• Three quarters of Kiwis plan to travel overseas in 2025, but cost misconceptions deter some.
• Australia and Asia are top destinations, with most travellers budgeting up to $5000.
• Those not travelling often overestimate costs, with half believing they need double the amount ($10,000).

While three quarters of Kiwis are planning to go overseas in 2025, new research suggests those staying at home feel priced out of travel, although cost misconceptions may be contributing to missed opportunities.

Of the 27% of Kiwis who aren’t planning international travel this year, 65% said they either don’t have the money to or believe it’s become too expensive, according to the latest figures from travel insurer Allianz Partners.

Allianz New Zealand managing director Kevin Blyth told the Herald that travel growth is generally even across New Zealand‘s demographics, but those earning $49,999 or less lacked the disposable income needed to afford it.

“Other than that, it seems to be that New Zealanders in general are still keen to – and up for – travelling.”

There’s been a notable shift in the types of destinations Kiwis are choosing to visit, with places closer to home growing in appeal compared to previous years.

The majority of Kiwis travelling this year have planned two-week trips, with Australia being the leading destination (28%) followed by Asia (18%).

Australia is the top overseas destination for Kiwi travellers in 2025. Photo / Getty Images

Just 8% of New Zealanders planned to visit Europe this year, down from 27% in 2023.

The number of Kiwis planning North America trips dropped to 4%, down from 7% two years ago.

A distinguishing difference between the travellers and non-travellers surveyed was that most of those planning travel only budgeted up to $5000, while nearly half of non-travellers think they needed to budget $10,000.

Blyth said the disparity reflects an assumption among non-travellers that you need more money than is necessary to travel, which can be boiled down to the current economic environment.

“There’s an awful lot of uncertainty .... inflation is real and people know that their food shopping is more expensive”.

While travel costs had increased “in some instances”, Blyth said growth and decline in certain markets was being driven by a mix of available deals and the strength of the New Zealand dollar.

“If you’re travelling to somewhere where the Kiwi dollar is not as strong [e.g. UK, US], you definitely need more spending.”

Cities like London, Barcelona and Paris have fallen in popularity among Kiwi travellers in 2025. Photo / Getty Images

“Whereas, if you go to Australia, you know what you’re getting with it, and if you go to Asia, you know that you’re getting good value for money there”.

The results of the report suggest the vast majority of Kiwis with disposable income “seem to have that real desire to go on holiday”, said Blyth, who noted the Kiwi psyche is primed for travel due to our isolation and large expat population.

For the Kiwis with trips booked and holiday leave approved, their main reason for travelling was to visit family and friends (45%).

Meanwhile, those without travel plans primarily wanted to travel for leisure (42%), with visiting family and friends the second-most chosen reason among the group (38%).

Blyth said the post-Covid “revenge travel” effect – where people were travelling more to recover lost time – has begun to fade, but the sheer number of Kiwis planning trips this year is a sign of how much New Zealanders value having the freedom to travel.

Other key trends

Covid‘s wide-ranging impacts on Kiwis’ travel plans had laid bare travel insurance’s value as a financial safeguard, Blyth said, in turn encouraging an uptake in those purchasing it.

84% of Kiwis said they planned to purchase travel insurance for their next trip overseas, up from 72% in 2022, which is comparable to Australia (82%), India (85%), Japan and Singapore (87%).

The focus for insurers now was teaching Kiwis about the implications of not purchasing it before their trip.

“It’s far more than Covid that you’re covered for and I think that’s where people need to focus.”

“If you’re injured up in Fiji, for example, and need an air ambulance out of there, that’ll probably cost you the best part of $120,000 ... there are huge costs to that.”

“I would hate for somebody’s travel insurance to be a GoFundMe page. It doesn’t seem to be a good way to plan if something happens.”

Meanwhile, social media is becoming increasingly important for planning travel, as Kiwis seek inspiration from online content and influencers more than ever before.

“I think it’s the ability to use the medium that you want to find out more,” Blyth said.

“Family and friends are always going to be able to tell you things that they know about, but your family and friends aren’t necessarily going to be as well-travelled [or] as widespread as your influencers ... on YouTube, Instagram, TikTok.”

Tom Rose is an Auckland-based journalist who covers breaking news, specialising in lifestyle, entertainment and travel. He joined the Herald in 2023.