Virgin Australia relaunches holiday packages as research shows strong demand for bundled travel

Travel demand is surging again as Australians embrace holidays at record levels, prompting airlines to rethink how trips are booked.

Virgin Australia has re-entered the holiday packages market, relaunching its bundled travel offering through a new platform that combines flights and accommodation in a single booking.

The airline has launched Virgin Australia Holidays in partnership with travel marketplace Hopper, giving customers the ability to book complete trips through one transaction, with curated domestic and international options.

The revival brings back a brand first introduced in 2003 before it was shelved in 2020 during the pandemic-related collapse in travel demand.

New research commissioned by Virgin Australia and YouGov highlights strong appetite for simplified trip planning, with half of Australians surveyed indicating they want easier, more time-efficient ways to organise travel.

The research also found 75 per cent of respondents would be more likely to book a package through their preferred airline if competitive deals were available.

Virgin Australia said the platform had been designed to reflect shifting consumer expectations as travel demand continued to climb.

“Virgin Australia Holidays marks an important step in expanding our offering beyond flights and into a more complete travel experience,” Virgin Australia chief marketing officer Libby Minogue said.

“With more Australians seeking value and convenience, we’re bringing together flights, accommodation and Velocity benefits in one seamless booking experience, delivering greater value and at a time when cost of living remains front of mind.”

The new service offers bundled deals across selected destinations including Bali and Cairns, with limited-time promotional packages available until 11.59pm AEST on May 27 for travel between July 15, 2026 and March 16, 2027.

Introductory offers include Bali packages from $745 per person for return Economy Choice flights from the Gold Coast to Denpasar, plus four nights’ accommodation, based on two travellers. Cairns packages start from $820 per person, including return flights from Brisbane and four nights’ accommodation.

Velocity Frequent Flyer members will be able to earn and redeem points, as well as receive Status Credits, on eligible flights booked within package deals.

The relaunch comes amid a broader surge in demand for holidays and tourism across the country.

Australians continue to travel overseas in large numbers, with 11.6 million outbound trips recorded in 2024 and further growth recorded through 2025.

That momentum is expected to gradually stabilise over the remainder of the decade as demand normalises after the post-pandemic surge.

By 2030, outbound travel is forecast to reach 14.9 million trips, with strong ongoing demand for short-haul leisure destinations such as Japan, China, Vietnam and Thailand shaping travel patterns.

Airports are also reporting strong momentum, with Sydney Airport recording its strongest first quarter for international travel on record in 2026.