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The United States has officially slipped from the top of Australians’ international travel wish list, with new figures showing holidaymakers are instead choosing destinations that offer better value for money—and shorter flight times.
In May 2025, Indonesia overtook the US as Australia’s most visited overseas destination, according to the Australian Bureau of Statistics. More than 122,000 Australians travelled to Indonesia in a single month, compared to just under 98,000 to the US.
The shift marks a significant reversal from previous years, when the US consistently ranked as the top pick among Aussie travellers.
Rising costs push travellers to reconsider
The strong US dollar, rising on-the-ground costs, and steep long-haul airfares have pushed travellers to look for more affordable options closer to home.
“In the current climate, Australians are looking for holidays that don’t just deliver on experience, but also on cost-efficiency,” said Sally Tindall, Canstar’s finance expert.
“It’s no surprise to see more Australians bypassing big-ticket US destinations in favour of more budget-friendly escapes in Asia. When you factor in flights, accommodation and spending money, a week in Bali can come in at less than half the cost of a comparable trip to the US,” she said.
According to Skyscanner’s 2025 Travel Trends report, 43% of Australians are planning to spend more on travel this year, but they’re doing so more strategically. While Aussies are still eager to explore the world, many are keeping a closer eye on where every dollar goes.
The US isn’t out—but it’s losing ground
While the US hasn’t disappeared from travel itineraries entirely, demand has softened. The number of Aussies visiting the US rose just 4.8% in the past year—significantly less than the jumps seen across Asia.
Adding to the financial burden, the Australian dollar has continued to struggle against the greenback. This has made everything from coffee to hotel stays in the US more expensive. According to reports, a latte in New York can now cost upwards of AU$11—more than double what most Australians are used to paying at home.
Where Aussies are going instead
New data shows travel to Asian countries is booming. Vietnam, Thailand, Japan and China have all seen double-digit growth in Aussie arrivals over the past 12 months.
- Japan saw an increase of 38.4% in Aussie visitors year-on-year
- Vietnam climbed by 26.2%, while China jumped by 35%
- Krabi, Siem Reap and Busuanga are some of the fastest-growing destinations based on Skyscanner booking data.
Closer to home, Indonesia remains the top performer, driven largely by Bali’s ongoing popularity as a budget-friendly escape.
“Travelling to Southeast Asia offers Australians the chance to experience high-end luxury at mid-range prices,” Ms Tindall said. “Whether it’s a beachfront villa, street food tour or cultural day trip, you can get more bang for your buck—and come home without a financial hangover.”
If you’re planning your next overseas trip, it’s worth comparing total travel costs—including flights, accommodation, travel insurance, and daily expenses—across different destinations before you book. A little research upfront could mean a lot more left in your holiday fund.
