Four out of five Australian families (84%) choose to travel during off-peak periods to avoid the price hikes associated with school holiday travel. And as cost-of-living pressures rise, domestic destinations are paying the price.
Big Red Group data reveals a 30 per cent year-on-year drop in recent school holiday travel bookings (30 June – 22 July 2025) and a seven per cent dip in average spend as families avoid peak travel periods due to cost-of-living pressures.
It tracks with recent Insure&Go research that found 84 per cent of Aussie families are skipping at least one school holiday period to avoid higher prices and almost one-third (30%) would take their kids out of school to save money on holidays.
Big Red Group President & Chief Growth Officer John Boris said the findings represent a significant shift in how Australian families travel with many choosing off-peak periods and international destinations, such as Bali and Thailand, that offer value for money, instead of school holiday travel.
He said the shift from traditional domestic destinations to budget overseas travel will affect Australia’s tourism landscape and local operators as the experience company, which includes Red Balloon, Experience Oz and Adrenaline, saw a massive YOY decrease in bookings for holiday hotspots such as Cairns (-47.6%), Port Douglas (-33.4%) and The Rocks (-43.9%).
“We’re seeing a clear shift in when Australians are choosing to travel. Many are now leaning toward off-peak periods in order to maximise travel savings, which is creating real ripple effects for operators in traditional school holiday destinations,” Boris said.
“Businesses that have long relied on predictable peak-season surges are now facing growing uncertainty.
“Such changes are a clear wake-up call for the industry with it increasingly necessary to rethink seasonality and how we spread demand more sustainably year-round,” he said.
