New research reveals travel insurance as the ‘big loser’ in latest trends
Southern Cross Travel Insurance has released new data that highlights the ever rising cost of living as having a significant impact on Australians travel plans in 2023.
New studies reveal more than eight in ten Australians who plan to travel over the next 12 months admit they will need to reduce travel costs as a result of the rising cost of living.
The Future of Travel 2023 research was commissioned by Southern Cross Travel Insurance to better understand if travel behaviours in Australia have changed since emerging from the pandemic last year.
Australians’ appetite for travel remains high, with nearly 87 per cent planning to travel either domestically or overseas in the next 12 months, however, nearly 37 per cent of Australians say they are less likely to travel interstate over the next 12 months due to the rising cost of living while half say they are less likely to travel overseas this year for the same reason.
For those who plan to travel over the next 12 months but need to reduce the cost of travel due to the rising cost of living, trade-offs will include booking cheaper or budget accommodation, taking fewer trips overall and taking a shorter trip.
Research conducted last year by Southern Cross Travel Insurance showed a sharp drop in the appeal of budget and hostel type accommodation as people were wary of COVID-19. However, in 2023, consideration for budget accommodation has increased as COVID-19 becomes less of a concern for travellers, with cost of living outweighing any health concerns travellers may previously have had.
The most concerning finding from the research is that 1 in 10 Aussies claim they won’t purchase travel insurance as a way to save costs due to financial pressures brought about by the rising cost of living, and millennials are twice as likely as baby boomers to say they would reduce their travel costs by not buying travel insurance.
“It’s unsurprising, following the lockdowns, that Australians still have a huge appetite to get out there and see the world,” CEO, Southern Cross Travel, Jo McCauley, said.
“But the rising cost of living is impacting Australians across all areas and travel is no exception, so it’s understandable Australians will be looking for ways to cut costs while still trying to make those trips happen.
“We know that most Australians consider travel insurance as a high priority for overseas trips with 76 per cent rating it a high priority for international travel but only 49 per cent feel the same way for domestic travel.
“We’d encourage everyone to ensure they take out travel insurance regardless of where they’re travelling as it could end up saving you significantly in the case of the unexpected.
“An air ambulance from Bali to Sydney can cost anywhere between $80,000 and $110,000 and not many people can afford a medical bill that size.
“It’s just not worth taking the risk!”
Key findings from the research include:
- 87 per cent of Australians plan to travel in 2023
- 83 per cent of Australians need to reduce the cost of travel due to the rising cost of living
- 37 per cent are less likely to travel interstate over the next 12 months due to the rising cost of living
- 48 per cent are less likely to travel overseas over the next 12 months due to the rising cost of living
- Trade-offs will include booking cheaper or budget accommodation (39 per cent), taking fewer trips
overall (37 per cent), taking a shorter trip (36 per cent) and not taking out travel insurance (10 per cent)
Email the Travel Weekly team at traveldesk@travelweekly.com.au
Jo McCauley Southern Cross Travel Insurance travel trendsLatest News
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