The U.S. is the top destination for travelers, with 1/3rd of Americans traveling abroad in 2017. Despite this, Americans are spending less than they did before the 2008 recession.

Travel insurance data from Squaremouth was recently examined by Forbes Advisor to discover consumer buying patterns and other insights regarding the present status of the travel industry.

The main lesson from the study is that Americans are still planning foreign vacations for 2022 and beyond, and they are spending even more money on them than they would have before the epidemic.

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According to travel insurance sales statistics, sun, sand, and surf are still in high demand among Americans planning foreign vacations, with Mexico appearing as the most popular destination, followed by Turks & Caicos, and Costa Rica.

Concerns about COVID

COVID-19 worries have been at the forefront of travel insurance buyers’ minds. “Americans are planning trips, but they’re being more careful, as shown by how they’re utilizing travel insurance as a strategy to avoid problems,” said Amy Danise, Forbes Advisor’s Chief Insurance Analyst.

Buyers must be selective since not all insurance cover COVID-related problems. COVID-related travel cancellations if you catch the virus shortly before your trip, for example, and COVID-related medical costs if you contract the virus during your trip are usually covered under policies that include pandemic protection.

American travelers' top destinations Top locations for American tourists, based on insurance sales made between March 2020 and July 2021. (Thanks to Forbes Advisor for the graphic)

The study also indicates that pre-pandemic interest in “cancel for any reason” (CFAR) coverage has increased. Those going to the US Virgin Islands, inside the US, and to Italy have shown the most interest in having a CFAR provision added to their policy.

Because normal trip cancellation does not cover cancellations due to travel warnings, CFAR coverage is particularly useful during the current epidemic, but not all travel insurers provide this insurance enhancement. Currently, approximately 11% of travel insurance buyers are looking for plans that include CFAR coverage, compared to just 5% before to the epidemic.

Many consumers are buying travel insurance plans far in advance of their trip, on average five months ahead of time for those going to The Bahamas, for example. Advance preparation is becoming more common among Americans traveling to South Africa, Italy, Germany, France, and Canada.

Increase in interest in Since the start of COVID-19, there has been an increase in demand in “cancel for any reason” travel insurance coverage. (Thanks to Forbes Advisor for the graphic)

Pricing Pandemic

According to Squaremouth’s sales statistics, the most costly vacations booked by Americans are to South Africa, Greece, and Italy. Travelers in the United States seem to be paying more for their travels than they did before to the epidemic, perhaps because they have been cooped up at home for the last 18 months.

In contrast to the pre-pandemic period, costs in many locations have risen, and average passenger expenditure has also grown significantly.

“With vacations being postponed until 2020 and individuals wanting to escape the four walls, Americans are now spending more on travels to a variety of destinations,” Danise added. “For example, before the epidemic, the average travel cost to South Africa was almost $10,000. The average cost of a vacation to South Africa is now about $12,000.”

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