Survey: Most Travelers Concerned about Financial Loss from Trip Cancellations

25 February 2025 7:58pm

As travel expenses continue to rise, an increasing number of travelers are worried about the financial risks of trip cancellations. A recent InsureMyTrip survey revealed that 52% of travelers are concerned about losing money if they need to cancel their trip. With the average vacation cost reaching $6,891 in 2025, the potential financial impact is significant.

Survey Results: Travelers’ Concerns About Trip Cancellations

Question: Are you concerned about losing money if you need to cancel your trip?

52% – Yes, I always purchase trip cancellation coverage.
43% – Sometimes, depending on how much I spend on my trip.
5% – No, I only buy emergency medical coverage.

Rising Travel Costs

The cost of vacations has steadily increased over the past four years:

2022: $5,144
2023: $5,629
2024: $5,743
2025: $6,891

The Importance of Travel Insurance

As travelers spend more on vacations, the financial risk of cancellations increases. Travel insurance offers a safety net, with a comprehensive policy typically costing just 4% – 10% of the total, prepaid, nonrefundable trip cost.

While no one anticipates canceling a trip, travel insurance ensures travelers don’t lose their entire investment due to unforeseen circumstances.