Aussies gearing up to travel despite cost of living

As more Australians look to take to the skies in 2023, new research from Southern Cross Travel Insurance (SCTI) reveals Aussie travel plans are being impacted by the rising cost of living – including the decision by some to jettison their travel insurance. 

According to SCTI’s Future of Travel report 2023, more than eight in ten (83%) Australians that plan to travel overseas or domestically over the next 12 months say they will need to cut their travel budgets down to beat cost of living pressures. 

The research found the overwhelming majority (87%) of Australians say they plan to travel within the next 12 months, with the number of travellers heading overseas increasing by 22% since last year. 

Aussies pack their bags as pandemic troubles ease

Chief executive of SCTI, Jo McCauley says this increase in demand for travel could be attributed to laxing attitudes towards the Covid-19 pandemic. 

“This increase in travel demand could be due to there being less anxiety now among travellers about Covid-19,” says McCauley. “We’re definitely observing a drop in traveller apprehension in our conversations with customers compared to last year. People seem to be adjusting to life post-pandemic.

“It’s unsurprising, following the lockdowns, that Australians still have a huge appetite to get out there and see the world.” 

Cost of living forces some travel concessions  

While post-pandemic apprehension may be lower, the higher cost of living is forcing Aussies to find ways to save money, according to McCauley.

“The rising cost of living is impacting Australians across all areas and travel is no exception, so it’s understandable Australians will be looking for ways to cut costs while still trying to make those trips happen,” she says.

SCTI’s research found that many Australians will be making trade-offs, such as booking cheaper or budget accommodation (39%), travelling less often (37%), and shortening the length of their trips (36%).

The popularity of budget accommodation and hostels has increased since the pandemic-induced lows of the last couple of years which according to SCTI demonstrates that the cost of living now outweighs the health concerns of many. 

In fact, one in ten Australians now say they will try to save money by not buying a travel insurance policy, with millennials twice as likely to travel without it than the baby boomer cohort. 

McCauley lays out their concerns about travellers ditching their insurance to save money. 

“We know that most Australians consider travel insurance as a high priority for overseas trips with 76% rating it a high priority for international travel but only 49% feel the same way for domestic travel,” she says. 

“We’d encourage everyone to ensure they take out travel insurance regardless of where they’re travelling as it could end up saving you significantly in the case of the unexpected. 

“An air ambulance from Bali to Sydney can cost anywhere between $80,000 and $110,000 and not many people can afford a medical bill that size. It’s just not worth taking the risk!”

What does travel insurance cover? 

Travel insurance policies usually provide cover for a range of accidents that can happen whilst travelling away from home. These include: 

• Medical emergencies 
• Cancellations and delays
• Lost or stolen luggage
• Alternative transport expenses 
• Rental vehicle excess waivers
• Public liability. 

What a policy covers can differ depending on the travel insurance provider, whether you’re looking at an international travel insurance policy, or a domestic travel insurance policy, or the level of cover you want. 

If you’re thinking of purchasing a policy for your next trip, it’s really important to compare travel insurance quotes between a few different providers. Not all policies were created equal, but the major insurance benefits will often overlap. 

If you want somewhere to start looking, head over to our best travel insurance page to get an overview of some of the winners of the Mozo Experts Choice Travel Insurance Awards in 2023, or have a look at some of the featured policies below.