Zoom Travel Insurance says travel still a top priority for young Australians

A new report released by Zoom Travel Insurance reveals that travel remains a top priority for young Australians despite current economic issues, including a weakening Australian dollar.

The Australian insurance firm conducted a survey among 500 young Australians, revealing that 72 percent still consider travel a necessity regardless of mounting costs.

According to marketing manager Natasha Sullivan: “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.”

Making necessary adjustments

Sullivan pointed out that a number of young travellers are making adjustments due to ongoing financial challenges.

It may be recalled that, in January of this year, the Australian dollar plummeted to a five-year low, losing ground against the Euro and the British pound.

As a result, international travel has become more expensive for Australians, particularly to destinations in Europe and the United States.

Sullivan said: “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,” she said. “As a result, many may opt for destinations such as New Zealand, where the Aussie dollar is still strong or budget holiday hotspots throughout Southeast Asia.”

A generational shift in spending patterns

The Zoom Travel Insurance report was further bolstered by Southern Cross Travel Insurance’s Future of Travel 2025 report which highlights changes in travel spending habits among different generations.

The Southern Cross report shows that 45 percent of Australians between the ages of 18 and 44 would rather travel than buy a home.

On the other hand, those 45 and older have been shelving trips in favour of keeping their cash to support their families; of these 48 percent were from New South Wales and 32 percent from Queensland.

Staying safe

Zoom Travel Insurance also noted a recent increase in policy uptake among young travellers.

Sullivan said: “Over the past year we’ve noticed an increase in Gen Z customers, along with a rise in claims from young travellers. From lost luggage to medical emergencies, Gen Z is recognising the value of being protected when things go wrong. With the rising cost of travel, even minor mishaps can significantly impact their budgets.”

She added that while younger travellers have traditionally been less likely to purchase travel insurance, this trend appears to be shifting.

As she puts it: “Travel insurance is no longer just a nice-to-have; it’s a must-have. The upfront cost of insurance is minimal compared to the thousands of dollars you could end up spending on an unforeseen incident. Young travellers have traditionally been the least likely to purchase travel insurance, but our findings suggest this trend may be shifting.”