Tourism trends shaping the Future of travel insurance

The pandemic has left a lasting impact on how we work and travel, while concerns about the environmental and social impact of tourism are more prominent than ever.

Remote working has become the norm for many, giving rise to digital nomadism and the concept of "bleisure" (a blend of business and leisure travel). According to the GBTA Business Travel Index™ Outlook, 62% of business travelers were more frequently blending business and personal travel in 2023 versus 2019.

Travelers are also increasingly aware of how their trips affect the planet and local communities. According to ABTA, 42% of UK travelers would like advice from their travel company about how they can make better choices for the environment and local people.

In this context, there is a continued growth in demand for immersive travel, where you can spend time in less tourist destinations and experience the culture and life of the local people.

There is also a rising demand for sustainable travel options that allow people to enjoy natural wonders while minimizing their footprint. This includes eco-friendly accommodations, responsible wildlife tourism, and community-based tourism initiatives that benefit local populations.

Moreover, with the resurgence of travel, many popular destinations are experiencing overtourism fatigue. In response, travelers are seeking out ‘detour destinations’ – lesser-known spots that offer unique experiences without the crowds.

This trend is also driven by the desire for JOMO (Joy Of Missing Out) travels, where people find joy in relaxing off-the-beaten-path locations. As revealed in the Expedia Unpack ’25 report, “62% of travelers say that JOMO Travel reduces stress and anxiety - and nearly half say that JOMO Travel allows them to better reconnect with loved ones.”

On its side, the American Express Global Travel Trends report underscores the continued rise of solo travel. Many solo travelers seek to treat themselves something special, reconnect and take a break from chaotic daily life, try a new hobby, meet new people, etc.

The report also highlights a trend towards spontaneous travel, with people looking for flexibility in their plans and leaving room for last-minute decisions.

While the way we travel is evolving significantly, the goal of many travelers remains to enjoy their free time with peace of mind. Nevertheless, booking a trip comes with its share of stress. As shown by a recent YouGov study, airport and flight-related administration are major stressors for French travelers, with almost one third finding it stressful to get travel insurance. Fortunately, it is possible to offer clients particularly innovative travel insurance options to meet their evolving needs.

A recent survey from Data Market Forecast highlights that the Europe travel insurance market is projected to grow significantly between 2025 and 2033, with a compound annual growth rate of 14.5%. The market size was valued at USD 9,500 million in 2024 and is expected to reach USD 32,135 million by the end of the next height years.

Another travel insurance survey conducted by Business Insider shows that 68% of US travelers surveyed - both those who had and hadn't purchased travel insurance in the past year - said they'd be willing to pay for travel insurance in the future to protect a weeklong, non-business trip. The largest group of US insured travelers (35%) who had already bought insurance in the past explained they primarily feared issues like delayed flights or moved reservations, while about 29% were worried about a health emergency.

Key factors driving this growth include increasing awareness of the benefits of travel insurance, especially as traditional services evolve to meet travelers' needs for flexibility.

Indeed, travelers now seek medical insurance that covers all eventualities, trip cancellation or interruption insurance that allows them to change their itinerary, baggage and personal belongings insurance that also covers their connected devices, travel delay insurance to ease their time at the airport, etc.

This search for flexibility opens opportunities for companies looking to integrate travel insurance into their core bundled offers or loyalty programs. Telco players are for instance looking for travel insurance they could include within their roaming offer.

By providing a dependable, transparent and personalized insurance service that puts the customer first and ensures a rapid assistance response with minimal inconvenience, companies can improve their value proposition, increase their customers’ loyalty and attract new ones.

To co-create innovative customer solutions, our AXA Partners teams conduct detailed analysis of the customers journeys experienced by the direct clients of our corporate partners. We can then support their business strategy in two possible ways: either we ‘pick & choose’ with them benefits from our proven assistance packages, or we co-design new solutions, with the support of our own product development, marketing and innovation teams.

In any case, creating innovative and flexible insurance offers requires a combination of personal and digital touch points.

Our partners can count on our customer-oriented Call Centers equipped to achieve operational excellence in all circumstances worldwide. Our agents are, in most cases, the first point of contact with insured travelers. Their mission is to listen, reassure and organize personalized solutions according to each individual situation.

These agents receive extensive coaching, including empathy training so that they are fully prepared for any situation insured travelers may find themselves in. They are provided with a comprehensive toolbox that both assists and empowers them to reach a unique solution.

When insured travelers fall ill or suffer an injury far from home, unfamiliar medical facilities can cause distress and uncertainty. The first step we take is to put their mind at ease, reassuring them everything is going to be alright. Then, our 200 best in-house doctors and nurses for our International Medical Assistance make access to healthcare as easy as possible and find the right solution for them.

Our network of operational experts can efficiently organize transport services on the ground if needed. We leverage our leading International Medical Network of 40,000 providers to ensure international medical excellence is delivered each and every time. Finally, our agents carry out reassuring follow-ups until the customer is safely home.

The value of travel insurance is not limited to the moment customers need to make a claim – we bring value to the forefront with accessible tools via a convenient digital gateway, MyTrip Companion.

This web portal, which does not require downloading an app, is available in the most commonly used languages. It is a one-stop shop that provides unique access to a full range of added-value digital services at any time during the travel journey (pre-trip, during the trip, and post-trip).

It includes redirect links to access online services with one click: travel tips and FAQs, real-time country information (travel and health requirements), online consultations with a doctor, and finding a healthcare professional. It also offers easy online claim notifications.

MyTrip Companion can be used in parallel with an e-Wallet Travel Card. This digital pass can be imported by the travelers onto their mobile devices to quickly access policy information and the aforementioned services.

Parametric innovation can enable our corporate partners to offer new services to their own customers. For example, parametric flight delay insurance offers the possibility to implement fully automated claims process, requiring little actions from the insured travelers. It enables pre-define parameters to automatically trigger distribution of benefits such as lounge pass, instant cash payment, flight rebooking, hotel booking, flight wifi credit, reward points, gift cards, etc.

Parametric flight delay insurance can be seamlessly integrated and best bundled with partners' existing high-tiers products (e.g.: fare), high-tiers bundle (e.g., priority check-in), and loyalty programs (e.g.: rewards, miles, points). They can offer ancillary revenues to Airlines, Oline Travel Agent or Telco partners.

Weather insurance for vacations provides another example of parametric innovation. Coverage parameters depend on the travel destination and season. Historical weather station data are used to calculate the probability of rain, define the number of insured days, and determine the pricing strategy. In the event of rain, a real-time claim platform triggers coverage.

Other innovative products can also be deployed: green insurance solutions that give customers the choice to purchase a travel insurance product that includes an investment in ‘green’ projects, travel cash cards to bring peace of mind to travelers when they pay in a foreign currency and protect them from higher exchange rate costs from their domestic bank, …

In any case, while new trends in tourism will continue to appear, embedded travel insurance is to be considered as a key ancillary revenue stream and an excellent way to increase customer satisfaction and brand loyalty.