The cost of getting out of Australia has become a measurable brake on youth travel and Contiki is moving to remove one specific friction point. The brand will cover the full $412 Australian passport fee for eligible travellers who book a qualifying Euro 2026 trip before 25 December.
The move lands as new survey data shows passport cost is delaying, cancelling or reshaping overseas plans for a large share of Gen Z and Millennials. For travel sellers, it sharpens a familiar tension between aspiration-heavy demand and the up-front costs that quietly slow conversion.
The price tag stopping trips before they start
At $412, the Australian passport now carries the unwanted title of the world’s most expensive, and the cost is hitting young travellers at the very first gate. One in five Gen Z and Millennials cite the cost itself as a barrier to travelling overseas.
Fifteen per cent of young Australians do not hold a valid passport, placing about 1.4 million people outside the outbound market before flights, accommodation or tours enter the equation.
Price is already reshaping behaviour. Thirty-eight per cent say they have delayed, cancelled or reconsidered an overseas trip because of passport costs, even as overall appetite for travel remains high.
Ninety-four per cent still want to travel overseas. But twenty-three per cent do not have a passport at all, and 30 per cent say the cost of getting one stops them from booking.
Chief Customer Officer Toni Ambler said the research points to high intent paired with a narrow entry barrier.
“We know travel broadens minds, builds confidence, and creates lifelong memories,” she said.
“Covering the world’s most expensive passport is our way of helping young people take that first step towards the adventure of a lifetime – building on everything Contiki stands for in terms of making travel more accessible to young people.”
The price signal is also poorly understood. Half of young Australians did not know their passport is the most expensive in the world. Among those without one, 71 per cent believe it is overpriced.
Demand is not the missing ingredient. Documentation and cost are where momentum stalls.
Why Contiki is underwriting the passport cost
Contiki will now cover the full $412 passport fee for eligible Australians who currently do not have a valid passport and who book an eligible European 2026 itinerary before 25 December 2025.
From a market perspective, the play is tightly targeted. The passport cost is an upfront fixed expense that disproportionately affects first-time travellers. By underwriting that expense, Contiki effectively lowers the total cost of entry into the European market without touching its own base pricing.
It also reframes the conversion funnel. Instead of losing prospects at the document stage, the booking now becomes the primary commercial trigger.
How likely is the offer to convert?
Among young Australians without a passport, 85 per cent say they would book an overseas trip if a passport was provided for free. Many indicated readiness to travel within months.
That signal matters for 2026 European inventory that is already entering early sales phases. By anchoring the offer to Euro 2026 rather than near-term departures, Contiki also elongates the booking window while keeping the urgency intact with the December deadline.
The campaign effectively substitutes a documentation cost with a psychological green light. In an environment where discretionary spending remains fragile under broader cost-of-living pressure, removing a $412 barrier reshapes the commitment threshold.
“At a time when living costs are high and adventure feels out of reach, we want to give young travellers a reason to say yes to the world,” Ambler said.
“This initiative is about unlocking the freedom to explore, one passport at a time.”
For agents, the proposition is direct. A common early-stage objection disappears. The booking conversation shifts from affordability of documentation to itinerary fit, timing and group dynamics.
Europe 2026 as the commercial engine
The passport support is tied specifically to Contiki’s 2026 European programs, including European Adventurer and Greek Island Hopping.
These trips remain core volume drivers in the youth segment, built on multi-country routing, high social density and predictable departure cycles. For agents, they also bring operational stability through standardised inclusions, established land costs and consistent commission flow.
By removing the passport cost for eligible travellers, Contiki is effectively funding market entry for a tranche of first-time international customers who may otherwise sit dormant for another one to two years.
That has downstream value. Once a traveller has crossed the passport threshold, they remain active in the outbound market for future bookings long after the initial subsidy is exhausted.
Contiki’s move therefore operates at two levels. It stimulates near-term conversion for 2026. It also seeds long-term customer lifetime value beyond that first trip.
What this says about youth demand right now
The data reflects a cohort that remains highly motivated by international experience but increasingly constrained by upfront transactional costs.
Airfares, accommodation and on-tour spend remain visible barriers. The passport, however, operates as a sunk cost that feels separate from the trip itself. Removing it reframes the booking as a single financial decision rather than a two-stage commitment.
The research also indicates that perceived value matters as much as absolute price. The majority of young Australians without a passport believe it is overpriced. That perception alone suppresses action.
The mechanics agents need to know
The offer applies only to Australians who do not currently hold a valid passport.
The offer applies to new bookings only on 13 day or longer trips departing between 8 December 2025 and 31 December 2026. A cap of 200 redemptions applies, sharpening urgency around early conversion.
The saving can be combined with existing Ongoing Deals, including loyalty discount and Book with Friends. It cannot be stacked with other offers. Standard payment terms apply.
Single supplements apply.
It does not apply to special departures, interest group trips, pre and post accommodation or the Detour range.
Promo code entry is required at checkout.
From an agency workflow perspective, the value proposition is immediate. The agent controls the booking and triggers the credit. The passport cost reimbursement becomes a selling lever rather than an administrative afterthought.
KARRYON UNPACKS: Contiki is trading passport subsidy for guaranteed 2026 conversion and long-term youth pipeline access.
