Younger generations more likely to take micro-cations while older generations spend more per trip.
My friend Paige, who works for Seven Corners, a leading travel insurance and specialty benefits company, always has the latest. This time she shared the most up to date data available about travel trends in 2021. For those who want to know, it’s fascinating to delve into what last year revealed in terms of travelers’ purchasing habits, how their age influences behavior, average trip cost, and top travel destinations. Recently Seven Corners gathered all the relevant information needed to show the following key trends for 2021.
Purchasing behaviors and travel trends are affected by age
Buying patterns for travel insurance vary according to the age of the purchaser. Travelers who buy direct from the website, as opposed to using a licensed travel insurance agent, tend to skew almost eight years older, with the average age of a website purchaser at 42 and the average age of consumers who use an insurance agent at 50. This preference for older consumers to seek assistance for a travel insurance purchase is the highest for 66 and older, with this age group representing almost 20% of plans sold by insurance agents.
Additionally, older consumers typically spend more for trips, with the average trip cost increasing for each generation starting with millennials. Younger baby boomers spend an average of 45% more than millennials. The over 66 age group spends even more, averaging 76% more on trip expenses than millennials. The average trip cost for millennials is $1,843, and the average trip cost for those 66 and older is $3,243.
Micro-cations have increased in popularity
Based on policies sold by Seven Corners, micro-cations grew in popularity in 2021, with a 74% increase compared to 2019 and a 66% increase compared to 2020. A micro-cation is defined as a vacation of less than five nights. These short trips are especially popular with millennials, with 30% of their insured trips being five days or less in length. Generation X and Generation Z follow next with micro-cations representing 20% and 19% of their vacations, respectively. This trend with baby boomers is drastically different, with micro-cations representing only 12% of their insured vacations.
Most popular travel destinations for 2021
Destinations for micro-cations have changed, mainly due to the influence of COVID-19 and resulting travel restrictions. In 2021, Turks and Caicos was the No. 1 micro-cation destination, and it was the most popular option for all generations except travelers 66 and older, who favored Mexico as their first choice for travel. Millennials preferred Turks and Caicos, choosing it for 61% of their international micro-cations. Turks and Caicos was not in the top 30 most popular destinations pre-pandemic; this change represents a significant shift for travelers.
Mexico was the second most popular travel destination in 2021, falling from No. 1 in 2019. Costa Rica was the third most popular location in 2021, jumping from 15th place in 2019. Micro-destinations that lost favoritism include Canada, Puerto Rico, Ireland and the United Kingdom, which all fell from the top 10 spots, most likely due to the restrictions resulting from COVID-19.
Introduction to Interruption for Any Reason (IFAR)
From 2019 to 2020, the travel insurance industry saw a large increase in consumer preference for Cancel for Any Reason (CFAR), as travelers learned it is the only option to cancel a trip due to fear of travel. While this helps travelers before they depart on a trip, it does not address a similar need that could arise while traveling.
To provide a similar option to consumers for unexpected events that can occur during a trip, Seven Corners added a new benefit, Interruption for Any Reason (IFAR), to their trip protection product line in early 2021. To date, the adoption rate is strong, with a little more than 17% of direct consumers choosing to add it to their purchase.
Generationally, Seven Corners sees that IFAR is most popular with millennials and Generation X, each having adoption rates of 26% and 28%, respectively. The addition is least popular with baby boomers, who have an adoption rate of only 12%.
For more detailed information on purchasing travel insurance to cover COVID-19, Seven Corners has information on the coverage provided by their RoundTrip products related to potential quarantine considerations. To learn more about how Seven Corners’ travel medical and trip protection products address the continuing impacts of the pandemic, visit their specific Coronavirus page.
About Seven Corners
Founded in 1993, Seven Corners, Inc. is an innovative and service-focused travel insurance and specialty benefit management company that serves a global market. Based in Carmel, Ind., the company offers a variety of customized travel insurance solutions to domestic and international travelers. Seven Corners also administers benefits for U.S. government programs.