Bali, Japan and Vietnam stay on top as our favourite destinations: ATIA Travel Trends Report

Indonesia (Bali), Japan and Vietnam continue to lead the way as Australia’s favourite international destinations, according to the latest Travel Trends Report from the Australian Travel Industry Association (ATIA).

For the year ending May 2025, outbound travel surged by 12.5 per cent to 12.21 million trips, driven by a strong appetite for travel across Asia. Standout growth included Japan (+32.4 per cent), Vietnam (+25.8 per cent), and China (+26.9 per cent), reinforcing the region’s continued dominance for Australian travellers.

In contrast, the USA saw a mixed performance. Travel from Australia to the USA increased by 4.8 per cent year-on-year and was up 8.0 per cent in May 2025 compared to May 2024. However, US inbound travel to Australia slipped by 3.7 per cent in May and remained flat year-on-year with a modest 0.6 per cent rise.

On the inbound side, 8.37 million international travellers arrived in Australia in the year ending May 2025, a 5.6 per cent rise on the previous year. China, India and Japan delivered the strongest growth, while the USA’s performance was subdued.

Domestically, Melbourne-Sydney retained its title as Australia’s busiest city pair, with 811,371 seats flown in April 2025. However, capacity on this route declined slightly by 1.7 per cent per cent year-on-year, reflecting broader fluctuations across key domestic routes where capacity changes ranged from +7.4 per cent to -6.6 per cent.

International aviation also saw continued reshaping. Qantas Airways remained the top international carrier in March 2025 with a market share of 16.5 per cent, while Jetstar grew its share to 12.3 per cent, up from 11.1 per cent. Singapore Airlines held steady at 9.0 per cent, highlighting strong performance by Australian-based and Asia-Pacific carriers.

Holidays remain the top reason for travel, peaking at 63.6 per cent in October and staying above 60 per cent for most of the year. Travel to visit friends and relatives remains a significant segment, especially early in the year, with business and other travel reasons making up smaller proportions.

“Asia continues to shine as the preferred playground for Australian travellers, with Bali, Tokyo and Ho Chi Minh City topping itineraries for millions,” ATIA director of Compliance & Membership Nina Hedges said.

“The USA remains popular with outbound travellers, but the muted inbound response highlights challenges in achieving a balanced two-way tourism recovery.”

“Domestic travel remains steady but dynamic, with route-by-route variations showing where Australians are flying and where capacity is shifting.”

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