More than half (54%) of travellers reported spending extra on transfers, while nearly half increased their budgets for accommodation (49%) and activities (44%), according to a report from ING Australia.
Flights and transfers now take the largest share of holiday budgets at 27%, followed by accommodation (26%), food (20%), and activities (17%).
ING's Head of Consumer and Market Insights Matt Bowen said rising costs haven't dampened Australians' international travel plans, with holidays staying high on financial priorities.
"While the cost of travel is soaring, the desire for rich experiences is increasing regardless, showing a real desire among Aussie travellers for memorable returns on investments," he said.
The survey polled 1,027 Australians who travelled internationally for leisure in the past year, with results weighted to reflect the national population.
Domestic travel is also driving broader increases in holiday costs.
According to the latest CPI data, holiday travel and accommodation prices in Australia rose 3.0% in the 12 months to October 2025, up from a 2.0% increase the previous month, with domestic travel accounting for most of the rise.
Spending on recreation - such as sports and gyms - more broadly is also rebounding, posting a 3.2% annual rise - one of the most significant contributors to the overall inflation picture.
The most recent CommBank Household Spending Intentions (HSI) Index also showed a 0.6% increase in October after a 0.1% dip in September.
While cruise lines and airlines saw a fall in spending, gains were recorded in online travel bookings, tourist attractions, and accommodation.