Younger Australian Travellers Skipping Out On Travel Insurance

Post by Sharat on March 28, 2018 · Under insurance · Comments Off on Younger Australian Travellers Skipping Out On Travel Insurance 

We’ve all heard terms such as millennial’s, you may have even come across a HENRY, though we still don’t entirely know what that means. The latest research however has revealed a new class of younger Australians that have cash to spend and love to travel that are being referred to as flashpackers. According to the study gone are the days when young Aussies would strap on their backpacks to head overseas on the smell of an oily rag.

The rise of flashpackers

In their place a new group has emerged calling themselves flashpackers, defined as being aged between 18 and 24, with high disposable incomes and no major expenses such as mortgage repayments to worry about. This group of Aussies were found to actually outspend their older traveller compatriots. The results of the study showed that 21% of travellers aged between 18 to 24 intended to spend between $2,000 to $5,000 on their summer holiday. In contrast to just 13% of travellers aged 65 and over and 8% of those aged between 45 and 64 who planned to spend a similar amount.

Deferring life savings

The results of the study suggest that younger Australians seem more prepared to choose travel over accumulating tangible assets in the way their parents did. Instead of regarding travel as simply a leisure activity, the present generation of young adults seem to be choosing to defer life savings plans and opting for more extensive and adventurous holidays as they seek out life experiences instead. They want exposure to different cultures and to learn new languages as well as obtain work experience whilst they travel.

Younger adult travellers more likely to engage in risky behaviour

Whilst the present crop seem to be living it large like never before when they go abroad, travellers aged between 18 to 24 continue to remain the most at risk when it comes to travel related mishaps because they tend not to purchase travel insurance. A study which polled 1,000 Australian travellers found that 15% of travellers in this age group did not purchase travel insurance when they last went overseas. This compares with just 6% of travellers aged over 30. The study also found that travellers under the age of 30 were much more likely to participate in risky activities such as drinking and water sports whilst overseas.

Travel insurance costs peanuts

It is a little concerning that younger Australians are choosing not to purchase travel insurance when they go abroad. If they did a back of the envelop calculation, so-called flashpackers would find they could obtain comprehensive protection including unlimited medical assistance for just a small percentage of the $2,000 they pay for their vacation. For example, a 21-year-old visiting Malaysia, Vietnam and Thailand over the course of three weeks could obtain top of the line travel insurance cover starting from as low as $85. If you are going to shell out $2,000 for your holiday, then it makes sense to stump up the extra dollars to ensure you are protected.

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