2018 Trends Show Traveler Behavior is Changing

The past year was marked by major storms, natural disaster and an uncertain economy in many places, all of which had an impact on traveler behavior.

According to just-released customer data from Squaremouth a variety of new traveler trends emerged over the course of 2018. Here are some of the highlights.

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Travelers Spent Less on Trips

The recent sluggish economy led to an overall decrease in how much travelers were willing to lay out for travel in 2018.

For the first time in six years, travelers spent less on their trips than the previous year, with the average trip cost declining by three percent.

Despite decreased spending, more travelers chose to protect their trip costs with travel insurance in 2018. Squaremouth reported a 28 percent increase in cancellation-style policy sales over last year.

Travelers Stayed Close to Home

U.S. residents preferred to travel within North America in 2018, which may have been a result of the uncertain economy or safety threats abroad

After the United States, the next three most popular 2018 destinations were Mexico, Italy, and Canada

Also notable, possibly tied to the first trend identified, the cost to travel to these destinations decreased by an average five percent over last year.

Weather and Natural Disasters Were a Top Concern

Major natural disasters in 2018, such as hurricanes Florence and Michael, and the California wildfires, had more travelers worried about having to cancel their trips unexpectedly.

The number of travelers who bought travel insurance in 2018 specifically for weather or a natural disaster increased by 13 percent over last year.

Traveler concern over weather surpassed terrorism as the top trip cancellation concern, Squaremouth reported.

New Destinations Gain Ground

More travelers, particularly Millennials, are opting for destinations that offer cultural and historical experiences over traditional locations.

To that end, tourism to such places as Egypt, Morocco, and Japan increased 144 percent, 73 percent, and 47 percent, respectively in 2018, compared to last year

Younger generations are leading the charge to these locations, which show a 65 percent increase in Millennial travelers over last year

Cruises Continued to Gain Popularity

The cruise industry boom continued in 2018, according to Squaremouth, with more travelers of all ages are choosing to spend their vacations aboard big ships.

At the same time, the number of travelers buying cruise insurance increased by 22 percent over last year. In fact, travelers purchasing travel insurance specifically for cruises has increased every year since 2012

Finally, the number of travelers over 70 years old taking cruises has doubled since last year, followed closely by Baby Boomers, Gen X and Millennials.

All of the trends and data are based on travel insurance policies purchased through Squaremouth between January 1, 2018, and December 17, 2018.