Germany Joins New Zealand, US, Australia, And Other Countries Facing Significant Decline In Holiday Tourism As Travelers Ditch Long-Haul Plans For Domestic Getaways: What You Need To Know

Published on December 3, 2025

Germany, US, New Zealand, and Australia are struggling with holiday tourism declines as travelers opt for value-driven domestic and regional getaways, driven by soaring airfares, longer travel times, and the complexities of international planning. With high costs and extended flight durations making long-haul trips less appealing, travelers are turning towards destinations that offer rich cultural experiences and scenic beauty without the hassle of long flights. The surge in demand for closer, more affordable destinations reflects a shift in how people are choosing to spend their holidays, opting for simplicity and cost-effectiveness over distant, expensive vacations.

As the year-end holiday season approaches, the landscape of travel has experienced a seismic shift. Long-haul destinations such as Germany, New Zealand, Australia, the United States, and France, once the epitome of festive vacations, are now witnessing a marked decline in bookings. Instead, travelers are opting for domestic getaways and closer, more affordable destinations, transforming the global tourism picture for the festive season.

This dramatic change is being driven by a mix of rising airfares, longer flight times, and more complex travel planning, which have pushed travelers to reconsider their holiday choices. With growing interest in shorter, more value-driven trips, let’s take a deep dive into how the travel industry is adjusting and the countries that are feeling the brunt of this transformation.

The Decline of Long-Haul Tourism: A Wake-Up Call for Global Destinations

In the past, winter getaways were often synonymous with exotic faraway destinations like the US, France, Germany, Australia, and New Zealand. However, this year, these long-haul favorites are seeing a sharp drop in holiday tourism.

Several factors are contributing to this trend. Skyrocketing airfares, coupled with longer flight durations and more intricate visa processes, are making travel to distant countries a less appealing option for many. Additionally, the rise of social media-powered travel inspiration, offering a plethora of beautiful and affordable destinations within reach, is shifting the focus from far-flung locations to more accessible places.

Countries that once saw millions of visitors during the holiday season are now grappling with a marked decrease in bookings. Here’s a breakdown of the countries that are experiencing the biggest drops:

• France: –54% decline
• Germany: –37% decline
• Australia: –54% decline
• United States: –34% decline
• New Zealand: –65% decline

The reasons for this are multi-faceted. High flight costs, the burden of long travel times, and complex planning have all combined to make these countries less attractive for holidaymakers seeking a simpler, more cost-effective travel experience.

The Shift Towards Domestic and Short-Haul Destinations

While long-haul tourism struggles, domestic travel is booming. In fact, Indian travelers are increasingly turning to domestic destinations for their winter getaways. The numbers are astounding: 51% year-on-year growth in domestic travel has been reported. From scenic getaways to culturally rich spots, the preferences of Indian travelers are clearly shifting.

Some of the most popular domestic destinations this year include:

• Varkala
• Indore
• Udaipur
• Mahabaleshwar
• Agra

These lesser-known destinations are seeing triple and even quadruple-digit spikes in bookings, far outpacing the metropolitan areas of Mumbai, Bengaluru, Chennai, and Kolkata, all of which have experienced declines in tourism.

Indian travelers are now prioritizing experiential and scenic destinations, opting for places that offer cultural richness, historical significance, and immersive local experiences. These destinations not only cater to the desire for a getaway close to home but also provide an authentic experience that does not require long-haul flights or complex planning.

The Surge of Short-Haul Destinations

In addition to domestic travel, short-haul international destinations are also seeing a major uptick in bookings. This shift can be attributed to several key factors:

1. Easier Visa Processes: Countries across Asia have relaxed their visa policies, making travel simpler and more accessible. This has opened up new opportunities for quick getaways without the stress of complicated paperwork.
2. Competitive Airfares: Airfares for short-haul destinations are far more affordable, allowing travelers to save money and use it for experiences at the destination rather than expensive flights.
3. Social Media Influence: Platforms like Instagram and TikTok have fueled a massive rise in demand for short-haul destinations, with people flocking to places seen in viral videos or travel influencers’ posts.

The top short-haul destinations seeing a massive surge in bookings this season include:

• China: +1800% increase in bookings
• Georgia
• Hong Kong
• Japan
• Thailand

Among these, China has witnessed the most dramatic spike, with a jaw-dropping 1800% increase in holiday bookings compared to last year. This surge is primarily attributed to the resumption of direct flights between India and China, which has made travel significantly more accessible, faster, and cheaper. With competitive fares, relaxed visa processes, and the rising social-media-driven interest in Chinese culture, China is now a top choice for Indian travelers.

Domestic vs. Long-Haul: The Key Drivers Behind the Shift

Let’s break down the reasons behind the movement away from long-haul trips in favor of more accessible destinations. Understanding these key drivers is essential for the tourism industry to adjust to the new wave of traveler preferences.

1. Rising Airfares

As the cost of air travel continues to rise, many travelers are opting for destinations that won’t break the bank. Long-haul flights, particularly to far-off destinations like the US, New Zealand, and Australia, are becoming prohibitively expensive, especially during the high-demand holiday season.

2. Longer Travel Times

Long-haul destinations are now seen as more time-consuming due to the extended flight hours, not to mention the additional layovers and connecting flights. For many, spending a significant portion of their holiday just getting to the destination is no longer appealing, particularly when the destination itself can be reached in a fraction of the time with a short-haul flight.

3. Complex Travel Planning

More complex travel logistics—such as obtaining visas, arranging multiple connections, and navigating different customs regulations—are now a major deterrent. Travelers are increasingly opting for destinations that offer simpler, more streamlined travel experiences, where the process is easy and quick.

4. Social Travel Trends

Social media is driving a significant shift in travel choices. The ease of sharing experiences and discovering new places through social platforms like Instagram has made short-haul destinations in Asia more desirable. Influencers and travelers posting beautiful photos from places like Thailand, Hong Kong, and Japan inspire others to follow suit.

How Destinations Are Adjusting to the Shift

In response to the significant change in traveler preferences, tourism boards and hospitality industries around the world are adapting to meet the growing demand for domestic and short-haul travel.

1. China: The resumption of direct flights between India and China has sparked a rapid increase in tourism. Chinese cities like Beijing and Shanghai, renowned for their rich history, culture, and culinary delights, are becoming more accessible, making them a prime choice for Indian holidaymakers.
2. Thailand and Hong Kong: With their proximity to India and well-established tourism infrastructure, these destinations are benefiting from the growing trend toward short-haul travel. Both countries are promoting local attractions, festivals, and cultural experiences that align with the interests of today’s travelers.
3. Japan and Georgia: Japan’s appeal lies in its unique blend of traditional and modern experiences, from ancient temples to cutting-edge technology. Meanwhile, Georgia is emerging as an exciting destination for its pristine landscapes, ancient wine culture, and vibrant history, all of which are attracting a new wave of Indian travelers.

The Future of Travel: Will the Shift Last?

It’s clear that the travel landscape is evolving, with the rise of domestic and short-haul destinations challenging the dominance of long-haul tourism. Whether this shift is temporary or marks a longer-term trend is still uncertain. However, the indications are clear: travelers are becoming more value-conscious, prioritizing shorter flights and simplified travel experiences.

In the coming years, we may see more countries focusing on developing their domestic and short-haul offerings, making it easier for travelers to explore new destinations without the hassle of long flights and high costs.

The holiday travel season of 2025 is shaping up to be unlike any before. Long-haul destinations like Germany, New Zealand, the US, and Australia are seeing sharp declines in bookings, while domestic travel and short-haul international getaways are witnessing a massive surge.

This shift is being fueled by a desire for simplicity, value, and experiential travel. As travelers seek closer, more affordable destinations, countries across Asia and within India itself are stepping up to offer a wide variety of rich, cultural, and scenic experiences. The days of long-haul vacations may be numbered for some, but the rise of domestic and short-haul destinations has opened up new horizons for the modern traveler.

Germany, US, New Zealand, and Australia are facing significant declines in holiday tourism as travelers choose value-driven domestic and regional getaways, prompted by high airfares, longer flight times, and the growing preference for more accessible, affordable destinations.

The future of travel is bright, more accessible, and filled with fresh, exciting options. Whether you’re planning your next getaway to Thailand, China, or a scenic retreat in India, there’s no shortage of destinations ready to offer the experiences you crave—without the hassle of long flights or high fares.