New figures from the Tourism & Transport Forum Australia paint a sobering picture for the industry this winter: just 54% of Australians are planning a winter holiday this year, down from 74% only two years ago.

The culprit won’t surprise anyone. With inflation sitting at 4% and three interest rate rises since the start of 2026, household travel budgets are being squeezed hard. More than half of survey respondents said cost of living pressures have directly affected their winter travel plans.

But dig into the data and there’s a more nuanced story, one that matters for regional operators.

Travellers aren’t giving up. They’re trading down.

TTF chief executive Margy Osmond put it well: “Australians haven’t fallen out of love with travel. In fact, holidays remain the number one non-essential spending priority across every generation.” Instead of cancelling outright, families are adapting: 16% are taking shorter trips, 15% are choosing destinations closer to home, 15% are cutting back on accommodation, and only 13% have postponed or cancelled entirely.

Of those still travelling, just 12% are heading overseas, while 23% are staying within their own state and 18% are travelling interstate.

The opportunity for regional WA

For South West operators, “closer to home” is the phrase to focus on. When Perth families swap Bali for a road trip, regions within a few hours’ drive stand to win, provided they’re visible, well priced, and easy to book. Shorter trips also mean weekend packages and mid week deals matter more than ever.

The extension of fuel excise relief through the school holidays helps, and TTF is pushing for a national real time fuel price platform to encourage road trips.

The market hasn’t disappeared. It’s moved: shorter, closer, more value conscious. The operators who adjust their offer and their marketing to meet it will be the ones who hold their ground this winter.

Source: Tourism & Transport Forum Australia winter travel research, July 2026.