US travellers rethink plans as Europe demand dips and insurance interest rises

Americans are rethinking their European travel plans this spring, according to new data from Squaremouth, a US travel insurance marketplace. Traditionally marking the start of peak European travel, April is instead seeing a shift toward domestic trips and alternative international destinations.

Squaremouth reports that travellers are increasingly favouring countries perceived as politically neutral, including the Netherlands, Ireland, and Norway. Meanwhile, destinations such as the UK and Iceland are experiencing a decline in demand, reflecting changing perceptions around safety and geopolitical focus.

At the same time, domestic travel costs are rising sharply. Average trip spend for April and May has increased 20% year on year, from US$4,290 in 2025 to $5,124 in 2026. This suggests travellers are reinvesting savings from avoiding long-haul trips into higher-end experiences within the US.

For those still travelling to Europe, demand for flexible insurance is growing. Nearly 20% more travellers searched for cancel for any reason (CFAR) coverage compared with last year, although 26% missed the eligibility window to purchase it.

“The variety of global risks we’re seeing right now is driving a lot of the interest in CFAR,” said Chrissy Valdez, Senior Director of Operations at Squaremouth. “It gives travellers a level of flexibility that standard policies simply won’t offer.”

According to the latest IATA predictions, air travel is set to double by 2050.