New research reveals travel insurance as the ‘big loser’ in latest trends

Travel insurance documents to help travelers feel confident in travel safety.
By Zach Havard


Southern Cross Travel Insurance has released new data that highlights the ever rising cost of living as having a significant impact on Australians travel plans in 2023.

New studies reveal more than eight in ten Australians who plan to travel over the next 12 months admit they will need to reduce travel costs as a result of the rising cost of living.

The Future of Travel 2023 research was commissioned by Southern Cross Travel Insurance to better understand if travel behaviours in Australia have changed since emerging from the pandemic last year.

Australians’ appetite for travel remains high, with nearly 87 per cent planning to travel either domestically or overseas in the next 12 months, however, nearly 37 per cent of Australians say they are less likely to travel interstate over the next 12 months due to the rising cost of living while half say they are less likely to travel overseas this year for the same reason.

For those who plan to travel over the next 12 months but need to reduce the cost of travel due to the rising cost of living, trade-offs will include booking cheaper or budget accommodation, taking fewer trips overall and taking a shorter trip.

Research conducted last year by Southern Cross Travel Insurance showed a sharp drop in the appeal of budget and hostel type accommodation as people were wary of COVID-19. However, in 2023, consideration for budget accommodation has increased as COVID-19 becomes less of a concern for travellers, with cost of living outweighing any health concerns travellers may previously have had.

The most concerning finding from the research is that 1 in 10 Aussies claim they won’t purchase travel insurance as a way to save costs due to financial pressures brought about by the rising cost of living, and millennials are twice as likely as baby boomers to say they would reduce their travel costs by not buying travel insurance.

“It’s unsurprising, following the lockdowns, that Australians still have a huge appetite to get out there and see the world,” CEO, Southern Cross Travel, Jo McCauley, said.

“But 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.

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

“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!”

Key findings from the research include:

  •  87 per cent of Australians plan to travel in 2023
  •  83 per cent of Australians need to reduce the cost of travel due to the rising cost of living
  •  37 per cent are less likely to travel interstate over the next 12 months due to the rising cost of living
  • 48 per cent are less likely to travel overseas over the next 12 months due to the rising cost of living
  • Trade-offs will include booking cheaper or budget accommodation (39 per cent), taking fewer trips
    overall (37 per cent), taking a shorter trip (36 per cent) and not taking out travel insurance (10 per cent)

Latest News

  • Conferences
  • News

TravelManagers wraps up ‘best conference yet’ and reveals 2025 location

TravelManagers’ annual conference concluded in Cairns on Saturday evening with a gala awards dinner. Executive general manager, Michael Gazal, described this year’s conference as its biggest and most successful ever.  “Despite their demanding workloads, more than half of our total network of personal travel managers (PTMs) have invested in their future businesses by coming to […]

  • Sustainability
  • Wholesalers

The Intrepid Foundation launches appeal to support Northern Vietnamese communities following Typhoon Yagi

Intrepid Travel has launched an emergency appeal through its not-for-profit, The Intrepid Foundation, to support impacted communities in Northern Vietnam following Typhoon Yagi, which made landfall on 7 September, 2024. All funds raised through the appeal will go directly to grassroots organisation Blue Dragon Children’s Foundation, to provide immediate relief to thousands without shelter, food […]

  • Aviation

Philippine Airlines and VietJet look to community connection near Western Sydney Airport

Both Philippine Airlines and VietJet will explore services from Western Sydney Airport with the airport’s proximity to the Filipino and Vietnamese diaspora in Sydney potentially beneficial to both carriers. Philippine Airlines VP revenue management and commercial planning Alex Featherstone, speaking at the CAPA Airline Leader Summit Australia Pacific, said the carrier would “explore” the potential […]

  • Tourism

Australian Cycle Tours adds new cycle trip to the Murray to the Mountains Rail Trail

Australian Cycle Tours has added a new, extended cycle trip that includes all sections of the popular Murray to the Mountains Rail Trail. The new trip commences in Beechworth with the first two days cycling with a transfer back to Beechworth, before continuing to Myrtleford and Bright, with a cycle on the newest sections of […]

  • Events
  • News

Anangu Communities Foundation raises $75,000 at its third annual Sydney fundraiser

Generous supporters gathered at the Sofitel Sydney Darling Harbour for the third annual Anangu Communities Foundation Sydney fundraiser to help raise $75,000. Voyages Indigenous Tourism Australia administers the Foundation which so far has funded over $3 million in projects to support Anangu communities of Central Australia with a focus on building community capacity in healthcare, […]

  • News
  • Travel Agents

‘Virtuoso on Tour’ photos: Virtuoso showcases its best to agent base

Virtuoso hosted its second annual Virtuoso On Tour,  a destinations event at the ICC in Sydney showcasing tour operators, tourism boards and more to its agent family. The event is designed for travel agency members in Australia and New Zealand to network with Virtuoso partners across the globe. It housed six destination-themed pavilions (Australia & […]

  • Destinations
  • Tourism

The NT tops list of hidden gem attractions out of Aussie states

As Australia steps into spring with temperatures set to rise above average, new research has revealed the states with the most must-see hidden gem attractions with the great outdoors proving a winner! The study, conducted by travel and luggage experts at Bounce, used Tripadvisor and search data to uncover Australia’s most treasured destinations. The Northern […]

  • Health & Wellness
  • Hotels

Fusion Hotel Group celebrates World Wellness Weekend

Vietnam’s wellness-inspired Fusion Hotel Group is celebrating World Wellness Weekend from 20-22 September with yoga and other healthy living activities. Fusion Hotel Group has introduced a series of events and activities for guests at five of its luxury beachfront resorts in Vietnam to World Wellness Weekend. The exclusive offers include yoga, meditation, onsen baths, Zumba, […]

  • Hotels

InterContinental Wellington unveils new Health Club and Classic Rooms makeover

InterContinental Wellington has announced the completion of its newly revamped Health Club and a stylish makeover of its Classic Rooms. Bringing a new level of luxury to its 79 Classic Rooms, including eight accessible rooms, the hotel has meticulously re-styled these spaces in collaboration with Y-6, an acclaimed Interior Architecture and Design studio based in […]