The number of Australians taking a winter holiday has declined rapidly over the past two years as cost of living pressures have eaten into household travel budgets.
Data from the Tourism & Transport Forum Australia showed that while the appetite for travel is stronger than ever, tough decisions are forcing families to save cash.
Just 54 per cent of Australians are planning a winter holiday this year, a significant decline from 74 per cent two years ago.
TTF Australia’s chief executive Margy Osmond said cost of living pressures have forced families to put their travel ambitions on the backburner.
“Australians haven’t fallen out of love with travel. In fact, holidays remain the number one non-essential spending priority across every generation,” Ms Osmond said.
“But many families are having to make much tougher decisions about whether they can afford to get away this winter.
“While it’s fantastic that the fuel excise relief has been extended through the school holidays, these figures show the tourism industry is still operating in a very challenging environment as households continue to come under pressure.”
Just 12 per cent of those indicating they had travel plans were going overseas while 23 per cent said they were heading within their own state.
Another 18 per cent said they plan on travelling interstate.
More than half of respondents said cost of living pressures have weighed on their winter travel plans.
This comes as inflation remains elevated at four per cent and interest rates have been lifted three times since the beginning of 2026.
About 16 per cent of respondents said they are taking shorter trips than originally planned, while 15 per cent are choosing destinations closer to home and the same amount are cutting back on accommodation.
Another 13 per cent said they have postponed or cancelled their holiday altogether.
Ms Osmond stressed the downturn in Australian holidays also rattled the travel industry and the destinations tourists typically flocked to.
“Every decision to postpone or cancel a holiday has consequences that extend well beyond the traveller,” she said.
“It means fewer visitors staying in accommodation, dining in local restaurants, visiting attractions and supporting businesses in communities right around Australia.
“That’s why giving drivers better access to real-time fuel price information through a nationally consistent platform would make a genuine difference to Australians considering a winter road trip.”
A mid-year Europe trip continues to be the most popular overseas winter holiday destination, with 18 per cent of international travellers heading to the continent.
About 14 per cent said they were going to New Zealand while many others were heading to relatively nearby destinations in Asia.
Eight per cent are heading to Thailand, seven per cent will visit Indonesia and another seven per cent will visit Japan.
Meanwhile, Australian soccer lovers are amongst the six per cent of international travellers visiting the United States as another six per cent head to the United Kingdom.