Travel demand holds as costs reshape summer plans: Allianz study

Global travel intent remains strong in 2026, even as rising costs, geopolitical uncertainty and travel disruption concerns influence how people plan their trips, according to new research from Allianz Partners.

The Allianz Partners Global Travel Confidence Index, conducted by Ipsos, surveyed 11,010 adults across 10 markets: China, France, Germany, Great Britain, India, Italy, the Netherlands, Spain, Switzerland and the United States.

The research found that nearly three-quarters of people globally, or 74 per cent, are planning a summer holiday this year.

However, Allianz says travellers are adapting their plans rather than backing away from travel altogether.

Domestic trips lead

Domestic travel is a major part of the picture, with 42 per cent of global travellers planning to vacation within their own country this summer.

Coastal, countryside and mountain destinations account for 31 per cent of domestic travel plans, while 19 per cent of travellers are opting for city breaks.

Travellers in India, China, the United States, Spain and France are the most likely to travel domestically, while those in Switzerland, the Netherlands, Great Britain and Germany are more likely to travel abroad.

In France, 41 per cent of respondents said they do not plan to travel this summer and will stay home.

Costs remain top concern

Rising costs continue to shape travel decisions, with 77 per cent of global travellers saying they are concerned about inflated prices.

Still, travel remains a priority. Allianz says 86 per cent of respondents continue to prioritize an annual vacation, while 82 per cent said they “desperately need a holiday” this year.

Instead of cancelling trips, many travellers are making budget-conscious decisions. 

Sixty-one per cent said they are cutting non-essential spending elsewhere, while 47 per cent said they are scaling back holiday plans in order to travel.

The anticipated global average spend is 1,572 euros per person for a summer holiday.

Switzerland had the highest expected spend at 2,580 euros, followed by the United States at 2,261 euros and China at 2,221 euros.

Experiences drive bookings

Experience-led travel remains a priority, according to the report.

More than half of global travellers, or 54 per cent, said they are likely to attend concerts, festivals or performing arts events during their trips, while 41 per cent plan to attend sporting events.

More than a third, or 36 per cent, are booking cruises, riverboats or expedition-style holidays.

Uncertainty affects destination choices

Global instability is also affecting where travellers choose to go.

More than half of respondents, or 51 per cent, said they are reconsidering destinations because of border controls and travel advisories.

Geopolitical instability was cited as a concern by 72 per cent of respondents, while 66 per cent expressed concern about personal safety, including crime, scams and terrorism.

Operational risks are also top of mind. 

Fifty-nine per cent of travellers said they are worried about delays and cancellations, while 57 per cent are concerned about getting sick while travelling and 56 per cent are worried about medical emergencies abroad.

Lost or delayed luggage was a concern for 52 per cent of respondents, while 50 per cent said they fear losing travel documents.

Travellers under 35 reported higher levels of concern than those over 50 across several categories, including illness, emergencies, climate issues, public health situations, lost luggage, lost travel documents and mobile device repair or replacement.

Insurance part of the planning

Allianz says travel insurance is playing a larger role in how travellers manage uncertainty.

Among those who purchase insurance, the top motivations are peace of mind at 85 per cent, protection against unforeseen disruption at 85 per cent and reimbursement for cancellations at 84 per cent.

Two in five summer travellers, or 42 per cent, purchase insurance at the same time as booking their trip.

Many purchase directly from an insurer, while others use online travel sites, travel agencies or tour operators, banks, airlines or insurance comparison websites.

However, 20 per cent of travellers said they will not purchase travel insurance this summer, while 13 per cent remain unsure.

“What we are seeing is not a decline in travel demand, but a clear evolution in how people travel. This is a more conscious traveller, but also a more resilient one, that is reshaping the entire travel landscape," said Anna Kofoed, chief officer global strategic partnerships, Allianz Partners.

"Even in the face of economic pressure and global uncertainty, as travellers face rising costs, ongoing geopolitical uncertainty, and the very real prospect of disruption, from higher fuel prices to potential air traffic control strikes, holidays remain a non-negotiable lifeline to wellbeing and personal renewal. Travel has become essential to how we recharge, reconnect, and care for ourselves."

She added, "Rather than stepping back, consumers are adapting. They are choosing destinations closer to home, managing their budgets more carefully, and prioritizing meaningful, experience-led trips that justify the investment - because the memories and wellbeing benefits are priceless."

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