Unlocking opportunities in travel insurance

Holidays are often a highlight of the year, offering an opportunity to relax, explore, and create lasting memories. However, for many, planning the perfect getaway requires thoughtful preparation, and that includes buying travel insurance. Understanding the latest trends in holiday planning and insurance preferences can provide valuable insights for insurers aiming to enhance their offerings and better meet customer needs. 

When do people book their holidays? 

Planning ahead is the norm for most holidaymakers, with 55% booking more than three months in advance. A closer look at our survey results reveals that 28% book their travel and accommodations 3-6 months before departure, while 22% opt for 6-12 months in advance.  

Regional differences in the East Midlands show 35% of respondents book their holidays 6-12 months in advance, compared to the national average of 22%. Employment status also plays a role, with retired individuals significantly more likely to book well ahead (32% choose 3-6 months), whereas students and casual workers exhibit a higher tendency for last-minute bookings. 

How financial factors influence holiday planning 

Post-Christmas blues extend beyond feeling a little sad, with 36% of respondents saying the financial strain after the holidays is too much of a barrier to book anything in the new year. Nevertheless, 34% agree that planning a vacation in January helps them feel motivated for the year ahead.  

Travel insurance: a common practice, but timing varies 

When participants were asked if they had purchased travel insurance within the last 2 years, 56% of respondents answered yes. Interestingly, 60% arrange insurance as soon as they book their holiday, 35% wait until a few weeks before traveling, possibly due to uncertainty about their plans or perceived lack of urgency, and 5% purchase insurance just before departure.  

Regionally, those in Northern Ireland and Yorkshire and the Humber, were the most likely to make early insurance purchases, with over 68% of respondents arranging coverage as soon as they book. In contrast, Wales and the West Midlands show higher rates of delayed insurance purchase at 45%, with more respondents waiting until just before departure. 

Factors driving insurance decisions 

When it comes to purchasing travel insurance, trip cost and non-refundable expenses are the primary concerns, confirmed by 70% of respondents. Additionally, 51% consider destination-specific risks, such as weather and political instability, while 52% responded health concerns or age as key factors, particularly among older travellers (65+).  

Preferred coverage types 

Medical emergencies are the most popular type of coverage, with 88% of respondents prioritising this protection. This is followed by trip cancellations or interruptions at 82% of travellers, and lost or delayed luggage, taken by 71%. Interestingly, coverage for adventure or high-risk activities is less popular overall, at 17%, but sees heightened interest among younger respondents, particularly those aged 25-34.  

Single-trip vs. annual policies 

The preference for single-trip insurance over annual policies is notable, with 55% favouring single-trip coverage compared to 45% opting for annual policies. Younger travellers are more inclined toward single-trip policies at 64%, while older individuals, who may travel more frequently, show a greater preference for annual coverage at 55%. 

Among employment groups, homemakers are the most likely to purchase single-trip policies at 71%, while the self-employed favoured annual polices at 53%. The also data highlights regional variations, with respondents in North East and the East Midlands more likely to opt for annual policies, whereas those in the Wales show a stronger preference for single-trip coverage.  

Buying channels and policy comparison 

Most travellers purchase insurance directly from providers, with 79% favouring this channel. Comparatively, only 8% use travel agencies, and 7% add insurance during the booking of flights or accommodations. When it comes to choosing a policy. 72% of respondents always compare policies and providers, while 24% compare only when time allows.  

What would encourage more insurance purchases? 

When asked, “What would make you more likely to buy travel insurance for your holidays?”, respondents pointed to several key factors. Lower costs or discounts are a significant motivator, answered by 69% of participants. More comprehensive coverage options appeal to 57%, while 43% indicated that a simplified purchasing process would make them more likely to buy insurance.  

Opportunities for insurers 

The findings underscore several key opportunities for insurers. Targeting long-term planners with flexible policies and early bird discounts can attract early bookers. Aligning promotions with peak booking periods, particularly in January when many travellers are motivated to plan their holidays. Offering comprehensive, tailor-made coverage to meet diverse needs can further strengthen customer trust. Lastly, educating travellers on the importance of early insurance purchase ensures they are fully protected from the outset. 

By responding to these insights, insurers can better serve their customers, build loyalty, and ultimately drive growth in the travel insurance market. 

Gain deeper insights with Viewsbank, our specialist consumer survey panel...

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