2023 will see international travel recover at a faster pace despite increasing prices, as travelers shake concerns from the pandemic and plan bigger trips.
Travel insurance marketplace Squaremouth.com analyzed booking trends to identify five key 2023 travel predictions.
2023 Will Mark the Full Recovery of International Travel
- Nearly 90% of insured travel was for international destinations, marking the first time international travel matched pre-pandemic levels.
- Squaremouth anticipates a high demand for international trips to continue in 2023.
Antarctica Will Be a Top Destination for the First Time in 2023
With international travel back, bigger trips to more adventurous destinations will trend in 2023.
- Preliminary 2023 trip data shows Antarctica is a top destination for the first time ever.
- Other top destinations early in 2023 include Israel, Costa Rica, France, Spain, and Japan.
- Travel is getting more expensive, and will continue to increase in 2023. Travelers spent an average of 25.53% more on trips in 2022 compared to pre-pandemic figures.
- Millennials are feeling the most price pressure, spending an average of 40% more on trips compared to 2019.
Older Travelers Return
Older travelers have returned to pre-pandemic numbers going into 2023. Squaremouth expects Millennials and Gen Z will continue to purchase travel insurance at a higher rate than 2019.
- Over 60% of travel insurance buyers are born before 1980, which includes Generation X and the Baby Boomer generation. Collectively, this group is expected to spend over $2 billion on travel in 2023. Throughout the pandemic, these demographics saw the largest drop off.
- Millennials and Gen Zers grew their market share of travel insurance purchases by over 15%.
Travelers Will Worry Less about Coronavirus, and More About Airlines
Due to aviation-related travel disruptions in 2022, Trip Cancellation and Travel Delay are becoming bigger concerns for travelers going into 2023.
- Searches for travel insurance including COVID-related coverage dropped by around 2% in 2022, while searches for Cancel for Any Reason dropped by nearly 3% from 2021, and almost 9% compared to 2020.
- Trip Delay coverage had the biggest increase of all searches, due in part to airline flight cancellation issues.