With international tourism flows now stabilised, Australian tour operators who once relied heavily on inbound guests are facing a new challenge: how to capture the attention — and spend — of wealthy domestic travellers who are increasingly demanding premium, experience-driven options.

While regional accommodation providers have seen strong growth since borders reopened, many tour operators are still playing catch-up. According to Tourism Research Australia, the reality is clear:

• Pre-pandemic, two-thirds of spend on group and package tours came from international visitors.

• Domestic travellers, already familiar with Australia, are less inclined to pay for mainstream tours and attractions.

• Price-sensitive households are choosing free or low-cost activities, making it harder for mid-tier operators to compete.

At the same time, the wealthiest segment of the domestic market is under-served. These travellers are 50% more likely to journey interstate and spend, on average, 80% more per person per night on domestic trips. Many have shifted budgets once allocated to first-class flights and overseas holidays into local experiences — but when those experiences don’t meet the standard of international luxury travel, the money is simply banked until their next overseas trip.

This presents both a challenge and a huge opportunity: to reimagine Australian tours through a luxury lens — creating premium experiences that match the expectations of high-net-worth travellers, keep their spend here in Australia, and position local operators for long-term growth.