Americans are
continuing to make travel a priority this
summer — even if it means spending more and cutting back elsewhere.
New data from
travel insurance comparison site Squaremouth shows that travelers are investing
more money in their vacations this year while also taking extra steps to
protect those trips from unexpected disruptions.
According to the
company's latest numbers, the average trip cost among insured travelers has
increased 24 percent year over year, climbing from $7,794 in 2025 to $9,668
this summer.
The higher
spending doesn't appear to be driven solely by inflation. Squaremouth found
that only 24 percent of Americans say they're spending more because of rising
prices. Other reasons for the increased expenditure include decisions to
splurge on premium vacations, bucket-list experiences or additional trips.
To make those
travel plans a reality, many are trimming other areas of their budgets. More
than half (53 percent) of survey respondents said they're cutting back on
expenses such as dining out, shopping, home improvement projects or investing
in order to fund travel. Shopping and retail purchases were the most common
area (19 percent) where travelers reported scaling back.
International Destinations
Dominate
International
destinations continue to dominate Americans’ summer travel plans, with Italy,
France,
Spain,
Greece,
the United
Kingdom and Japan
all landing among the top 10 most-insured destinations for June and July. The United
States remained the top destination overall, Canada came in third and Mexico
took sixth spot.
A few shifts in
the rankings may point to growing interest in destinations closer to home.
Canada moved up from fourth position to the number three spot this year,
overtaking France, while the Bahamas
climbed from eleventh place to eighth, surpassing both the United Kingdom and
Japan.
Summer Spending
Increases
Travelers heading
overseas are also facing substantially steeper price tags this summer.
Among European
destinations, Greece saw average trip costs jump from $9,737 last year to
$12,730 in 2026. Norway
experienced one of the sharpest increases, with average trip costs rising 34
percent from $11,179 to $14,950.
Adventures further
afield are also becoming quite a bit pricier. Travelers booking safari
vacations in Africa are spending substantially more than a year ago, with
average trips to South Africa rising from $21,908 in 2025 to $24,221 in 2026,
and trips to Tanzania averaging $23,879 this year, up from $19,674 last year.
Travelers
Prioritize Protection
As travelers spend
more on vacations, they're also becoming more proactive about protecting their
investments.
Squaremouth found
that travelers are purchasing travel insurance earlier in the planning process.
The average time between making a trip deposit and purchasing insurance has
dropped from 71 days last year to 62 days this year.
Interest in Cancel
For Any Reason (CFAR) coverage is also on the rise. CFAR purchases nearly
doubled year over year, increasing from 6.9 percent last summer to 13.5 percent
in 2026. According to Squaremouth, all of the top 20 summer destinations have
seen increases in CFAR purchases, suggesting travelers are seeking greater peace
of mind, regardless of where they're headed.
"We're seeing
Americans prioritize travel even as costs rise," said Chrissy Valdez,
Senior Director of Operations at Squaremouth. "Many are adjusting spending
in other areas to afford higher-value trips rather than scaling back on travel
altogether. At the same time, earlier insurance purchasing and growing interest
in flexible coverage show that travelers are taking a more proactive approach
to protecting their investment."
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