As Euro summer begins, a new report from PassportCard Australia reveals younger travellers are embracing ‘looksmaxxing’ culture and a “life’s too short” approach to travel this year yet are falling short when it comes to travel insurance literacy despite growing global instability.
The new report comes as PassportCard-owned data reveals just 1.5% of under-30 Australians have cancelled trips to Europe this year, with the data suggesting younger Australians are adapting to ongoing global uncertainty rather than putting travel plans on hold.
A combined 1 in 4 Gen Z and Millennial travellers say they are heading to Europe this year “no matter what”, while Gen Z travellers were nearly twice as likely as Boomers to say they feel they need to “travel now before Europe becomes more expensive or difficult” (24% vs 13%).
Rather than cancelling travel altogether, younger Australians are increasingly adjusting their plans to make Europe happen, with Gen Z travellers more than four times as likely as Boomers to say they are actively looking for alternative routes to Europe to avoid conflict zones (21% vs 5%).
The strongest driver behind Europe travel right now is long-awaited bucket-list planning, with 41% of Millennials and 33% of Gen Z saying they have been saving and planning for their trip for too long to put it off any longer.
“Younger travellers have spent years saving for these trips and they’re determined to make them happen. What we’re seeing is a generation adapting to uncertainty rather than cancelling travel altogether. They’re changing routes, adjusting plans and prioritising experiences, but they’re still getting on the plane,” said Peter Klemt, CEO of PassportCard Australia.
Euro Summer ‘looksmaxxing’ culture is leading young Aussies travel preparation
The report found younger Australians are spending thousands of dollars on appearance-focused travel preparation before overseas holidays, from new wardrobes and beauty treatments to fitness regimes and cosmetic injectables, as ‘looksmaxxing’ and pre-travel glow-up culture continue to gain momentum.
More than 7 in 10 Gen Z travellers (72%) and 6 in 10 Millennials (61%) spend money on beauty or aesthetic treatments before overseas trips, compared to just 23% of Boomers.
Almost half of Gen Z (49%) and Millennial travellers (48%) spend money on new clothing before travelling overseas, while 34% of Gen Z and 31% of Millennials spend more on skincare, hair or beauty products.
A further 32% of Gen Z and 28% of Millennials start a fitness or weight-loss routine before travelling, while 30% of Gen Z and 23% of Millennials spend time planning social media content ahead of departure.
Nearly 1 in 5 younger Aussies would consider cosmetic injectables or fillers before or during an overseas trip, including 10% of Gen Z and 8% of Millennials.
“No longer are overseas holidays just about booking flights, planning itineraries, researching restaurants and securing accommodation. Appearance-focused travel preparation is increasingly becoming part of the broader Euro summer experience, with many younger travellers investing in everything from new wardrobes and beauty treatments to fitness goals and aesthetics before departure, reflecting the rapid rise of looksmaxxing culture across social media”, said Klemt.
The travel insurance knowledge gap
Despite concerns around global instability, travel disruption and rising costs, the report found significant gaps remain in Australians’ understanding of travel insurance.
The findings reveal younger travellers are often dedicating more time to appearance-focused travel preparation than practical travel planning, with Gen Z more likely to plan social media content for a trip (30%) than research travel insurance policy exclusions before departure (24%).
Overall, 16% of Australians admit they would not fully understand what situations could void their travel insurance cover overseas, with this sharply rising to 26% among Gen Z travellers and 22% among Millennials.
Nearly 1 in 5 Gen Z travellers (19%) admit they have never properly read the exclusions section of their travel insurance policy, while Gen Z travellers are nearly three times more likely than Boomers to admit they don’t understand what could void their cover overseas (26% vs 9%).
The report also found younger Australians are increasingly turning to AI tools to navigate policy wording, with 9% of Gen Z and 10% of Millennials using platforms such as ChatGPT and Gemini to explain travel insurance exclusions and fine print.
Perhaps most concerning, more than half of younger travellers admit they would only properly look into what their travel insurance covers after experiencing a problem overseas, including 53% of Gen Z and 52% of Millennials.
“What’s interesting is that we’re seeing younger travellers invest significant time researching destinations, planning itineraries and even preparing how they’ll look for a trip, yet many still aren’t giving the same attention to understanding their travel insurance. The reality is that a travel insurance policy is often one of the most important purchases you make before heading overseas”.
“Travel insurance isn’t something you want to start researching from a hospital bed, an airport terminal or after your luggage has gone missing. Understanding what’s covered, and just as importantly what isn’t, before you leave Australia can save travellers significant stress, time and money if something goes wrong”, Klemt continued.
What’s actually catching Aussies out in Europe right now
Alongside the consumer research, PassportCard claims data has revealed the biggest reasons Australians have claimed travel insurance while travelling through Europe this year.
Medical claims accounted for 31% of Europe claims, making them the most common type of claim lodged by Australian travellers.
The leading medical issues included flu, influenza and cold symptoms (17%), knee injuries and sprains (10%), fractures and injuries (10%), nausea and gastro-related illness (10%), respiratory issues (7%), sinus or ear infections (7%) and head injuries (7%).
Luggage-related incidents accounted for a further 26% of Europe claims, with the most common items involving essential item reimbursements (30%), phones (19%), glasses and sunglasses (15%), cash (11%), electronics (7%) and entire luggage bags (7%).
Cancellations accounted for 15% of Europe claims.
“Travellers often focus on major world events, but the reality is that everyday travel mishaps such as illness, injury, lost phones, delayed luggage and stolen belongings remain some of the biggest reasons Australians need travel insurance,” Klemt said.
The assumptions leaving Aussie travellers out of pocket
The report also highlights a growing disconnect between what travellers think is covered by travel insurance and the situations where claims may not be paid.
Many Australians appear confused about what travel insurance automatically covers. While 36% of Australians say being impacted by war, terrorism or civil unrest is one of their biggest travel concerns right now, 13% believe these situations are automatically covered by travel insurance.
Similarly, 28% believe natural disasters are automatically covered, 19% believe airline insolvency is automatically covered and 5% believe travel booked against government warnings would automatically be covered under a travel insurance policy.
This confusion is also reflected in PassportCard Australia’s declined claims data which reveals common situations where travellers are not being paid out due to misunderstood exclusions, policy assumptions and the claim amount being below the excess.
While over 90% of claims received by PassportCard are paid, some common examples where, unfortunately PassportCard’s policy does not respond, like most other travel insurers, include travellers missing flights due to personal circumstances such as oversleeping, travelling to the wrong airport or waiting at the wrong departure gate. Accommodation-related complaints accounted for a large amount too, typically involving hotel quality concerns, booking disputes, cancellations and cleanliness complaints.
Outside of claims that were not covered under the policy, just over 20% of declined claims involved claim amounts that fell below the policy excess chosen by the customer, while nuclear and war-related exclusions accounted for 9% of declined claims (a recent spike due to the Middle East conflict) and booking errors represented just under 5%.
“One of the biggest mistakes travellers make is assuming every disruption is automatically covered by travel insurance. As travel becomes more unpredictable, understanding exactly what your policy covers before you leave has never been more important. Taking a few minutes to understand what is and isn’t covered could save travellers significant stress and expense if something goes wrong overseas”, Klemt said.
As Australians prepare for their European summer, PassportCard Australia is reminding Australians travelling to Europe this summer to get protected with travel insurance and make sure they understand what their travel insurance policy covers before departure, particularly during a period of global instability, travel disruption and uncertainty.
