Key Takeaways
- Travel is expected to get more expensive in 2025, which could explain why more people are planning to take a smaller number of bucket-list trips, according to a survey from trip insurance marketplace Squaremouth.
- Those pricier trips also come with a greater risk of losing money in the event of a missed flight or illness.
- Experts recommend considering travel insurance for expensive trips, or when traveling to remote locations or planning to take part in dangerous activities.
People are eager to travel in 2025, but they’re feeling the pinch of higher prices and looking to make the most out of less, according to a recent survey from travel insurance marketplace Squaremouth.
More than half of survey respondents said they expect to pay more on travel this year than they did in 2024. The average trip is expected to cost more than $7,200, up 24% from 2024, according to Squaremouth data. The company forecasts international trips will average nearly $10,000, an 11% increase from last year.
As a result, people think they’ll travel less this year. Nearly three-quarters of those surveyed said they plan to take a maximum of two trips in 2025; in 2024, half of respondents planned to take more than two trips.
Squaremouth found that people are looking to get more out of less frequent travel. Three in four respondents said they plan to travel to new places this year, and 40% said they want to check off a bucket-list destination.
Trip Insurance Recommended With ‘Remote Locations’ or ‘High Risk Adventure Activities’
Of course, the more one spends on travel, the more one could lose if something goes wrong, like a canceled flight or illness. That’s why experts recommend travelers setting out on pricier trips consider travel insurance.
“Travel insurance is something people should think about when there’s any significant risk or financial commitment involved in their trip,” Squaremouth PR Director Jenna Hummer told Investopedia in an email. “It’s not always necessary for short, low-cost trips, but for more expensive or complex travels, it’s worth considering, especially if you plan on visiting remote locations or engaging in high risk adventure activities.”
Hummer said it’s worth spending time comparing insurance options to find the policy with the best price and the coverage that suits your needs. “If you’re traveling for an adventure, make sure you’re covered for risky activities like hiking, scuba diving, or skiing. If you’re traveling with valuable electronics, see if the policy includes coverage for lost or stolen items.”
She also noted the importance of reviewing the fine print of insurance policies to make sure you know what’s covered. “Some policies may cover medical emergencies but not trip cancellations due to weather, or they may exclude pre-existing conditions unless you purchase additional coverage,” she said. “Always, always check the details.”