Australians won’t give up travelling despite the rising cost-of-living pressures in the country, according to 1Cover Travel Insurance’s (1Cover) latest study.
The report revealed that Australians are 1.6 times more inclined to travel in 2023 than in 2019 despite the cost-of-living crisis. Demand for travel insurance also jumped by 55%.
1Cover spokesperson Natalie Smith said travel is on the rise due to pent up demand and the lingering effects of COVID-19 lockdowns.
“While Aussies are grappling with the increased cost-of-living, they are clearly willing to spend their hard-earned cash on travel and meaningful experiences with loved ones,” Smith said. “Aussies are being more pragmatic about their spending, even if it means adapting their planning to the current economic outlook.
“We’ve seen an increase in weekend getaways and shorter trips along with a shift towards domestic holidays and destinations such as Bali and New Zealand. We’ve also seen growth in off-peak season travel as a means of cutting costs.”
As demand for travel continues to rise, 1Cover advised Australians to evaluate which costs are essential and not.
“As Aussies become more considered in their travel choices, it’s important not to disregard travel insurance. In the event of an emergency, medical treatments abroad can cost upwards of $100,000. In the worst-case scenario, not having travel insurance could send you into debt, or worse,” Smith said. “Travel insurance is the single biggest decider as to whether you can afford a holiday or not. Put simply, if you can’t afford travel insurance, you certainly can’t afford to travel.”
A recent study revealed that one in 10 Australians could ditch travel insurance due to the cost-of-living crisis.