Is travel to the US on the rise or the slide? Fresh figures from the Australian Travel Industry Association (ATIA) reveal a nuanced story.
Whilst Helloworld reported seeing travel to the US surge in July, Flight Centre reported a slump in US bookings as one of the causes of its recent profit dip. ATIA’s latest Travel Trends Report, covering June and July 2025, helps explain the split.
US Travel: Up for the year, down for July
Australian trips to the United States climbed for the 2024/25 financial year to 744,410, up from 725,010 the year before. Yet July told a different tale, with visitor numbers down 2.5 per cent year-on-year.
Inbound travel painted the opposite picture. US visitors to Australia jumped 19.2 per cent in July 2025 compared with July 2024.
Inbound tourism and domestic aviation
Inbound travel to Australia saw a 6.1 per cent increase in the 2024/25 financial year, with most months showing positive growth. Strong increases were recorded from key markets including China, the UK, Japan, India, and Singapore. In July 2025, inbound travel surged by a huge 12.8 per cent to 743,200 travellers, with growth led by the UK, Singapore, Hong Kong, and the USA.
On the domestic front, seat capacity on major routes saw some shifts in June 2025 compared to June 2024. The Perth-Sydney route experienced a significant increase of 11.7 per cent in seat capacity, while popular routes like Gold Coast-Melbourne (-7.7 per cent) and Adelaide-Sydney (-6.9 per cent) saw declined.
Outbound travel and international aviation
Australian outbound travel for the year ending July 2025 increased by 10.6 per cent to 12.32 million travellers. The surge was led by destinations across Asia, with Japan (up 26.7 per cent at 913,200 total travellers year on year), China (up 25.3 per cent with 660,520 travellers), Vietnam (up 24.7 per cent with 498,740 travellers), and Thailand (18.1 per cent with 645,770 travellers) seeing the strongest increases. Indonesia remains the number 1 destination at 1,748,140 travellers, a 11.8 per cent increase year on year.
Destinations like the USA, the UK, and Fiji experienced modest growth over the year.
Total international passengers carried rose from 3.28 million to 3.44 million year-on-year to June 2025. In terms of market share for the year ending June, Jetstar and Cathay Pacific recorded the strongest gains year on year, Qantas held steady, while other major carriers, including Air New Zealand, Emirates, Qatar, Virgin, and Malaysia Airlines, experienced slight declines.
ATIA CEO Dean Long said: “Our latest report highlights a compelling two-way story. While the USA is clearly becoming a hot destination for inbound visitors to Australia, we’re seeing a contrasting trend with Australians favouring closer-to-home destinations in Asia.”
ATIA CEO Dean Long
“The remarkable 19.2 per cent jump in US arrivals in July is a testament to the strong appeal of Australia as a holiday destination and underscores the importance of a resilient travel sector to capture this demand.”
“The data is clear: Australians are driven by international experiences, with holidays accounting for over 50 per cent of all trips. The continued popularity of Asia, led by destinations like Japan, China, and Vietnam, shows a distinct preference for diverse, culturally rich travel that offers great value. This trend reinforces the need for our industry to remain responsive and agile to meet these shifting consumer preferences.”
“In an evolving travel landscape, it has never been more important to have the support and expertise of a professional. We strongly encourage all Australians to book their holidays and travel arrangements through an ATIA Accredited travel business. Our members provide expert service, transparency, and peace of mind, ensuring travellers are protected and supported every step of the way.”
AloJapan.com