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Consumers prepared to pay more for holidays in ‘seismic shift’ in attitude due to pandemic

People are still keen to take overseas holidays and are prepared to pay more in the face of rising costs in a “seismic shift” in attitude due to the pandemic.

New research found 84% of British travellers intend to spend more than they did pre-pandemic on a range of items on their holidays to ensure their wellbeing – from travel insurance to accommodation. 

Tracking responses over a 12-month period, this is a “significant rise” on the proportion of travellers expecting to pay more in 2021 (72%), despite restrictions easing.

The study by AllClear Travel Insurance showed the average total amount of potential planned spend per booking went from £597 in 2021 to £727 today – an increase of £130 (22%).

Almost four in five (79%) respondents planned to spend more on travel insurance than they would have done before the pandemic, with the average amount being £106 more. Comparing the responses from a year ago, this proportion has risen by approximately 12%, according to the company.

More than three-quarters (77%) said they would pay more to be able to stay in a better-quality resort, hotel, or apartment (£302 more than pre-pandemic).

In terms of safer travel, 71% said they planned to spend more to use taxis as opposed to public transport (£110 more), while half would spend more to rent a car (£95 more). 

AllClear chief executive Chris Rolland said: “The fact that so many more people are starting to travel abroad again compared to before the pandemic is great news. 

“What our research finds – time and again is that people in the UK are taking their safety more seriously. 

“The pandemic has created a seismic shift in attitude: people are, despite the recent cost of living rises, still prepared to spend more on ensuring their safety, are conscious of the potential risks, and are taking the right action in advance to minimise risk.

“Covid-19 has impacted the way we travel, including how we plan our holidays. Now more than ever, holiday makers are more aware of the importance of comprehensive cover that they can rely on in unforeseen circumstance. 

“Following two years of changing rules and regulations, it is completely understandable that many travellers want to make sure they are covered. Checking the detail of what your policy does and doesn’t include is absolutely essential, leaving nothing to chance.”

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