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.”