Record Travel Costs Increase Popularity of Budget-Friendly Destinations

Last Updated: August 8, 2023July 26, 2024 — 1 min read

ST. PETERSBURG, Fla., August 2, 2023 — With summer well underway, travelers are experiencing what could be the most expensive summer travel season. 

Inflation Leads to Record Traveler Spending

In a recent survey of over 4,000 travel insurance customers, 73% of respondents said that they were more concerned or equally concerned about protecting their trip costs this summer compared to previous years. 

With more than half of surveyed travelers stating they’re having to spend more on travel, Squaremouth reports the highest average trip cost in company history. So far this summer, travelers are spending more than $7,800 on average per trip. 

The cost of international travel, specifically, is up 25% from last year, leading many travelers to seek out destinations that are more affordable. 

Most Affordable Summer Destinations in 2023

As the cost of travel continues to rise, Squaremouth’s data reveals that travelers are actively seeking out more affordable destinations this summer. This year, 7 out of the top 10 most popular destinations have trip costs below the overall season average. 

Below are the most affordable destinations based on insured trip costs.

Not all destinations are budget friendly. In December, Squaremouth revealed the most expensive destinations of 2022, which featured destinations that cost travelers up to $32,000 on average. 

Methodology: Squaremouth analytics compared travel insurance policy sales for trips purchased prior to July 10 with travel dates between June 21 and September 23 of 2022 and 2023..