The global travel insurance market peaked at $27.05 billion in 2024, and is now expected to grow at a compound annual growth rate of 15.4% from 2025 to 2030, according to a report by Grand View Research.
The data showed growing popularity of travel and tourism, dedicated insurance coverage for unforeseen events like flight delays, loss of luggage and cancellation of trips helped boost the sector.
“The adoption of travel insurance is gaining traction as advances in technology allow bundled travel insurance purchases with online ticket booking,” Grand View Research said in the report. “Younger travelers, especially Millennials and Gen Z, are driving demand for flexible policies that can be modified or extended as their travel plans evolve.”
Meanwhile, the American Automobile Association (AAA) projects a record 119.3 million people in the U.S. will travel 50 miles or more from home between Dec. 21, and Jan. 1. According to AAA, 107 million people are expected to travel by car, a record 7.85 million are expected to travel by air, and 4.47 million people are expected to reach their holiday destinations by bus, train or cruise.
“This year, with Christmas Day falling on a Wednesday, we’re anticipating record-breaking travel numbers the weekend before and the weekend after the holiday,” said Stacey Barber, Vice President of AAA Travel.
The worst travel times by car range between 1 p.m. and 8 p.m. from Dec. 19, through Dec. 23, and then again between 12 p.m. and 7 p.m. from Dec. 26, through Dec. 30. AAA predicts minimal traffic on Christmas Eve, Christmas Day, News Year’s Eve and New Year’s Day.
The slideshow above illustrates notable travel industry trends from 2024 as selected by Squaremouth.
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