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WHY GEN WON'T STOP TRAVELLING 

In early January, the Aussie dollar hit a five-year low, trading at just US61¢and dipping in value against the pound and the euro. In the weeks since, it has remained under pressure amid ongoing economic uncertainty and shifting market conditions.

As a result, Gen Z’s travel dreams are becoming more elusive. Flights, accommodation, and day-to-day expenses in popular destinations like Europe, the U.S., and even parts of Asia now cost significantly more, forcing young travellers to rethink their plans.

“Due to a weak Aussie dollar, students and backpackers will have to tighten their budgets even more, particularly when visiting the US, the UK and Europe,” says Sullivan. “As a result, many may opt for destinations such as New Zealand, where the Aussie dollar is still strong or budget holiday hotspots throughout Southeast Asia.”

Sullivan notes that apart from careful planning and heavy budgeting, young tourists should take pre-emptive steps to avoid any potential travel losses.

“You should always consider investing in a travel insurance policy as soon as you’ve booked any part of your holiday. While it may be tempting to purchase it just before your trip, comprehensive cover can provide you with a safety net should an emergency force you to cancel your trip.”  

Take note of waiting periods

Sullivan says many young people were unaware that most travel insurance policies included a waiting period of 48 to 72 hours before certain benefits, like trip cancellation or medical coverage, kick in.

"That means if you fall sick or have to cancel just a day after purchasing your policy, you may not be covered. Buying your policy early covers you in the lead-up to your trip – not just once you’re in the air," she explains.

Sullivan says that sudden travel events, such as natural disasters had the potential to majorly disrupt one’s travel plans.

“When extreme weather disrupts your plans, travel insurance can usually help – but only if you’ve purchased it before the event becomes known. While it can be tempting to procrastinate your purchase, or skip it altogether, travel insurance can be a lifeline when you’ve invested significantly into your holidays. Airfares and accommodation costs are often non-refundable, and it’s always wise to buy your policy early to ensure you're covered.”

Longer, less frequent trips: How Gen Z, Millenials travel

Zoom’s insights point to millennial and Gen Z’ers wanting to maximise their travel opportunities, with data pointing to fewer trips of longer durations. According to Zoom, more than half of all travellers aged between 18-29 took trips of 14 days or more, while millennials (29-44) were most inclined to journey for at least 8-14 days. Both demographics were travelling for longer durations than they did pre-pandemic.

“Given the current financial climate it is potentially appealing, and often more economical, to take fewer trips but stay longer, stretching one’s travel dollar further,” says Sullivan.  “We’ve seen a massive surge in young Aussies determined to make up for opportunities missed during the pandemic albeit on a shoestring budget. That often means cutting corners on travel insurance or leaving it to the last minute, which can backfire," says Sullivan.

Zoom urges younger travellers to compare policies carefully and not just opt for the cheapest option.

"Your policy should match your travel plans. Think about activities like skiing, hiring scooters, or even working abroad – you might need additional coverage that isn’t covered under standard cover."

As the European summer season looms, Sullivan says now is the time for travellers to get savvy about their cover.

"If you’ve locked in your flights and accommodation, lock in your travel insurance too. It could save you thousands if something goes wrong before or during your trip."