The Allianz Partners Travel Index, which surveyed 1,000 Australian adults regarding travel plans and holiday aspirations for the year ahead, reveals that seven in 10 (71%) of Aussies plan to travel in the year ahead.
Cost-of-living is having an impact on travel plans, with 80% of those who will stay at home citing cost as their main barrier.
And for those who are travelling, rest, relaxation and peace of mind are the priority – 71% are planning holidays focused on resorts and wellness, and for these travellers, the number one reason to purchase travel insurance is for peace of mind..
What Australians will spend on travel
The average Aussie traveller is planning to spend $5-10k per trip in the coming year.
Almost twice as many travellers in the 18-34 age group than in the 55+ group will spend more than $10k on their holidays indicating this generation are prioritising their discretionary spend towards travel
Peace-of-mind top-of-mind
Alongside rest and relaxation, Australians are also prioritising peace of mind.
Eight in 10 (82%) travellers say they will purchase travel insurance, citing top concerns as illness (49%), insufficient cash (45%) and flight cancellations and delays (43%) – a greater proportion of women than men worrying about these issues.
Aussie travellers will purchase insurance directly (40%) or through a travel website (16%), or will use the insurance included on their credit cards (14%).
There are direct correlations between travel budgets, and likelihood of purchasing insurance, with those spending more than $10k on their travel almost 20% more likely to purchase travel insurance than those budgeting less than $5,000.
“It’s fantastic to see so many Australians rightly prioritising travel insurance when planning their travel,” said Chris McHugh, CEO, Allianz Partners Australia.
“We would like to see all travellers regardless of their travel budget make travel insurance an essential purchase because we know that when the unexpected happens overseas it can be costly. The industry as a whole has work to do to continue to educate travellers about the importance of protecting themselves while travelling.”
“Although younger Australians are planning to spend the most on their travels, they also note as a key worry having insufficient cash while away. This highlights the importance of Travel Insurance for this cohort if something unexpected happens overseas,” McHugh said.
