Market – Australia & New Zealand

• Tourism Monitor Switzerland 2023
• Market Update November 2025

Australian visitor numbers achieved a record high in 2025. Train travel continues to grow significantly, with Australia now the 9^th largest market for Travel Switzerland, recording + 21% sales growth by the end of 2025.

While Australia has had a challenging economic climate impacted by inflationary pressures, travel remains a priority for discretionary spend in the market.  In fact, 43% of Australian travellers are planning to travel more in 2026, demonstrating the love of travel is as strong as ever.

In particular, the luxury sector continues to flourish in the Australian market.  In terms of global high-net-worth individuals (HNWI) based on Capgemini’s 2024 World Wealth Report, Australia was the third* highest growth market, pushing the collective wealth of HNWI Australians past the US$1 trillion-dollar milestone. (The highest it has ever been). (*India was number one and Italy number two). 

The number of HNWI’s in Australia has also grown. There are now 333,000 people that fit the bill, up 7.8% on 2023 number. Capgemini defines HNWI as having ‘investable assets of USD1 million or more, excluding their primary residence, collectibles, consumables, and consumer durables.’ Australia’s robust equity markets contributed significantly to the growth in individual wealth. Sydney is now ranked the 8^th richest city in the world and is tipped to make the top five by 2040.

Geographically this is a vast territory, however the majority of travellers and opportunities come from the urban areas of Sydney, Melbourne and Brisbane, followed by Perth and Adelaide. The territory also includes New Zealand, which is not to be overlooked, however given the current momentum from the Australian market against the ongoing recession in New Zealand, the primary focus of ST in 2025 will be on the Australian market.

Australia is not a market to be under-estimated. Partners working with AU/NZ are well recognised and supported for their investment in the region. 

Australia’s economy is poised to recover gradually in 2025 having likely experienced its slowest growth in 32 years in 2024 amid sticky inflation levels and elevated interest rates. A modest improvement is anticipated in economic momentum with GDP growth predicted at 2%, to be underpinned by rising household incomes as inflation finally subsides. Much depends on a potential rate-cut to mortgage rates which should this happen, is likely to see a rebound in positive economic sentiment and potential increase in discretionary spend. Any rate cut is not predicted until at least the second quarter of 2025.

Having highlighted the slow growth rate and impact of inflation in Australia during the past 12 months, it is important to note, that there is a significant segment of the community that is not so impacted by these negative factors. On the flip side, those with funds to invest, and those who are mortgage free have been able to capitalise on relatively high equity prices and a buoyant local stock market. So, it is fair to say, that Australia is very much in a period of a “two-speed” economy.

New Zealand’s stifling COVID-19 restrictions resulted in the country entering a period of economic stagnation and recession that is yet to abate. Continued inflation, interest rate rises, and low consumer spending resulted in low-to-negative economic growth from 2022 through 2024. The outlook for 2025 for New Zealand remains challenging, with GDP growth expected at less than 1%.

The travel trade is key to selling Switzerland in Australia and New Zealand. The Australian Travel Industry Association (ATIA) cites that 70% of long-haul travellers from Australia use a travel agent for at least part of their travel arrangements.

The travel trade distribution network is made up of the following:

• Tour Operators/Wholesalers
  – Products include group tours*, FIT, niche special interest & rail. (*Note there is a distinct preference
  for small group travel in the market)
  – Australian-owned as well as international companies (US & UK) with local offices.
  – New Zealand agents largely purchase through tour operators based in Australia.
  
• Retail Travel Agents
  – Flight Centre Travel Group and Helloworld are two main consortia, with numerous travel brands
  sitting under these companies. They have both store and fronts and online distribution channels.
  – Home Based Consortia – post the pandemic, there has been a rapid increase in the number of
  home-based travel agents. The two largest in the market being Travel Managers and MTA.
  
• Online Travel Agents | OTAs
  – Mainly operate on a B2C basis (although expanding into B2B).
  – The two largest Australian owned OTAs are Webjet and Luxury Escapes, followed by Trip A Deal.
  – High volume, invest heavily in consumer advertising and tactical campaigns
  
• Luxury Sector
  Numerous outlets, consortia and alliances, including:
  – Virtuoso – after the USA, one of the strongest performing markets
  – Luxury Travel Collection, Australia’s largest boutique luxury brand in AU/NZ with 65+ offices and
  240+ travel advisors
  – Signature Travel – a growing presence through Travel Managers
  – Numerous other independent luxury specialists

Given Australia is considered a valuable high-spending market, it is very crowded with travel suppliers investing heavily to work with the travel trade, offering everything from rebates and marketing spend to cooperative promotional campaign-type activity. The Australian travel trade is regarded as “high touch” meaning that they expect and value knowing the people behind the brands, with practical advice and assistance when needed.

With agents less accessible in office locations, events have become an essential way of working with and engaging the trade. Webinars remain popular as an effective use of time and resources. In any given week, a well-established travel agent would have up to ten invitations to consider from travel industry suppliers. This means that to get cut through with the trade, ST ensures that our promotional activities target their needs and interests and that we use a creative hook wherever possible.

The travel trade in Australia well regards Switzerland Tourism. We work closely and proactively with all sectors of the distribution network and are always happy to help our Swiss partners navigate the best possible opportunities in the local market to capitalise on the buoyant market demand we are currently experiencing.

The Australian market should be regarded as a relatively sophisticated, mature market, particularly in terms of the frequency of travel and knowledge of Europe as a travel destination. 

The main travel periods for Australians to Switzerland are from Apr to July, September to October and December-January. September is overall the busiest outbound month internationally for Australian travellers, so there is scope to steer during the Autumn season. Interest in pre-Christmas travel in December has also increased. Travel patterns for New Zealanders are the same, but on a much smaller scale.

In terms of booking patterns, February and March remain the biggest booking months of the year (excluding the ski sector, which is May-June). Australians will book flights to Europe up to 6-8 months in advance, however, there remains more spontaneity in the booking post the pandemic.

More than ever, travellers from Australia want experiences they can share with others with similar interests, and to enjoy being part of something bigger than themselves. Key factors influencing Australian’s choice of destination include the weather (66 per cent), followed by the attractions (65 per cent), food (63 per cent) and culture (59 per cent). Other factors determining holiday destinations are favourable currency and exchange rates (32 per cent), the cost of tourist attractions (32 per cent), and the cost of visas (17 per cent).When choosing where to go, cost still plays the most important role. The top factors determining holiday destinations are favourable currency and exchange rates (32 per cent), the cost of tourist attractions (32 per cent), and the cost of visas (17 per cent). It is not that Australians are necessarily looking for the cheapest, rather they want to make sure they got value for money or a “good deal”.

As mentioned in the market overview, the luxury segment continues to expand in Australia. It is essential to understand that luxury has become very much about the experience, be it a once-in-a-lifetime experience, a gastronomic dinner at a Michelin-star restaurant, or a private customised itinerary. It can also be an experience that is unique to a remote region or somewhere untouched by the tourism footprint. The demand for luxury travel emphasises the need for in-depth destination knowledge and expertise from travel agents to deliver personalised itineraries specific to their client’s individual needs. There is also a parallel need for Swiss suppliers to meet these specific customised requirements.

Taking into account all of the factors contributing to the travel behaviour of Australians and New Zealanders, as well as our own strategic priorities, ST will be focussing on steering travel into autumn and winter months, travel by train and hidden gems.  We anticipate the robust conditions in the local market to continue for Switzerland for the foreseeable future. 

In Australia and New Zealand ST is prioritizing the personas of Kris, Quinn, Max and Jo. Find more information about the personas here.