Australians are Choosing the South

Greetings, Travel South Partners,

A few weeks back, I received a delightful email from one of Travel South’s Global partners, Penny Brand, whom many of you know. She was enthusiastic about how the region’s demand stayed stable. She wrote to Travel South’s leadership team: “Our clients are excited about the American South.” 

Her enthusiasm is also echoed in the leading indicators. First-intended address arrivals from Australia are up by 2% to the region, while the national trend is down by 3% this year through July. 

Of course, headwinds remain. International policy shifts, high U.S. prices relative to the exchange rate of 0.64, and accelerating competition from Asia, where perceived value is stronger, have all weighed on demand. Media coverage also had a role. Two months ago, an Australian journalist was struck by a rubber bullet live on air during protests in Los Angeles. The footage received considerable media attention in Australia. Fortunately, the journalist was not seriously injured. 

And yet, despite these challenges, there are bright spots for optimism. Let’s move to the good stuff.

Australians continue to prioritize travel. International airline capacity was 7.8 % above the same period last year. With Australians booking travel at least three to four months in advance, industry partners are already seeing it firsthand. Helloworld’s wholesale brands Viva Holidays and Ready Rooms recorded a 77 % increase in U.S. leisure bookings in the first half of July 2025, following 48% annual growth in FY2024–25. Looking ahead, international flight bookings over the Christmas holiday period are running 30% ahead of last year, with international bookings for late December and early January up 47%. 

Visa policies remain an important backdrop supporting growth. The ESTA visa waiver program and expansion of the Global Entry program continue to make it easy for Australians visiting for under 90 days. At the same time, other visa types, such as student visas and long-term travel,  will  include a US$250 (A$389)  “visa integrity fee.” Given the changing international travel policy, it is also no surprise that our internal research showed Australian travelers’ top queries were for both travel insurance and U.S. travel advice when searching for travel to the States this year. As a result, travel agents remain the top choice and influential, more than double the share of TikTok and AI tools alone. In numbers, 39% of Australians still rely on a travel agent to book their holidays, according to the PassportCard Australia. Earlier this year, Allianz Partners Australia also found that over 80% of Australians will take out travel insurance this year. Bottom line, travelers are looking for peace of mind when traveling internationally. 

Australians are turning to travel as an emotional necessity — a way to step away from reality and rediscover connection with themselves, loved ones, and the wider world. Urban List’s 2025 Travel Trends Report found that some seven out of ten Australians and Kiwis plan to travel overseas in the next 12 months. Not surprisingly, food is a deciding factor and central to travel experience and choice (80% say food and drink shape where they go, with food-focused content being the top driver). 

In some ways, culture seekers desire to disconnect from reality. They are seeking personal expansion, wishing to immerse themselves, connect with locals, discover hidden gems, and favor wellness-oriented experiences. In many ways, travel has become all about authentic and emotional connections with a desire to seek novelty and personal fulfilment. 

What does this mean for the South? Australian travelers are curious; their appetite for food, culture, wellness, and personal fulfillment positions the South well to attract this experience-hungry market. With increased air capacity, steady demand, and travelers seeking more personal and purposeful experiences, the Travel South region is well-positioned for Australians eager to explore our states. 

Y’all Are Welcome, Aussies (and Kiwis)! Always.

P.S. A quick reminder about  Travel South’s upcoming events in October, November, and December: The RTO Product Workshop in Franklin, Tennessee, the Michelin Guide Ceremony in Greenville, South Carolina, and the International Showcase in Kansas City, Missouri. 

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