Outbound travel from Australia to the United States has dipped for the first time in months, while travel to Asia continues to surge, according to the latest Australian Travel Industry Association Travel Trends Report for May 2025.
The report reveals that overall outbound travel by Australians reached 12.05 million for the year ending April 2025, a 12.1 per cent rise year-on-year, driven by strong growth to Asia. However, travel to the United States declined by 6.2 per cent in April 2025 compared with April 2024 despite overall outbound travel rising 8.3 per cent in the same period.
Destinations including Vietnam (+28.5 per cent), Japan (+17.0 per cent), and China (+12.7 per cent) led the growth, reinforcing Asia’s prominence as the region of choice for Australian travellers. For the full year, Japan saw the strongest rise at +33.8 per cent, followed by China (+26.9 per cent) and Vietnam (+25.0 per cent).
“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,” ATIA CEO Dean Long said.
“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.”
Holiday travel continues to dominate outbound trips, consistently making up around 60 per cent of international travel, while travel to visit friends and relatives peaked at 34.8 per cent in February. Business and other travel reasons remain comparatively low.
On the inbound side, 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.
From an aviation perspective, 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.
“These trends demonstrate the critical importance of a resilient and responsive travel sector to meet shifting consumer behaviours,” added Long.
“We encourage Australians to always book through ATIA Accredited travel businesses to guarantee expert service, transparency, and peace of mind.”
