Zoom Travel Insurance Reveals Travel is a Priority for Young Australians

Overview

A new report released by Zoom Travel Insurance reveals that travel remains a top priority for young Australians, despite facing ongoing economic challenges, such as a weakening Australian dollar.

Key Findings

72% of young Australians consider travel a necessity regardless of rising costs.

According to Natasha Sullivan, Marketing Manager at Zoom Travel Insurance:

“Gen Z values the personal growth and social currency that come from seeing the world, despite the rising cost of living and a weakening Aussie exchange rate.”

Adjustments Due to Financial Challenges

Sullivan points out that many young travelers are modifying their travel plans due to continued financial pressures.
In January, the Australian dollar sank to a five-year low against the Euro and British pound, making international travel more costly, especially to Europe and the USA.

“Due to a weak Aussie dollar, students and backpackers will have to tighten their budgets even more, particularly when visiting the US, the UK, and Europe. Many may opt for destinations such as New Zealand, where the Aussie dollar is still strong, or budget-friendly spots throughout Southeast Asia,” Sullivan stated.

Generational Spending Patterns

The Zoom Travel Insurance report is reinforced by the Southern Cross Travel Insurance’s Future of Travel 2025 report, which indicates a shift in travel spending habits across generations:

45% of Australians aged 18-44 prefer to travel over buying a home.
In contrast, those aged 45 and older are postponing trips to retain cash for family support, particularly in New South Wales and Queensland.

Rising Interest in Travel Insurance

Zoom Travel Insurance noted an uptick in policy adoption among young travelers:

“In the past year, we’ve observed an increase in Gen Z customers, along with more claims from young travelers experiencing issues such as lost luggage and medical emergencies. Recognizing these risks, Gen Z sees the value in travel insurance,” Sullivan remarked.

She also emphasized that while younger travelers have historically been less likely to purchase travel insurance, a shift is evident:

“Travel insurance is no longer just a nice-to-have; it’s a must-have. The minor upfront cost of insurance is minimal compared to the unexpected expenses that can arise during travel.”