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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.”  

Rising awareness of travel insurance

Another notable trend observed by Zoom Travel Insurance has been the substantial uptake of policies purchased by young travellers in recent times.

“Over the past year we've noticed an increase in Gen Z customers, along with a rise in claims from young travellers,” Sullivan shares. “From lost luggage to medical emergencies, Gen Z is recognising the value of being protected when things go wrong. With the rising cost of travel, even minor mishaps can significantly impact their budgets.”

As the cost of travel increases, so too does the importance of planning for the unexpected adds Sullivan.

“Travel insurance is no longer just a nice-to-have; it’s a must-have,” Sullivan advises. “The upfront cost of insurance is minimal compared to the thousands of dollars you could end up spending on an unforeseen incident. Young travellers have traditionally been the least likely to purchase travel insurance, but our findings suggest this trend may be shifting.”

Key takeaways for Gen Z travellers 

While rising costs and fluctuating currencies present challenges, they don’t have to mean the end of Gen Z’s travel aspirations. Through careful budgeting, planning and comprehensive travel insurance, young Australians can continue to explore the world without breaking the bank.

“At Zoom Travel Insurance, we understand that travel is about more than just the destination—it’s about the memories, the friendships, and the experiences that shape who you are,” says Sullivan. “We’re here to help ensure those experiences are positive, even when the unexpected happens.”