Travel Expenses 2026: How Australians Can Save on Holidays

After the pandemic-era slump, demand for both domestic and international travel has soared. Airlines and accommodation providers have responded with dynamic pricing models, often pushing prices higher during school holidays and popular seasons. According to the Australian Bureau of Statistics, average outbound airfare prices jumped 8.5% from 2024 to 2026, while domestic hotel rates are up 6.2% year-on-year.

• Fuel costs: Ongoing global volatility has kept jet fuel prices elevated, impacting both flight and car hire rates.

• Inflation: Broader inflationary pressures have driven up the cost of meals, activities, and even travel insurance.

• Travel demand: Pent-up demand, especially for Europe and Asia, is squeezing availability and inflating prices.

With cost-of-living pressures at home, many Australians are seeking ways to enjoy travel without breaking the bank.

Several government and industry changes have reshaped the travel expense landscape this year:

• New Passenger Movement Charge (PMC): From July 2026, the PMC for international departures increased to $75, adding to ticket costs for overseas travel.

• Stricter travel insurance rules: Some destinations now require proof of comprehensive insurance for entry, making it essential (and sometimes pricier) for all travellers.

• Expanded regional travel grants: The federal government has extended grants for travel to regional Australia, including subsidies for accommodation and tours in selected outback and coastal areas.

On the positive side, digital border controls and e-visas have made it easier and cheaper to process travel documents, especially for popular destinations in Southeast Asia and Europe.

Whether you’re planning a quick getaway or a once-in-a-lifetime adventure, these up-to-date strategies can help you keep costs in check:

• Book flights and hotels early— but not too early. Data from Skyscanner and Qantas shows that booking 2-4 months ahead delivers the best value for both domestic and international routes in 2026.

• Travel during ‘shoulder’ seasons. Avoiding peak school holidays and long weekends can save hundreds per person, especially on accommodation.

• Leverage loyalty programs and points. Many Australian banks have refreshed their rewards credit cards in 2026, offering boosted sign-up bonuses and flexible points transfers. Use them for flights, hotels, or even rental cars.

• Use price-tracking tools. Apps like Hopper and Google Flights now offer more accurate AI-based predictions for fare drops or spikes, helping you lock in the best deals.

• Take advantage of regional travel grants. Check state and federal government websites for up-to-date offers, especially if you’re considering a regional or remote holiday.

Case in point: The Smith family from Brisbane saved over $1,500 on a winter trip to Tasmania by booking six weeks in advance, using a cashback booking site, and stacking a regional accommodation grant for two nights in Launceston.

Budgeting for travel means looking beyond flights and hotels. In 2026, these often-overlooked expenses are catching out Aussie travellers:

• Foreign transaction fees: Many cards still charge up to 3% per overseas purchase—consider a fee-free card or pre-paid travel card.

• Airport transfers and luggage: Ride-shares and checked bag fees can quickly add up, especially for families or group travellers.

• Data roaming: With more destinations requiring digital check-ins or e-visas, a global roaming SIM or eSIM can be far cheaper than pay-as-you-go data charges.

Travel in 2026 may be pricier, but with the right planning and up-to-date knowledge, Australians can still enjoy rich experiences without financial stress. The key is to stay agile, use every available tool, and keep an eye on both policy changes and hidden costs. With a smart approach, your next trip can be memorable for the right reasons—without blowing the budget.