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1Cover Travel Wrap up 2023-2024


While 2022 was a bumpy ride, we can truly say that 2023 is the year that travel fully recovered. In this report, you will discover a comprehensive overview of the travel landscape, delving into trends, behaviours, and the key factors influencing Australians’ holiday choices in 2023, as well as a glimpse into what to expect in 2024.

Drawing upon more than two decades of experience as one of Australia’s premier travel insurers, we have gathered invaluable insights into the travel industry and the behaviours of Australian consumers. The report draws on our own research for data-driven insights and third-party data sources to analyse the state of the travel sector.

As we look forward to the coming year, the prevailing sentiment regarding global travel is overwhelmingly positive. Despite the lingering effects of the pandemic and the challenges posed by escalating inflation, consumers exhibit unwavering confidence in their travel plans, with a significant majority (72%) expressing a commitment to travel in 2024. While financial uncertainties persist, they have not dampened the spirit of Aussie
wanderlust; rather, they have shaped consumer decisions, placing emphasis on cost considerations as primary concerns.

As the travel industry continues its revival, we are excited about the prospects of the year ahead. Our aim is to offer valuable insights and clarity into the future of travel.  We invite you to delve into this report to gain a deeper understanding of the evolving landscape. 

1cover travel index

 

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Where Aussies Travelled in 2023

2023 saw a continued travel resurgence, with visitor numbers surpassing pre-pandemic figures. Travel searches were at least 1.6 times higher than pre-pandemic levels, and at least 72% plan to travel in 2024 with more than half (52%) planning to travel more than they did in 2023.  

Of those committed to travel, 45% say they are more likely to travel domestically while 40% prefer to travel abroad. And while domestic travel remains high, in 2023 Aussies returned in earnest to some of their much loved overseas destinations, with Bali taking out the top spot followed by the USA, Fiji, the UK, and Japan. Europe also experiences a resurgence, with Italy and France peaking during the European summer.   

The top places Aussies loved to travel in 2023 were:

1. Bali

2. Australia

3. USA

4. Fiji

5. UK

6. Japan

7. Thailand

8. New Zealand

9. Singapore

10. France

 

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2023 travel Insurance Statistics

 

In the aftermath of the pandemic, it’s clear that travel insurance is now considered essential for overseas trips. According to the data, three quarters (75%) Australian travellers consider travel insurance a high priority and 39% consider it a higher priority than they did prior to the pandemic.

When asked about their primary reasons for buying travel insurance a third (33%) said that medical cover would be their top reason for purchasing cover followed by flight cancellation and delays (15%) and loss of luggage and belongings (9%).

According to 1Cover data, travellers are booking their trips in advance, and buying travel insurance roughly
10 days prior to their departure date and are commonly travelling for roughly 20 days at a time.

Top 5 most common travel insurance claims:

  1. Lost or damaged iPhones
  2. Medical costs
  3. Flight delays
  4. Cancellation
  5. Lost luggage and possessions

Top claim destinations:

- USA

- Canada

- Indonesia

- Japan

- Thailand

1cover travel index

 

cruising is back

 

After some challenging years, the cruise industry has rebounded in leaps and bounds.

Industry body CLIA reports that demand has surged beyond pre-pandemic levels, with intent to cruise higher than it was in 2019. 85% of cruisegoers are also planning to cruise again, which is a six per cent increase on pre-pandemic numbers.

The 25% rise in cruise policies suggests increasing consumer caution and a desire to protect against common cruise risks such as illness and viral outbreaks. At least 68% of those surveyed by 1Cover said that medical cover was a key reason for purchasing cruise cover.

 

 

 

 

solo travel is on the rise

One trend has emerged clearly in 2023; the rise and rise of solo travel.

Whether as a response to pandemic restrictions, changing demographics or technological freedoms, solo travel is soaring, with search data showing a staggering 761.15% increase in post-pandemic solo travel.

According to 1Cover data at least 40% have either travelled solo or are planning to do so in the future, driven by the desire to relax alone, while focusing on wellbeing and enjoyment. Women in particular, are at the helm of the solo travel movement, with two thirds of women surveyed (65%) expressing interest in or intending to take a solo trip.

Those who were not in favour of travelling solo cited ‘safety’ as a main deterrent (25%) followed by concerns over loneliness (16%) and language barriers (­7%).

 

Next stop 2024

Repeat bookers: This year will continue to usher in an increased resurgence of travel. 2023 recent explorers are also showing eagerness to travel again in 2024. 

New hot destinations: Traditional hotspots like Bali and Fiji will maintain popularity while visitors to Japan, Costa Rica and Peru are predicted to rise.

More solo travel: Interest in solo travel will continue to gain momentum, particularly with women.

Cruising surge: Passenger numbers are expected to soar with the industry evolving to creasingly appeal to a broader demographic.

Shift in seasonality: Peak travel times are likely to shift, with mid-year trips surpassing end-of-year travel.

Leap in adventure cover: Adventure holidays are predicted to rise with a spike in adventure cover purchases.

 

 

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Appendix

1Cover customer data

1Cover Pollfish consumer survey, NOV 2023

Google travel insights & competitive analysis report NOV 2023

Google travel report: embracing new frontiers with cautious optimism 

Google solo trend data

CLIA State of the Cruise Industry Report 2023

 

 

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