Economic shifts and disruptions shape NZ travel plans and insurance preferences – SCTI
Economic shifts and disruptions shape NZ travel plans and insurance preferences – SCTI | Insurance Business New Zealand
Travel
Economic shifts and disruptions shape NZ travel plans and insurance preferences – SCTI
Report unveils key factor considered when selecting insurance
Travel
By
Roxanne Libatique
The “Future of Travel” study, undertaken by Southern Cross Travel Insurance (SCTI) in partnership with YouGov, has shed light on the travel patterns and preferences of New Zealanders, with a special emphasis on the role of travel insurance in the current landscape.
The research, which surveyed 1,023 New Zealanders aged 18 and above in January, provides insights into how the cost of living and travel disruptions influence travel plans and insurance considerations.
New Zealanders keen to travel despite challenges
The findings indicated a strong intent among New Zealanders to continue traveling despite economic pressures and the uncertainties of disruptions.
While 78% of respondents travelled domestically and 44% internationally in the past year, the study revealed a sustained interest in travel, with over 80% planning domestic trips and 61% aiming for overseas travel in the next 12 months. This continued interest in travel highlights the importance of insurance in mitigating risks associated with disruptions and unforeseen events.
The study also delved into the impact of the cost of living on travel decisions, showing a trend towards more budget-conscious travel planning.
Key factor in selecting travel insurance
Despite financial constraints, the desire for travel remains high, with respondents looking for ways to maximise value. This includes choosing travel insurance that offers both affordability and the right level of coverage.
In fact, price emerged as the most critical factor in selecting travel insurance, with 79% of respondents ranking it among their top three considerations. This prioritisation reflects a broader shift towards cost efficiency in travel-related decisions.
Travel disruptions in New Zealand and overseas
Moreover, the research underscored the prevalence of travel disruptions, noting that 53% of New Zealand’s international travellers and 42% of domestic travellers experienced issues such as cancellations, extreme weather events, and illness in the last 12 months. These challenges underscore the importance of travel insurance as a tool for peace of mind.
The ability to choose different levels of coverage, a factor ranked highly by 62% of participants, illustrated the demand for customisable insurance options that can address a wide range of concerns, from minor inconveniences to significant emergencies.
“New Zealanders show very little sign of slowing down when it comes to travel, even in the face of the increased cost of living. Indeed, for some, travel remains the one key thing they will do with their discretionary spend,” the report said. “What is inescapable is disruption – with 50% of all travellers facing delays, cancellations, and dramas due to extreme weather, airline issues, or illness. It’s essential travellers pack travel insurance, helping them face problems with more peace of mind.”
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