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Knowledge Reveals High Journey Locations and People Spending Extra Than Pre-COVID

Forbes Advisor not too long ago analyzed journey insurance coverage knowledge from Squaremouth to uncover client buying traits and different…

By Staff , in Travel Insurance , at August 13, 2021

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Forbes Advisor not too long ago analyzed journey insurance coverage knowledge from Squaremouth to uncover client buying traits and different findings in regards to the present state of the journey market.

The report’s major takeaway is that People are nonetheless planning abroad journeys for 2022 and past, and are shelling out much more for these getaways than they’d have previous to the pandemic.


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Journey insurance coverage gross sales knowledge means that solar, sand and surf are nonetheless in excessive demand amongst vacationers reserving worldwide journeys, with Mexico rising because the main vacation spot amongst People who’re going overseas, adopted by Turks and Caicos, and Costa Rica.

COVID Considerations

Amongst journey insurance coverage purchasers, COVID-19 issues have continued to be top-of-mind. “People are reserving holidays however are taking a extra cautious method, as seen in how they’re utilizing journey insurance coverage as a device to protect in opposition to hassle,” stated Amy Danise, Chief Insurance coverage Analyst of Forbes Advisor.

Since not all insurance policies cowl COVID-related points, patrons must be choosey. Insurance policies that do embody pandemic safety sometimes cowl COVID-related journey cancellations if, for instance, you come down with COVID-19 simply earlier than your journey; and COVID-linked medical bills, do you have to contract the virus throughout your journey.

American travelers' top destinations
American vacationers’ high locations, based mostly on insurance coverage purchases made between March 2020 and July 2021. (graphic courtesy of Forbes Advisor)

The report additionally reveals that curiosity in “cancel for any motive” (CFAR) protection has doubled since pre-pandemic instances. These touring to the U.S. Virgin Islands, domestically throughout the U.S. and to Italy have demonstrated the strongest demand for including a CFAR clause onto their coverage.

CFAR protection is particularly fascinating amid the continued pandemic as a result of commonplace journey cancellation doesn’t cowl cancellations made on account of journey advisories, although not all journey insurers even provide this coverage improve. At present, about 11 p.c of journey insurance coverage purchasers are particularly looking for insurance policies with CFAR protection, in comparison with simply 5 p.c previous to the pandemic.

Additionally indicative of a cautious method, many purchasers are buying journey insurance coverage insurance policies effectively forward of time—5 months on common amongst these headed to The Bahamas, for instance. More and more, advance planning can also be evident amongst People sure for locations like South Africa, Italy, Germany, France and Canada.

Increase in interest in
Improve in curiosity in “cancel for any motive” journey insurance coverage protection because the onset of COVID-19. (graphic courtesy of Forbes Advisor)

Pandemic Pricing

Squaremouth’s gross sales knowledge additionally reveals that the costliest getaways being booked by People are to South Africa, adopted by Greece and Italy. Maybe as a result of they’ve felt pent-up at dwelling for the previous 18 months, U.S. vacationers additionally look like paying extra for his or her journeys than they did previous to the pandemic.

Prices in lots of locations have gone up and common traveler spending has additionally markedly elevated as compared with the pre-pandemic period.

“With holidays delayed from 2020 and folks desperate to cease trying on the identical 4 partitions, People are actually spending extra on journeys for a lot of locations,” Danise stated. “For instance, the common journey value to South Africa pre-pandemic was already excessive at nearly $10,000. Now, South Africa journeys are averaging near $12,000.”

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