SUMMER TRAVELERS SPENDING MORE AND INSURING TRIPS EARLIER

Americans are continuing to make travel a priority this summer — even if it means spending more and cutting back elsewhere.

New data from travel insurance comparison site Squaremouth shows that travelers are investing more money in their vacations this year while also taking extra steps to protect those trips from unexpected disruptions.

According to the company's latest numbers, the average trip cost among insured travelers has increased 24 percent year over year, climbing from $7,794 in 2025 to $9,668 this summer.

The higher spending doesn't appear to be driven solely by inflation. Squaremouth found that only 24 percent of Americans say they're spending more because of rising prices. Other reasons for the increased expenditure include decisions to splurge on premium vacations, bucket-list experiences or additional trips.

To make those travel plans a reality, many are trimming other areas of their budgets. More than half (53 percent) of survey respondents said they're cutting back on expenses such as dining out, shopping, home improvement projects or investing in order to fund travel. Shopping and retail purchases were the most common area (19 percent) where travelers reported scaling back.

International Destinations Dominate

International destinations continue to dominate Americans’ summer travel plans, with Italy, France, Spain, Greece, the United Kingdom and Japan all landing among the top 10 most-insured destinations for June and July. The United States remained the top destination overall, Canada came in third and Mexico took sixth spot.

A few shifts in the rankings may point to growing interest in destinations closer to home. Canada moved up from fourth position to the number three spot this year, overtaking France, while the Bahamas climbed from eleventh place to eighth, surpassing both the United Kingdom and Japan.

Summer Spending Increases

Travelers heading overseas are also facing substantially steeper price tags this summer.

Among European destinations, Greece saw average trip costs jump from $9,737 last year to $12,730 in 2026. Norway experienced one of the sharpest increases, with average trip costs rising 34 percent from $11,179 to $14,950.

Adventures further afield are also becoming quite a bit pricier. Travelers booking safari vacations in Africa are spending substantially more than a year ago, with average trips to South Africa rising from $21,908 in 2025 to $24,221 in 2026, and trips to Tanzania averaging $23,879 this year, up from $19,674 last year.

Travelers Prioritize Protection

As travelers spend more on vacations, they're also becoming more proactive about protecting their investments.

Squaremouth found that travelers are purchasing travel insurance earlier in the planning process. The average time between making a trip deposit and purchasing insurance has dropped from 71 days last year to 62 days this year.

Interest in Cancel For Any Reason (CFAR) coverage is also on the rise. CFAR purchases nearly doubled year over year, increasing from 6.9 percent last summer to 13.5 percent in 2026. According to Squaremouth, all of the top 20 summer destinations have seen increases in CFAR purchases, suggesting travelers are seeking greater peace of mind, regardless of where they're headed.

"We're seeing Americans prioritize travel even as costs rise," said Chrissy Valdez, Senior Director of Operations at Squaremouth. "Many are adjusting spending in other areas to afford higher-value trips rather than scaling back on travel altogether. At the same time, earlier insurance purchasing and growing interest in flexible coverage show that travelers are taking a more proactive approach to protecting their investment."

2026-05-31T19:58:14Z