Weather and natural disasters are top concerns for travellers: study
Major storms, natural disasters and an uncertain economy impacted traveler behavior in 2018, but didn’t stop Americans from travelling or insuring their trips, Squaremouth reveals the top traveler trends of 2018 based on customer data.
Travellers spent less on trips
The recent sluggish economy led to an overall decrease in how much travellers spent on trips in 2018. For the first time in 6 years, travellers spent less on their trips than the previous year, with the average trip cost declining by 3 per cent. Despite decreased spending, more travellers chose to protect their trip costs with travel insurance in 2018. Squaremouth reported a 28 per cent increase in cancellation-style policy sales over last year.
US travellers stayed close to home
US residents preferred travel within North America in 2018, which may have been a result of the uncertain economy or safety threats abroad. After the United States, the next 3 most popular 2018 destinations were Mexico, Italy and Canada. The cost to travel to these destinations has decreased by an average 5 per cent over last year.
Weather and natural disasters were a top concern
Major natural disasters in 2018, such as hurricanes Florence and Michael, and the California wildfires, had more travellers worried about having to cancel their trips unexpectedly. The number of travellers who bought travel insurance in 2018 specifically for weather or a natural disaster increased by 13 per cent over last year. Traveller concern over weather surpassed terrorism as the top cancellation concern.
New Destinations gain ground
More travellers, particularly Millennials, are opting for destinations that offer cultural and historical experiences over traditional locations. In 2018, tourism to Egypt, Morocco and Japan increased 144 per cent, 73 per cent and 47 per cent, respectively, compared to last year. Younger generations are leading the charge to these locations, which show a 65 per cent increase in Millennial travellers over last year.
Cruises continued to gain popularity
More travellers of all ages are choosing to spend their vacations aboard cruises in 2018. The number of travellers buying cruise insurance in 2018 increased by 22 per cent over last year. Travellers purchasing travel insurance specifically for cruises has increased every year since 2012. The number of travellers over 70 years old taking cruises has doubled since last year, followed closely by Baby Boomers, Gen X and Millennials.