As the European summer holiday season begins, Australians are making ambitious travel plans despite the economic challenges posed by the cost-of-living crisis. Recent data from PassportCard, a leading travel insurer, reveals that many Australians are set to journey to Europe in the coming year, albeit with a more cost-conscious approach. This trend underscores the enduring allure of European destinations and the lengths Australians will go to experience them.

A Commitment to European Travel

According to a comprehensive survey conducted by PassportCard, over a quarter (28%) of the 1,800 Australians surveyed plan a trip to Europe within the next 12 months. This is despite an overwhelming majority (87%) acknowledging that the current economic climate has influenced their travel decisions. These findings highlight a resilient travel spirit among Australians, undeterred by financial pressures.

Adapting to Economic Realities

Australians are adopting various strategies to manage their European aspirations amidst economic constraints. Nearly two in five (39%) seek travel deals, while a third (37%) opt for more affordable accommodations. Many are also modifying their travel styles to fit their budgets (35%), cutting back on non-essential expenses like dining out (32%), and choosing to travel during off-peak periods (31%).

Younger travellers, particularly those aged 18-34, are leading the charge in these adjustments. Almost half (46%) of those aged 25-34 are hunting for flight and accommodation bargains. Similarly, 40% of millennials (aged 25-44) are tailoring their travel experiences to be more budget-friendly, with the same proportion booking cheaper hotels. This generation is also twice as likely to forgo non-essential purchases, such as new clothes and dining out, compared to those over 54.

Economic Divide in Travel Adjustments

Interestingly, the data reveals that higher-income earners are more likely to alter their travel plans due to economic pressures. Households with incomes exceeding $200,000 are significantly more proactive in seeking cost-saving measures. These include searching for deals (52%), booking cheaper accommodation (37%), planning shorter trips (40%), and travelling during off-peak times (40%). In contrast, these strategies are less prevalent among lower-income households.

Emphasis on Travel Insurance

Despite the financial challenges, one aspect of travel Australians do not compromise on is insurance. An overwhelming 92% of respondents confirmed they take out travel insurance for their European trips. This caution is justified, given the potential for unforeseen issues such as flight cancellations, lost luggage, medical emergencies, or theft. Notably, younger travellers (18-24 years old) are twice as likely to travel without insurance (14%) compared to other age groups (7%).

Peter Klemt, CEO of PassportCard, emphasized the importance of travel insurance, stating, “European holidays are often a once-in-a-lifetime experience for many Australians and represent a significant financial investment. Our data shows that the average cost of a trip to Europe has risen by 8% in 2024 to $10,861. With the average trip lasting 35 days, travelers have ample time to immerse themselves in the culture, but also face greater risk of mishaps.”

Klemt continued, “Common issues such as flight cancellations, lost luggage, and theft can severely disrupt a holiday and incur unexpected expenses. Ensuring adequate travel insurance coverage is essential for a stress-free vacation.”

Popular European Destinations

The PassportCard survey also identified the most sought-after European cities among Australian travellers. Paris, Rome, London, and Barcelona topped the list, each known for their cultural richness and historical significance. However, these destinations also pose challenges, including high costs for medical services, luggage replacement, and alternative travel arrangements.

Streamlining Travel Challenges

For travellers facing setbacks, timely resolution of insurance claims is crucial. PassportCard offers instant payouts for common claims like medical emergencies, delayed luggage, and stolen cash, ensuring travellers can swiftly resume their vacations. With a two million global customer base and a dedicated 24/7 support team in Sydney, PassportCard is well-equipped to assist Australians in navigating travel disruptions and minimizing out-of-pocket expenses.

In conclusion, despite the current cost-of-living pressures, Australians remain undeterred in their quest for European summer adventures. By adopting savvy travel strategies and prioritizing travel insurance, they are poised to enjoy memorable and financially manageable holidays. This determination reflects the enduring appeal of Europe and the resourcefulness of Australian travellers in making their travel dreams a reality.

For more information on travel insurance options and planning tips, visit PassportCard.

Written by: Soo James

=====================================