Despite public commentary suggesting a downturn in travel to the US, current data from 1Cover Travel Insurance and official government figures indicate otherwise.
Australian travellers continue to take out travel insurance policies for trips to the US at levels exceeding last year’s volumes.
According to monthly figures from the Australian Bureau of Statistics (ABS), outbound travel to the US rose by 6% in May 2025 and was 8% higher than the same month in 2024.
Internally, 1Cover reported that its June sales for US-bound policies were 28% above June 2024 volumes, with July data continuing the upward trajectory.
Natalie Ball, chief operating officer at 1Cover, noted that the insurer has not observed any significant decline in interest for US travel coverage.
“Despite reports of changing travel habits, our data shows a steady interest in USA travel. We believe that strong cultural ties to the United States, in addition to popular sporting events and major tourist attractions have led to consistent travel numbers. Additionally, pent-up travel demand, post pandemic, is actually driving up US travel, rather than reducing it,” she said.
A combination of factors appears to be sustaining outbound travel to the US from Australia.
Sporting events such as the National Rugby League’s season opener in Las Vegas saw over 20,000 Australians in attendance earlier this year – an increase from 2024.
Interest in American football also continues to grow, with Australian athletes entering the NFL drawing fans across the Pacific.
Ski destinations in the US – including Aspen, Vail, and Park City – remain popular with Australians during their summer months, offering winter holiday options in the Northern Hemisphere.
Cruise travel is also playing a role in the growth. US ports such as Miami and Los Angeles are launching itineraries to destinations including the Bahamas, the Caribbean, and Alaska.
The rise in expedition-style cruising, particularly to more remote regions, is contributing to demand for travel cover with comprehensive medical benefits.
Ball cautioned travellers to the US to consider potential costs, particularly relating to medical expenses.
“Aussies visiting the USA should be particularly aware of the potential costs they could face while abroad,” she said. “The US healthcare system is among the most expensive in the world. Even minor medical treatments can carry unexpectedly high fees, and hospital stays can quickly become financially overwhelming. That’s why comprehensive travel insurance is essential to buy before you go.”
In addition, she highlighted that stricter visa and border enforcement measures are in place.
“While Australians can visit the US for up to 90 days under the ESTA visa waiver program, it’s critical to ensure your travel history doesn’t include any restricted countries. Make sure that all your documentation – from proof of return travel to accommodation details – are complete and accurate. Even minor inconsistencies can lead to you being denied entry at the border,” Ball said.
Meanwhile, travel to Indonesia – especially Bali – has recorded notable growth, both in terms of policy purchases and insurance claims.
Southern Cross Travel Insurance (SCTI) reported a 43% increase in Bali-related policies since the 2022/23 summer period.
This rise in cover uptake has been matched by a 50% increase in claims, which made up 16% of all SCTI claims filed in 2024.
1Cover also confirmed a 25% year-on-year growth in travel insurance sales to Indonesia. The current volume of cover purchased for Indonesian destinations is now 50% above pre-pandemic levels, with Bali remaining the most visited location.
ABS data from November 2024 showed Indonesia topping the list of overseas destinations for Australian travellers that month, drawing close to 135,000 visitors and surpassing both Japan and Thailand.
