Rising airfares and accommodation prices for popular yet pricey holiday hotspots mean Australian travellers are seeking cheaper beach escapes domestically. And while it’s good news for lesser-known coastal towns, it also highlights that some of our most iconic destinations could be peaking in popularity.
Popular yet pricey holiday hotspots, such as Noosa, Byron Bay and the Mornington Peninsula, have been domestic vacay favourites for decades.
But lesser-known spots, like Yamba in NSW and Inverloch in Victoria, could reshape the Aussie holiday map as domestic travellers opt for lower-cost, less congested getaways.
Insure&Go’s survey found 86 per cent of Aussies would swap pricey holiday hotspots such as Byron Bay and Noosa for alternatives amid rising accommodation prices.
More than one-third (34%) say they will look for more affordable, lesser-known regional destinations with similar experiences for better value, while a further 52 per cent would do the same but still choose major holiday hotspots if the price is right.
Aussies would seek out alternative destinations to pricey holiday hotspots for lower overall costs (32%), less congestion and more space to relax (28%) and unique local experiences (28%).
It comes a recent report projected a 13.7 per cent year-on-year increase in domestic economy fares within Australia compared to up to 3.7 per cent on other continents, while road trips are up in Australia.
In the June 2025 quarter, domestic accommodation prices grew by an average 3.3 per cent on the previous 12 months.
The survey showed Aussies have a cap when it comes to accommodation price hikes with 87 per cent saying they would not tolerate climbs of 10–30 per cent.
These results line up with other recent research that shows Aussies are prioritising affordable destinations and travel options that offer value for money as regional tourism experts also call for more infrastructure investment to open up the regions to more travellers.
It’s an opportunity for travel advisors and wholesalers to look at packages that offer what clients want – lower-cost, less congested getaways and unique local and cultural experiences in destination.
