Gen Z are making a big mistake when it comes to travel and while they’re doing it to save money, it can end up costing them big time.
Aussies’ appetite for travel hasn’t diminished despite cost of living pressures, with 91 percent of Australians planning to travel this year.
However, while the younger generation has the travel bug too, there are a few things they are willing to forgo to help keep costs down such as taking fewer trips, splurging less on accommodation, booking cheaper destinations, and the most “concerning” — not purchasing travel insurance.
New research from Southern Cross Travel Insurance (SCTI) revealed that 2.4 million Aussies say they won’t purchase travel insurance as a way to save costs due to financial pressures.
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But, it can end up having the opposite effect, costing a lot more if things go pair-shaped on your trip.
“We’re seeing a concerning trend as Gen Z appear to be ditching travel insurance,” Jo McCauley, CEO at Southern Cross Travel Insurance told news.com.au
“According to our research twice as many Gen Zs are saying they won’t be purchasing travel insurance this year compared to Baby Boomers.
“We’re also seeing this trend represented in our policy sales with Gen Z only representing 17 per cent of our policyholders over the past 12 months, which is significantly less than other generations.”
She said the categories claimed for the most often by Gen Z policyholders are lost or stolen baggage and personal belongings, medical and evacuation costs and changes to journeys.
“Travelling without travel insurance simply isn’t worth the risk,” Ms McCauley warned.
“We’ve seen medical bills in the hundreds of thousands of dollars for simple injuries like a broken bone. It’s a cliche but, it’s true — if you can’t afford travel insurance then you can’t afford to travel.”
She said she knows how tempting it might be to skimp on travel insurance to save a few dollars, but reinforced it’s not worth the risk.
Aussietravel blogger Jacki, who has clocked 1.5 million likes on TikTok for her jetsetting content, revealed she needed to have dentistry work done twice on a trip to Europe and was thankful she had taken out travel insurance.
Jacki said the three things she always looks out for in an insurer is if they cover lost luggage, lost phones, dentistry and flight cancellations.
“So, my biggest fear when I travel is getting my luggage lost and turning up somewhere and having nothing and no money,” she explained.
“I always look at how much they cover for luggage and how long it takes them to give you the money for lost luggage — and how quick the process is to let them know that your luggage has been lost.”
She said the same goes for losing your phone, adding that she lost it during her Europe trip, but was lucky to have found it again.
“I obviously always look at medical cover because that’s what every travel insurance covers,” she said.
“But I also take extra care to look at dentistry cover because I have actually had to visit the dentist twice while traveling and it can get super expensive.
“I had a filling in Sweden and somehow chipped my front tooth on a night out in Greece and both times it was covered by dentistry, so always look at that too.”
Ms McCauley, from SCTI, said travel insurance doesn’t have to be expensive.
“We offer an International Medical Only product which is a more cost effective option for those that are looking to protect themselves against medical costs while overseas but aren’t interested in cover for lost luggage or flight cancellations. It’s a great option for the more budget-conscious traveler.”
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The Future of Travel 2024 research, commissioned by SCTI, also revealed that 91 percent of Aussies plan to travel either domestically or overseas in the next 12 months.
However, around 43 percent say they are less likely to travel interstate over the next 12 months due to the rising cost of living, and more than half (53 percent) say they are less likely to travel overseas this year for the same reason – both significant increases on 2023 figures (37 percent and 48 percent respectively).
It showed that Aussies plan to travel overseas for longer but take fewer trips compared to last year. The length of time Australian travelers intend to spend overseas has increased from 14 days per trip in 2023 to 16 days per trip in 2024. However, the average number of trips they take will be less than those who traveled last year.
According to SCTI data the most popular length of time for people to travel overseas is between seven and 13 days, with 35 per cent of policies selecting this time frame. This is closely followed by 14 to 20 days (2 percent) and 21 to 27 days (17 percent).
