Spending on holidays and travel insurance highest since pandemic
News of the new, highly transmissible Omicron variant couldn't come at a worse time, as the travel industry prepares for the busiest season since the onset of the Covid-19 pandemic
Travel insurance comparison site, Squaremouth.com, analysed data from thousands of policies purchased for travel this holiday season to identify trends that show the state of travel going into Christmas week.
Coverage for Covid-19 related concerns has dominated travel insurance sales since the onset of the pandemic and remains the top concern for many travellers. This holiday travel season, 33 per cent of travellers on Squaremouth.com specifically sought out Covid coverage for trips this holiday season.
With travellers regaining confidence, spending on holiday trips has increased this year, especially for travellers taking within the United States. Travelers taking domestic trips around Christmas and New Years are spending nearly 20 per cent more this year compared to 2020, with the average domestic trip costing about US$5,579. Spending for international trips has also increased over 2020, rising by five per cent to $5,818.
Earlier this year, Squaremouth reported insuring more travellers than prior to the pandemic. This holiday season, the comparison engine has insured 300 per cent more travellers than last year, and 70 per cent more than 2019.
Awareness of travel insurance at an all-time high
“Interest and awareness surrounding travel insurance is at an all-time high as we approach the busy holiday travel season,” said Megan Moncrief, Chief Marketing Officer for Squaremouth. “Travellers are preparing differently this year by opting for travel insurance, to protect themselves in case travel plans are affected by unpredictable events from cancellations to illnesses.”
Despite additional borders opening to US tourists, Caribbean destinations that have largely remained open throughout the pandemic continue to attract the most travellers.
This holiday season, 6 out of Squaremouth’s top 10 international destinations are Caribbean countries, with the Dominican Republic, Turks and Caicos, and the British Virgin Islands joining the list for the first time.
This shows that travellers are cautiously confident traveling internationally this holiday season. Prior to the pandemic, close to 90 per cent of trips booked for holiday travel were to international destinations. While border closures forced many travellers to stay stateside last year, Squaremouth reports a 326 per cent increase in the number of US tourists traveling internationally this holiday season.
Travellers can quote, compare, and buy travel insurance for their holiday travel on Squaremouth.com. Squaremouth sells over 90 plans from 20+ providers and offers the largest portfolio of products offering coverage related to the Covid-19 pandemic.