Those generations are notably more willing to purchase coverage than those older than them.
Even in the face of inflation, Millennials and Gen Z are headed away on vacation and they are purchasing travel insurance to make sure that what they spend is covered against the unexpected.
These two generations are far more willing to pay more to protect their vacation investments.
Across all generations, 73 percent of people are willing to pay for travel insurance or refundable booking options for their trips, according to a recent report by the Bank of America. That said, Millennials and Gen Z are even more willing to do so, at 83 percent and 87 percent respectively. This data was based on the results of a survey of 2,003 American consumers. It was held in June 2023.
“I think a lot of it goes to the lifestyle of the different generations and where they are traveling,” said Bank of America’s head of consumer and small business products Mary Hines Droesch.
Though a similar report based on a previous questionnaire by the Bank of America worded its question differently, it would seem that the most recent results indicate an increase in willingness to pay for this coverage.
This is an interesting trend in travel insurance, as we have been moving away from the worst of the pandemic.
The previous study was conducted in March 2022, which was notably closer to the worst of the pandemic, leaving one to assume that people would be more willing to pay for coverage for their trips. After all, the risks associated with travel delays and cancellations were never more clear than they were in 2020 when COVID-19 spread like wildfire throughout the world, upending the entire travel industry.
Still, it appears that at least among Millennials and Gen Z, people are becoming only more willing to purchase coverage when they head out on their trips.
The March 2022 study surveyed 2,020 consumers regarding their spending and savings attitudes. Among the respondents, 54 percent who said they intended to take a trip said that they would also purchase travel insurance. This included 65 percent of the Millennial respondents and 73 percent of the Gen Z participants.
