Spending Trends: Cost of Travel Decreases Despite Historical Inflation Rates

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Jul 13, 2022, 15:21 ET

ST. PETERSBURG, Fla., July 13, 2022 /PRNewswire/ -- Despite widespread news of inflation hitting a new 40-year high and rising gas prices, travel insurtech company, Squaremouth.com, reports the average trip cost of American tourists has actually decreased overall, compared to pandemic and pre-pandemic years.

Squaremouth breaks down four surprising traveler spending trends:

Travel Costs Less
Competitive offers and outstanding vouchers, coupled with the strength of the US dollar abroad, may contribute to low travel costs.

Year to date, the average trip cost on Squaremouth.com is roughly $5,300
Throughout the height of the pandemic (2020), Squaremouth reported an average trip cost of $5,800
In 2019, the average trip cost was close to $6,000

International Travel is Cheaper Overall Than Domestic
For the second year in a row, domestic travel costs more than international trips.

Year to date, the average cost of a domestic trip is roughly $500 more than an international trip
However, of the most popular destinations, trips to Greece are the most expensive, averaging a trip cost of roughly $7,600, followed by Italy and France

Younger Travelers are Spending More
Squaremouth has seen an increase in younger travelers insuring their trips compared to prior to the pandemic.

Over 50% of travel insurance consumers are under the age of 50
Younger travelers (<50) are spending about $400 more per trip compared to 2019

Gas Price Increase Made Minimal Impact on Travel Costs
During the first quarter, Squaremouth analysts compared rising gas prices to trip costs.

Despite a 17% increase in gas prices month-over month, Squaremouth only reported a .21% increase in trip costs during the same period

Additional Resources: Live data room

Methodology: Squaremouth.com hosts the largest number of travel insurance providers and policies on the market. Squaremouth Analytics compared thousands of travel insurance policies purchased from Jan 1, 2022 to Jun 14, 2022 to establish traveler spending trends.

About Squaremouth
Squaremouth is a travel insurance comparison company that helps customers instantly search, compare, and buy travel insurance policies online.

Squaremouth.com hosts the most intuitive travel insurance quoting and comparison engine on the market today. Coupled with over 100,000 verified customer reviews and the largest portfolio of products, Squaremouth allows customers to purchase a travel insurance policy from every major provider in the US.

As a company, we prioritize reputation over profits, with a core goal of helping every customer find the coverage they need for the lowest possible price. Founded in 2003, Squaremouth.com - and our multi-award-winning customer service team - has helped more than 2 million travelers find the best travel insurance policy for their trip.

SOURCE Squaremouth