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Domestic tourism in Australia generates about 74% of total tourism revenue. Given that, this<br />paper examines whether changes in Australian households’ income and the prices of domestic<br />travel can influence the demand for domestic travel. It reveals some notable results. First,<br />Australian households will not choose to travel domestically when there is an increase in<br />household income. Second, an increase in the current prices of domestic travel can cause the<br />demand for domestic trips to fall in the next one or two quarters ahead. Finally, the coefficients<br />for lagged dependent variables are negative, indicating perhaps, that trips are made<br />on a periodic basis.<br />Keywords: domestic tourism, Australia, households’ income, domestic travel