We may not have a crystal ball to tell us what to expect in the year ahead, but Expedia does have the next best thing: data. Video / NZ Herald
As the cost of living hits Kiwis’ wallets, many plan to budget for their trip using three key tactics, a Southern Cross Travel Insurance report states.
New Zealanders have always been thrifty but are becoming even more so as the cost of food, fuel and everything else rises, according to the January survey.
Almost all people surveyed (95 per cent) said they planned to travel domestically or internationally in the next 12 months.
However, over half (53 per cent) said the rising cost of living could axe their international travel plans. Two in five said the same of their domestic plans.
As a result, most respondents said they will try and cut travel costs this year.
The most popular trade-off is booking cheaper accommodation (38 per cent). This was followed by taking fewer trips (35 per cent) and taking shorter trips (33 per cent).
Southern Cross Travel Insurance CEO Jo McCauley said this indicated how health issues are no longer the key consideration for Kiwis planning to travel in the following year. Instead, people are most concerned about the cost.
“The rising cost of living is impacting New Zealanders in all areas of their lives and travel is no exception. We’re seeing people look for ways to cut costs while still trying to make those trips happen,” McCauley said.
Jo McCauley, chief executive Southern Cross Travel Insurance.
“While our 2022 survey showed a close to 50 per cent drop in the appeal of hostel-type accommodation as people were wary of Covid-19, we’re seeing the increased cost of living appearing to outweigh any health concerns travellers may previously have had.”
Travel insurance still essential, says CEO
One cost McCauley warns future travellers against cutting is insurance, adding how this could leave you out of pocket in the long run.
The study found 81 per cent of travellers intended to buy travel insurance; something she said has rescued “thousands of customers” as travel ramps back up and people are hit with lost luggage, extreme weather-related delays or cancellations.
Even domestic trips, which can seem straightforward, can become costly if things go wrong.
“Many of the best things to do like Great Walks or guided tours are as costly as they might be overseas,” McCauley said.
From July 2022 to February 2023, the average domestic claim with Southern Cross was $921. In one instance, a traveller claimed $9500 for a South Island tour they could not take due to contracting Covid and needing to isolate.
