.21 million to 3.35 million year-on-year, reflecting broader travel demand recovery.
ATIA’s perspective
ATIA CEO Dean Long commented on the shifting travel patterns saying, “We’re seeing a noticeable softening in USA-bound travel by Australians, with a 6.2 per cent drop in April 2025 compared to the same month last year even as overall outbound travel increased.”
“Holidaymakers continue to drive outbound travel demand, accounting for around 60 per cent of all trips. The appeal of international experiences, especially across Asia, remains strong as Australians prioritise leisure travel.”
“These trends demonstrate the critical importance of a resilient and responsive travel sector to meet shifting consumer behaviours.”
“We encourage Australians to always book through ATIA Accredited travel businesses to guarantee expert service, transparency, and peace of mind.”
