1Cover Travel Wrap up 2025

As 2025 draws to a close, one thing is clear: Australians haven’t lost their passion for travel, they’ve simply redefined it with sharper intent.

This report takes you inside the 2025 travel landscape, unpacking key trends, shifting behaviours, the growing influence of AI, and what all of this means for the year ahead. A new outlook for 2026 is taking shape, led by travellers who are more deliberate, value-focused, and committed to making every trip count.

Domestic travel continues to thrive, while the softer Australian dollar is steering many toward closer, better-value destinations across Southeast Asia and the Pacific rather than long-haul trips. At the same time, AI powered tools are becoming a staple in the planning process, helping Australians research smarter, personalise their itineraries, and prepare with greater confidence.

Unsurprisingly, the cost-of-living squeeze remains the single biggest force shaping where, when, and how Australians intend to travel in 2026. People aren’t travelling less; they’re simply travelling more selectively, making value-driven choices their number one concern.

Whether it’s finding the sharpest deals or discovering destinations that match your intended experience, both travel agents and AI have a role to play. But when it comes to safeguarding your trip, true protection is best left to travel insurance specialists.

Overall, 2025 paints a clear picture of a more thoughtful and purposeful traveller. As we head into 2026, Australians are focused on experiences that matter and travel protection they can rely on.

We invite you to dive into this report and explore the trends defining travel today.

The tech-travel interface

Artificial intelligence is quietly reshaping the way Australians plan and book their trips. From itinerary builders to flight-finding bots, more travellers are leaning on algorithms for ideas and inspiration, though not without hesitation.

According to the 1Cover findings, 41% of travellers have used AI to plan or research a trip. Among those who have tried it, AI is being used primarily for destination research (32%), price and accommodation comparisons (27%), and itinerary building (25%), suggesting that AI is becoming a practical starting point for trip planning rather than a full replacement for human guidance.

Trust, however, remains evenly split. Only 6% trust AI more than people, and 39% openly prefer human advice, while another 36% trust both equally. The biggest concerns revolve around inaccurate information (37%), privacy risks (32%), and the lack of human nuance or empathy.

Even so, curiosity is strong. A combined 49% say AI has made planning at least somewhat easier or faster, and half of all travellers would consider letting AI handle bookings, as long as they can review everything first. When it comes to travel insurance, two-thirds would accept an AI recommendation but would then go on to do their own research before purchase.

The trend is clear: AI isn’t replacing human planning (yet!), but it’s increasingly becoming an essential add-on, speeding up research, simplifying decisions, and offering travellers a broader starting point before they refine the details themselves.

Policy buying behaviour

Travel insurance patterns in 2025 show subtle but telling shifts in traveller behaviour. Domestic policy sales remain largely stable, indicating steady interest in local coverage despite wider travel fluctuations. At the same time, trip duration has stayed consistent at 20 days, showing that despite changes in destinations or travel frequency, the length of a typical trip hasn’t shifted significantly. When it comes to trip preparedness, most travellers (43%) purchase cover roughly seven days prior to departure, while a quarter purchase within one month of travel. 

Who’s Buying Travel Insurance?

1Cover’s purchase data shows that mature travellers and early retirees make up the largest share of policyholders, followed closely by mid-life travellers and families. Baby boomers were not far behind, while those in their twenties and early thirties represent a smaller portion of buyers.

Travellers also favoured total coverage, with most (86%) opting for Comprehensive policies that cover medical emergencies as well as cancellations, delays, and lost or damaged belongings.

Most policies are bought by individual purchasers (58%) and couples (28%), while families represent a smaller slice of the market (12%).

The picture suggests a stable core of mid-life, solo, and couple travellers with potential for growth for younger cohorts. Uptake among older travellers remains limited but could shift as travel patterns and policy offerings evolve.

On Deck: Cruise Travel & Insurance Outlook 2025

Cruising continues to be a popular choice with travellers booking longer voyages and planning well ahead. Policy sales jumped 17% on last year, and the average cruise now stretches to 19 days, with 44% purchasing cover within 180 days before departure. It’s a sign that cruisers are organised, intentional, and taking protection seriously.

When it comes to who’s sailing, half of all cruise policies are individual purchasers, while 28% are duo policy holders or couples. Families made up 12% of cruisers, highlighting how policy structures vary for different household types.

Age-wise, cruising remains firmly in the hands of mature travellers. Those aged 50–70 are the largest group at 50%, followed by travellers aged 36-49. Travellers aged 71+ followed closely at 18%, with 18's-35 following at 12%.

Where we’re sailing: domestic cruises continue to reign in popularity, with Australia topping the destination list again, followed by New Caledonia and the wider South Pacific. Some of the fastest-growing cruise routes for 2025 include the UK, Canada, Japan, France, and New Caledonia, displaying a shift toward culturally rich and long-haul journeys.

On the claims front, medical issues make up half of all cruise-related claims - a reminder that onboard care and overseas treatment can be costly. Cancellations (20%) and trip disruptions (14%) also feature prominently, while lost luggage and unexpected accommodation costs round out the list.

The overview? Cruisers are travelling further, planning earlier, and relying heavily on insurance to navigate the risks associated with ocean adventure