Summer Travel Insurance Trends 2023
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Summer Travel Insurance Trends 2023

Summer Travel Insurance Trends 2023. Be prepared for some turbulence when you fly for your summer vacation. As the airline industry struggles with staff shortages, summer travel is likely to be disrupted. Flight cancellations will continue to rise as airlines try to meet the demand. According to the Federal Aviation Administration, the number of flight delays in the New York area is expected to increase by 45 percent compared with last summer.

This summer, it’s not just delays and cancellations that are heating up. According to Squaremouth, an insurance comparison site, the average cost of a summer vacation is 7% more than it was last year.

The Summertime Blues: Flight Cancellations and Delays are on the Rise

Summer vacations can be stressful, with flight delays and higher prices.

Flight Delays

According to FlightAware, in 2022 23% of the flights from 10 major airports will be delayed. Flight tracking site FlightAware reported that this was an increase of 5% over the previous year, when 18% flights were affected by pandemic.

Flight delays aren’t going to stop anytime soon. The Transportation Security Administration has predicted that summer 2023 air travel will exceed pre-pandemic volumes. There will be chaos on the tarmac this summer, with significant delays predicted (a 45% rise) in the Northeast corridor because of a lack of air traffic control.

The Federal Aviation Administration predicts significant delays in summer 2023. Travel delays were the top travel insurance claim of last year.

Travel Delay Insurance will reimburse you for additional costs in the event that your trip has been delayed due to a listed reason. This is only applicable if it occurs after an agreed-upon waiting period (such as 6 hours) for your benefits.

Daniel Durazo is a spokesperson for Allianz Travel. Travel insurance policies that include travel delay coverage are important because feeding the children at the airport can be expensive.

Squaremouth reports that half (50%) the paid insurance for summer 2022 trips was for disruptions after departure, such as delays in travel, interruptions of journeys, and missed connections.

Flight Cancellation

Airline operations are still being affected by staffing issues and maintenance problems. Flight cancellations are likely to continue this summer, as these problems remain unresolved and potential pilot strikes at American Airlines United Airlines and Southwest Airlines are brewing.

Squaremouth reports that pre-departure cancelations accounted for 16 percent of all paid claims made last summer. This makes it the second most popular travel insurance claim.

The hurricane season begins on June 1 and adds to the chaos.

Severe weather may affect travel to the Caribbean and Mexico, as well as southern U.S. states. Scott Adamski is the spokesperson for AIG travel.

Trip Cancellation Insurance will reimburse you for non-refundable, prepaid trip costs, if your trip is cancelled for an listed reason in your insurance policy. These include severe weather conditions, plane mechanical failures, and strikes. If you have to cancel a flight due to an airline strike, for example, your travel insurance can reimburse you if the cancellation occurs within the policy period.

The insurance does not cover all cancellations. If there’s a computer outage in air traffic control and you cancel your trip because of it, the trip cancellation benefit may not cover it, as it is not included in the policy.

The Top Travel Destinations for Summer 2023

Squaremouth data shows that 82% of the travel insurance purchased for trips between June 1, 2023 and August 30, 2023 are international.

Terra Baykal is the spokesperson of World Nomads and she says Europe will be a hot destination this summer. Baykal says that 45% of U.S. travellers who already bought travel insurance to cover their summer vacations plan to visit Europe. The top European destinations include Italy and the U.K.

Our policyholders who are going to Europe bought their travel insurance as solo travelers, couples, and families. Seventy-six percent of our policyholders travel for between one and three weeks. This is typical of American vacation time.

The Rank Summer 2023 travel destinations
1 United States
2 Italy
3 Great Britain ( U.K.
4 France
5 Canada
6 Mexico
7 Spain
8 Ireland
9 Greece
10 Japan
11 Germany
12 Iceland
13 Bahamas
14 Israel
15 Norway
16 Switzerland
17 Portugal
18 South Africa
19 Costa Rica
20 Kenya
Squaremouth, calculated from travel insurance sales between May 11-2022 and May 11-2023 for trips occurring June 1-30, 2023.

The cost of Summer Vacations is on the Rise for the Third Year.

In the last three years, summer vacation costs have increased. In 2023, the average cost of a trip insured through Squaremouth will exceed $9,000

Squaremouth’s data shows that the average cost of a summer vacation in 2023 will be 10% more than it was in 2019. The cost of summer trips in 2019 is expected to be 27% more than it was during 2021’s pandemic.

The Average Cost of Summer Vacations by Year

The Year Cost of a trip Change in % from one year to the next
2023 $9,333 7%
2022 $8,742 19%
2021 $7,366 -11%
2020 $8,242 3%
2019 $8,459
Squaremouth’s travel insurance data was compared to the sales of travel policies on their site between April 19 and June 23, with dates for travel from September 21.

Curt Carlson is the spokesperson of Trawick international. He says that the lack of labor is also affecting travel costs.

The American Hotel & Lodging Association’s 2023 State of the Hotel Industry Report, for example, states that staff shortages and inflation continue to be a problem in the hotel industry. Accommodation costs can increase as a result. According to travel website Hopper, for example, the price of an average hotel room has increased by 11% in comparison to last year.Stay ahead of the game by keeping up with the latest Summer Travel Insurance Trends 2023 for a worry-free and well-protected travel experience.

He says that the combination of increased trip costs and more disruptions makes it necessary for travelers to insure their investments. Carlson says that travelers should consider having coverage for trip cancellation, interruption and baggage delays.

The amount spent on travel insurance also increases

Durazo, of Allianz, says that travelers have been able to combine flexible policies for remote work with their travels, even though inflation has reached record levels.

Squaremouth’s data shows that the average amount spent on summer travel insurance has grown by almost 7% compared to last year and 18% since 2020. Travel insurance is largely determined by the costs of the trips being insured. As trip costs increase, so will the cost.

The Average Travel Insurance Cost for Summer Vacations

The Year The average amount spent per trip on travel insurance Change in % from one year to the next
2023 $564 7%
2022 $528 17%
2021 $451 -9%
2020 $493 3%
2019 $479
Squaremouth examined travel insurance policies purchased before April 19 with dates of travel between June 23 to September 21.

Travel insurance won’t cover you against rising prices, but it will provide you with a safety net in case you experience an unexpected loss of money.

Pack Travel Medical Insurance on International Summer Trips

Travel Medical Insurance has become more important as the number of travelers who travel abroad during summer increases.

The Harris Poll poll of over 2,000 travelers abroad revealed that a travel health plan is essential if you are going to need a passport.

Pina explains that “most people plan their perfect vacation for hours, from the flight, the hotel, the itinerary and even the small details, like making sure the cellphone works, but very few people consider the possibility of an emergency medical situation abroad. This happens more often than you might think,” Pina states. According to our Harris Poll survey, one out of four people have experienced a medical emergency while traveling abroad. This figure increases to 4/10 amongst those who traveled overseas in the last five years.

Pina reported that when Pina asked participants how they planned to pay for medical care abroad, 46% said they expected to use domestic insurance, and 18% didn’t have a plan.Stay ahead of the game by keeping up with the latest Summer Travel Insurance Trends 2023 for a worry-free and well-protected travel experience.

Pina warns that those who plan to use a U.S. healthcare insurance policy may be unaware of coverage gaps which could lead to emotional or financial stress.

Most domestic health insurance plans sponsored by employers do not cover coverage overseas. Pina says that even health plans with international coverage can have service and coverage gaps. You may have to pay for treatment abroad upfront and submit a reimbursement claim later. Medical care abroad can be expensive because it is considered outside the network of U.S. insurance plans.

Pina also says that a medically needed medical evacuation will not be covered by a standard domestic health insurance plan. She says that if a traveler needs a medical emergency, they’ll likely have to pay upfront for the evacuation and make all of the arrangements themselves. A medical evacuation can cost anywhere from $10,000 up to $100,000, depending on where you are and the situation.

Squaremouth’s data shows that over a quarter of all travel insurance payouts for the summer last year (26%) were due to medical emergencies. Squaremouth paid out $223,000 for a travel insurance claim related to medical evacuation. Medical evacuation claims averaged around $83,000.Stay ahead of the game by keeping up with the latest Summer Travel Insurance Trends 2023 for a worry-free and well-protected travel experience.

Boomer Summer Travel Is Booming

This summer, more baby boomers will travel than they did in 2022 or 2021. Meanwhile, the number of Gen X, Gen Z, and millennials who take summer vacations has decreased for the second consecutive summer.

This year, baby boomers make up 40% of summer travellers. That’s compared with 33% in the past summer and 29% by 2021.

The percentage of American travellers
Generation 2023 2022 2021
Baby Boomers 40% 33% 29%
Gen X 22% 24% 25%
Gen Z 15% 18% 19%
Millennial 12% 15% 16%
Silent 6% 4% 5%
Squaremouth looked at travel insurance policies purchased before April 19 with dates of travel between June 23 and September 21.

Carlson, of Trawick International, says that “baby boomers from the U.S. travel to Western European and Caribbean countries like France and Portugal.” He says that the Mediterranean, including Italy, Greece, and France, is also a popular destination for this group. He says that these are usually bigger trips. Older millennials, Gen Xers, and Gen Zers, on the other hand, take smaller trips. They still go to Mexico in large numbers and also travel to France, Costa Rica, and the Caribbean.

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