Summer Travel Costs Soar, Driving Demand for Budget-Friendly Getaways

This summer is shaping up to be one of the most expensive travel seasons on record, with the average trip cost reaching $10,346—a 38% increase from 2024. As prices climb, many travelers are adjusting their plans by seeking more affordable destinations or cutting back on expenses.

According to Squaremouth, a leading travel insurance comparison platform, rising costs are pushing travelers toward budget-friendly locations. Based on insured trip data, Bermuda, Vietnam, and Mexico rank among the top 10 most affordable destinations, with average trip expenses staying below $4,500.

Beyond affordability, travelers are prioritizing flexibility. Concerns over aviation safety and disruptions, including the March fire at Heathrow Airport, have led to a surge in demand for Cancel For Any Reason (CFAR) coverage. In 2025, the number of travelers opting for CFAR has more than doubled, jumping from 5.07% to 11.57%.

With costs rising and uncertainty lingering, budget-conscious planning and comprehensive travel insurance are becoming key strategies for a stress-free summer getaway.