Australians cruise closer to home as younger travellers fuel 43% surge

16/09/2026 - Media Release

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After a turbulent few years for international travel, Australians are increasingly turning to cruise holidays, with 1Cover data pointing to strong growth across both the number and profile of cruise-cover buyers.

New data from 1Cover Travel Insurance shows cruise policy sales increased 43% year-on-year, comparing January–August 2026 with the same period in 2025.

The age profile of cruise-cover buyers has also shifted. Under-50s now account for around one in three buyers, up from roughly one in four in 2025, while the number of 30–49-year-old buyers more than doubled.

At the same time, older travellers haven’t curbed their love for cruising. Cruise-cover sales among those aged 70+ also increased, while the average age of Australian cruise-cover buyers fell from 55.6 to 52.4.

What’s driving cruise boom

Natalie Ball, COO for 1Cover Travel Insurance, says several factors could be behind the increase in demand.

“Given ongoing global instability, we have seen hesitation around long-haul holidays and a slight softening in Euro summer trips. Cruising is offering Australians a way to holiday closer to home while still visiting multiple destinations. With accommodation, transport and much of the holiday included in one package, it’s a convenient option for travellers to keep their travel budget under control.”

The shift is evident in the destinations covered by 1Cover customers. Domestic cruise-cover sales increased 69% year-on-year, making Australian waters the company’s number-one cruise destination. Vanuatu also reached 2.4 times last year's level, while New Caledonia doubled. Indonesia (Bali) bound cruises also saw a 40% uptick.

Ball says the destination data suggests Australians continue to want international experiences, even as travel patterns evolve.

“We’re seeing strong demand across domestic and international cruises, with Vanuatu, New Caledonia and Bali all proving popular. It’s encouraging to see that growth spread across such a broad range of destinations.”

Cruise demand also accelerated sharply as the year progressed. Sales increased 10% year-on-year from January to April, before surging 94% from May to August, traditionally a peak season for Australians travelling to Europe and the Northern Hemisphere.

Ball says the timing of the increase could reflect changing traveller sentiment.

“What’s particularly interesting is how strongly cruise demand accelerated from May. That’s typically when many Australians head to Europe and the Northern Hemisphere, yet cruise cover continued to grow strongly, highlighting the growing appeal of cruising in the current travel climate.”

Cruise claims can quickly reach six figures

The growth in cruise travel comes as 1Cover continues to see significant costs when things go wrong. The average paid cruise-related claim averaged out at $5,570 in 2025, with recent claims reaching $399,328 for a serious illness requiring medical evacuation in Japan.

Ball says the figures highlight why cruise travellers shouldn’t overlook the importance of travel insurance.

“Cruising can feel like a very self-contained holiday, but when a serious illness or injury occurs, you can suddenly be dealing with medical treatment, evacuation from the ship or repatriation in another country. These claims show just how quickly those costs can add up, which is why having right cover is so important.”

 

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FOR FURTHER INFORMATION, PLEASE CONTACT:
Natali Mansberg, Content Marketing Specialist.
E: natali.mansberg@1cover.com.au | URL www.1Cover.com.au

About 1Cover Travel Insurance
1Cover Travel Insurance was founded in 2003. Today, it is one of Australia’s largest providers of online travel insurance. At 1Cover, we’re dedicated to providing all customers with exceptional cover and support. We provide cover to more than 1.5 million customers in both Australia and NZ.