Australians are choosing cheaper international trips over domestic travel due to high flight costs and inflation.

Australian travelers are increasingly opting for nearby international destinations like Bali, Auckland, Tokyo, and Manila over domestic trips this summer due to high domestic flight prices and the cost-of-living crisis, with some international flights now cheaper than domestic ones. Webjet data shows 54% of bookings are domestic, 36% international, and 10% trans-Tasman for summer 2026, as demand shifts toward affordable Southeast Asia and Japan. The company, rebranding from a flight comparison site to an AI-powered travel platform, is bundling flights, hotels, and tours into customizable packages to meet rising demand from younger travelers. Over half of Australian travel bookings still go through online or in-person agencies—more than in any other major market—reflecting complex travel needs. Webjet aims to double its transaction value by 2030, with $1.5 billion achieved in 2025.