The COVID-19 Pandemic has changed just about everything with the travel industry, including who is traveling and why. One way industry watchers are tracking these changes is by looking at how and why people buy travel insurance as travel insurance tells a tale of changing travelers.
In a recent report, Squaremouth recorded a drastic decline in travel by older generations, as younger travelers become the most insured demographic in the US amidst COVID-19.
How COVID-19 Has Impacted Travel Across Generations
Prior to the pandemic, most insured trips were for the 50 and above age bracket. Now, 60% of travelers purchasing travel insurance are under the age of 50.
“We have never seen younger travelers driving the majority of travel insurance purchases before,” said Megan Moncrief, CMO of Squaremouth. “Historically, the typical travel insurance customer was retired, with time and money to travel, taking expensive and longer international trips.”
Younger Generations Protecting Trip Investments
Surprisingly, it is the youngest generation of travelers, age 21 and under, that are responsible for the majority of travel insurance purchases during the COVID-19 pandemic.
- Travelers 21 and under account for roughly a quarter of all travelers purchasing travel insurance since May.
- Before the pandemic began in January, this young generation made up just 11%.
All Generations Have Same Top Concerns
Despite age differences, travelers share the same main concerns across the board.
- Coverage for the coronavirus pandemic and Cancel for Any Reason were top of mind for all generations.
- In July, 40% of travelers purchased a policy that specifically included cancellation or medical coverage in the event they contract COVID-19 or are quarantined.
- Since February, 20% of all policies purchased include the pricey but extensive Cancel for Any Reason upgrade, a 210% increase compared to last year.
So travel insurance tells a tale of changing travelers as older people travel less and millennials are now traveling more.
