More than half of Australians are less inclined to visit the United States in the next few years, according to new research from Southern Cross Travel Insurance (SCTI), as cost pressures and political concerns reshape outbound travel intentions.
The study found 51 per cent of Australians who had previously wanted to visit the US are now less likely to do so. Overall, 35 per cent said there are destinations they are actively reconsidering.
The United States topped the list of destinations Australians are less likely to visit, followed by the Middle East (36 per cent) and China (28 per cent). Even Indonesia was flagged, with 20 per cent of respondents saying they are less likely to travel there in the coming years.
Politics was the leading deterrent, cited by 63 per cent of those avoiding certain destinations. Crime (42 per cent), high costs and health risks (both 32 per cent) and negative word-of-mouth (30 per cent) were also influencing decisions.
Cost remains the dominant factor in destination choice, with 66 per cent of Australians nominating it as the primary consideration. The political situation of a destination (48 per cent) and stable weather (44 per cent) also ranked highly.
Despite softening sentiment towards the US, it still ranked fourth on the list of destinations Australians most want to visit in the next 12 months, at 19 per cent. Japan topped the list at 31 per cent, followed by Europe (27 per cent), New Zealand (22 per cent) and South East Asia and the UK (both 17 per cent).
The research also highlights the continued impact of cost-of-living pressures. Two in three Australians (62 per cent) planning an overseas trip said rising living costs have affected their plans. To manage budgets, half are avoiding peak travel seasons, while 31 per cent are opting for cheaper airfares and 28 per cent are cutting back on dining and entertainment while abroad.
Of concern to the industry, 14 per cent of Australians admitted to travelling overseas in 2025 without travel insurance. The figure rises to 19 per cent among 18–29 year olds.
Jess Strange, chief customer officer at SCTI, said travellers are making trade-offs but warned against skipping cover.
“We’re seeing Australians make smart trade-offs to manage rising living costs, while still making the most of their holidays. But skipping travel insurance shouldn’t be one of them,” Strange said.
“In 2025, we paid out over $316,000 in claims for people visiting Japan, with an average claim cost of $1,251.”
Medical treatment and evacuation were the most common Japan-related claims, totalling $259,411. Individual cases included $28,822 for hospitalisation due to gastrointestinal issues and more than $18,000 for travellers who broke their legs.
“Medical issues and simple trips or falls are some of the most common and costly claims we see overseas. What might be a minor incident at home can quickly turn into thousands of dollars in medical bills abroad,” Strange said.
The Future of Travel 2025 research was conducted in November 2025 by Insights HQ, surveying 1,008 Australians aged 18 and over.
