Squaremouth breaks down how summer travel trends are shaping up in 2021. More than one year into the Covid-19 pandemic, travelers are slowly regaining their willingness to take trips ahead of the summer travel season.

Squaremouth Analytics has compared thousands of travel insurance policies purchased pre-and-post-pandemic to identify changes and trends in travel insurance to unveil how both consumers and travel insurance providers are responding to the impact of Covid-19 this season. The key trends are outlined below.

Travelers Prefer to Stay Close to Home

  • Domestic trips are estimated to make up 48% of travel for U.S. residents in Summer 2021
  • This is a significant spike from 2020, when just 19% of travelers were staying in the U.S.

Increased Purchases of Travel Insurance for Covid-19

  • Nearly 35% of all purchases for summer trips include the Covid-19 filter, which only shows policies offering Coronavirus Cancellation or Coronavirus Medical benefits
  • Nearly 27% of purchases include the Cancel For Any Reason upgrade, compared to 19% in 2020
    • Prior to the pandemic, this figure was historically around 8%

Cancel For Any Reason is an optional upgrade that partially reimburses travelers to cancel for a reason that is not otherwise covered by their policy, such as fear of traveling due to Covid-19.  This benefit is only available for 10-21 days after the traveler’s initial trip payment, and can reimburse up to 75% of their prepaid and non-refundable trip expenses.

Baby Boomers are Willing to Travel

  • The Baby Boomer generation accounts for 30% of travelers this summer, the most of any generation
    • This is followed by Gen X at 24% and Gen Z at 18%
  • The average age of travelers buying travel insurance in March was 41, marking an increase from the onset of the pandemic when the average age dropped as low as 38
    • Before the pandemic, the average traveler buying through Squaremouth was 50+

“The rise in travel among Baby Boomers is part of a trend we’ve seen since the vaccine rollout,” says Squaremouth Lead Data Analyst, Steven Benna. “This trend is continuing as travelers begin to book their summer vacations.”

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