New research reveals travel insurance as the ‘big loser’ in latest trends – Travel Weekly

Southern Cross Travel Insurance has released new data showing that the ever-rising cost of living is having a significant impact on Australians’ travel plans in 2023.

New research shows that more than eight in ten Australians planning to travel in the next 12 months admit rising costs of living will require them to cut their travel expenses.

The Future of Travel 2023 study was commissioned by Southern Cross Travel Insurance to better understand whether travel behavior in Australia has changed since the pandemic broke out last year.

Australians’ desire to travel remains high, with nearly 87 per cent planning to travel either domestically or internationally in the next 12 months, but nearly 37 per cent of Australians say they are less likely to travel interstate in the next 12 months rising cost of living, while half believe they will be less likely to travel abroad this year for the same reason.

For those planning to travel in the next 12 months but needing to cut travel expenses due to the rising cost of living, the trade-offs include booking cheaper or cheaper accommodation, fewer trips overall, and a shorter trip.

Research conducted by Southern Cross Travel Insurance last year showed a sharp decline in the appeal of budget and hostel accommodation as people became more wary of COVID-19. In 2023, however, consideration for budget accommodation has increased as COVID-19 is less of a concern for travelers and the cost of living outweighs any health concerns travelers may have previously had.

The most worrying finding from the study is that 1 in 10 Australians say they don’t buy travel insurance to save on expenses due to the financial pressures of rising living costs, and Millennials are twice as likely as Baby Boomers to say they cover their travel expenses reduce by not purchasing travel insurance.

“It’s not surprising that after lockdowns, Australians still have a huge appetite to get out and see the world,” said Jo McCauley, CEO of Southern Cross Travel.

“But the rising cost of living is affecting Australians in all walks of life and travel is no exception. So it’s understandable that Australians are looking for ways to cut costs while continuing to try to make these trips possible.

“We know that most Australians give travel insurance a high priority when traveling abroad, with 76 per cent making it a high priority when traveling abroad, but only 49 per cent feel the same way when traveling domestically.

“We encourage everyone to take out travel insurance, regardless of where they are traveling to, as it can result in significant savings in the event of the unexpected.

“An ambulance from Bali to Sydney can cost anywhere from $80,000 to $110,000 and not many people can afford a medical bill that high.

“It’s just not worth taking the risk!”

Key findings from the research include:

• 87 percent of Australians plan to travel in 2023
• 83 percent of Australians have to reduce their travel expenses due to the rising cost of living
• 37 percent will be less likely to travel interstate in the next 12 months due to the rising cost of living
• 48 percent are less likely to travel abroad in the next 12 months due to the rising cost of living
• Trade-offs include booking cheaper or less expensive accommodation (39 percent) and traveling less
  overall (37 percent), shorter trips (36 percent) and no travel insurance (10 percent)