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Southern Cross Travel InsuranceAccording to new research by Southern Cross Travel Insurance, 83% of Australians who plan to travel this year will need to reduce travel costs as a result of the rising cost of living. The research, called “The Future of Travel 2023”, was commissioned by Southern Cross Travel Insurance to examine if travel behaviour in Australia has changed since emerging from the pandemic last year. Although the appetite for travel remains high, with 87% of Australians planning to travel domestically or internationally in the next 12 months, nearly two in five (37%) say they are less likely to travel interstate over the next 12 months due to the rising cost of living, and nearly half (48%) say they are less likely to travel overseas this year for the same reason.

For those who still plan to travel but need to reduce the cost of travel due to the rising cost of living, trade-offs will include booking cheaper or budget accommodation (39%), taking fewer trips overall (37%), taking a shorter trip (36%), and not taking out travel insurance (10%). The research shows that one in ten Australians claim they won’t purchase travel insurance as a way to save costs due to financial pressures brought about by the rising cost of living, and millennials are twice as likely as baby boomers to say they would reduce their travel costs by not buying travel insurance.

Jo McCauley, CEO at Southern Cross Travel Insurance, said: “It’s unsurprising, following the lockdowns, that Australians still have a huge appetite to get out there and see the world. But the rising cost of living is impacting Australians across all areas and travel is no exception, so it’s understandable Australians will be looking for ways to cut costs while still trying to make those trips happen”. McCauley stressed that Australians need to ensure travel insurance doesn’t get cut as part of that process. “We’d encourage everyone to ensure they take out travel insurance regardless of where they’re travelling, as it could end up saving you significantly in the case of the unexpected,” she said.

The research shows that there is a significant increase (22%) in the proportion of Australians planning to travel overseas this year, compared to the previous 12 months, with half (50%) of Australians planning to travel overseas over the next 12 months. More than three-quarters (77%) of Australians plan to travel within the state they live in over the next 12 months, with an average of 2.4 trips planned for an average length of 5 days. Similarly, two in three (67%) Australians plan to travel interstate over the next 12 months, with an average of 1.8 interstate trips planned for an average of 8 days.

When considering the holiday experiences they would like to enjoy while travelling, the top three cited by Australians who plan to travel over the next 12 months are a family holiday with immediate family (35%), a romantic getaway with their partner (29%), and a cultural immersion (24%). There has been a significant decline in the appeal of holidays with immediate family (35% down from 46%), cultural immersions (24% down from 31%), and nature and adventure travel (20% down from 24%).

The Future of Travel 2023 research shows that Australians’ reasons for travel have changed considerably since the pandemic emerged. Although COVID-19 remains a concern, with 36% of respondents saying it will affect their travel plans, the research shows that people are adjusting to life post-pandemic. “This increase in travel demand could be due to there being less anxiety now among travellers about COVID-19. We’re definitely observing a drop in traveller apprehension in our conversations with customers compared to last year. People seem to be adjusting to life post-pandemic.

 

 

 

Written by: Anne Keam

 

 

 

 

 

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