New data reveals 68% of Aussies will still travel despite a recession

Although Scott Morrison’s re-election has put a renewed focus on economic growth – and that means doing whatever is needed to avoid a recession – new data reveals that most Aussies believe an economic downturn is on its way. Even so, two-thirds of Aussies would not cancel any holidays they had planned.

The findings come from a survey of an independent, nationally representative panel of 1000 Australian adults who travel[1], commissioned by multi award-winning travel insurance specialist InsureandGo (insureandgo.com.au).[2] The purpose of the research was to uncover whether Aussies would still travel during a recession.

The results reveal that almost two in three (63 per cent) survey respondents think a recession will hit Australia before 2023, while 16 per cent believe it will happen even sooner – before 2020.

Despite this, 68 per cent of respondents would still travel during a recession, although responses varied depending on age. Of those who would continue travelling, 42 per cent of over-60s would travel as usual, despite poorer economic conditions. This compares to just 26 per cent of those in their 30s, who would travel as they usually would – even in a recession.

In a recession, nearly 1 in 3 Aussies (32 per cent) would still travel but would downgrade their holiday. Among this group, more than half (53 per cent) would reduce their travel spending money, 38 per cent would downgrade to a holiday within their own state, and 31 per cent would downgrade to an inter-State holiday.

Downgrading accommodation was the least popular option, with only a quarter (25 per cent) saying they would do this. Surprisingly, this choice was highest among those in their 40s (35 per cent), and lowest among under-30s (13 per cent). Meanwhile, 66 per cent of over 60s would prefer to cut back on their travel spending money, rather than downgrade their accommodation (26 per cent chose this).

Jonathan Etkind, spokesperson at InsureandGo, says: “Our research reveals that, while a recession would have some impact on travel spend, we are increasingly finding that travel is an expenditure that most households regard as an important necessity and would not compromise on.

“Most travellers believe that they won’t have to claim on their travel insurance, and some may even try to cut the cost of their trip by not purchasing a travel insurance policy. However, in reality, if something goes wrong, be it a medical emergency, or lost luggage, the risk of not being covered can leave you out of pocket, and without support or assistance in a foreign country when you need it most. That’s why we strongly recommend that travellers don’t compromise on getting the appropriate travel insurance to suit their trip.”

InsureandGo reveals its top 5 tips to save on travel insurance during a recession to help keep travel costs low.

1. Tailor your excess. Increasing your excess (the amount you pay when making a claim) can save you money on your travel insurance now. However, it is important to bear in mind that should you need to claim, a higher excess will be payable. If you are undertaking a high-risk activity on a holiday, such as skiing, this is something worth considering. In these cases, lowering your excess – and even reducing it to nil – will save you money if an accident occurs.
2. Opt for multi-trip packages. Are you a globetrotter or frequent business traveller? Consider getting an annual multi-trip travel policy where you will receive continual cover for a year, saving you the hassle of taking out multiple policies for separate trips.

3. Look for discounts. Keep an eye out for coupons or codes for your chosen travel insurance providers by signing up to their newsletters and following their social pages. InsureandGo, for example, often share exclusive promo codes with email subscribers.

4. Be honest. It is important to tell the truth, as being dishonest about your insurance application may cost you when making a claim. Worse still, they can result in your claim being rejected altogether. For instance, in order to get medical cover for pre-existing conditions, you must disclose to your insurer any medical condition that you have been diagnosed with in the last five years, when travelling on an international policy. If this condition causes you to cancel or cut short your trip, you will be covered only if you have declared that condition to your insurer.
5. Don’t under-insure. Some insurance policies might not cover cruise travel, winter sports, or any holidays ‘above the snow line’. Before choosing your insurance, check that it covers all the destinations you visit. Additionally, ensure that risky activities, such as bungee jumping or abseiling, will be covered by your travel policy. Making claims that you are not covered for will result in having to pay the costs out of your own pocket.