Just 1.5 per cent of Australians under 30 have cancelled a Europe trip in 2026 despite global instability, but nearly one in five Gen Z travellers has never read their travel insurance exclusions.
A new PassportCard Australia report found a combined 25 per cent of Gen Z and Millennial travellers are not delaying their Euro summer, saying they are heading on a Europe trip in 2026 “no matter what”.
Rather than shelving plans, younger travellers are adjusting them: amid ongoing disruption to flights through key Gulf hubs, Gen Z are more than four times as likely as Boomers to say they are actively looking for alternative routes to Europe to avoid conflict zones (21% vs 5%).
Gen Z travellers are also nearly twice as likely to say they need to travel now before a Europe trip in 2026 becomes more expensive or difficult (24% vs 13% for Boomers).
The biggest driver is long-awaited bucket-list planning with 41 per cent of Millennials and 33 per cent of Gen Z saying they have been saving for their Europe trip in 2026 for too long to put it off any longer.
PassportCard Australia CEO Peter Klemt said it’s good news for the travel industry as younger travellers adapt to uncertainty to realise their travel dreams for a Europe trip in 2026.
“Younger travellers have spent years saving for these trips and they’re determined to make them happen. What we’re seeing is a generation adapting to uncertainty rather than cancelling travel altogether. They’re changing routes, adjusting plans and prioritising experiences, but they’re still getting on the plane,” he said.
Where’s the insurance knowledge gap?
The determination to travel isn’t matched by policy literacy. Nearly one in five Gen Z travellers (19%) admit they have never properly read the exclusions section of their travel insurance policy, while 26 per cent say they don’t understand what could void their cover overseas, almost three times the rate of Boomers (9%).
More than half of Gen Z (53%) and Millennials (52%) admit they would only properly look into what their cover includes after something went wrong overseas, and around one in 10 are using AI tools such as ChatGPT and Gemini to decode policy fine print.
Pre-trip priorities tell the story: Gen Z travellers are more likely to plan social media content for a trip (30%) than research policy exclusions (24%).
What’s actually catching Aussies out in Europe?
PassportCard claims data shows medical issues (31%) are the top reasons for Aussie claims in Europe, led by flu and cold symptoms, knee injuries, fractures and gastro. Luggage incidents account for 26 per cent and cancellations 15 per cent.
The misconceptions are notable: 13 per cent of Australians believe war, terrorism or civil unrest is automatically covered, while 28 per cent think natural disasters and 19 per cent assume airline insolvency are covered by their policies.
In PassportCard’s declined claims, data, nuclear and war-related exclusions accounted for nine per cent of knock-backs, a recent spike linked to the Middle East conflict, while just over 20 per cent fell below the policy excess.
“Travel insurance isn’t something you want to start researching from a hospital bed, an airport terminal or after your luggage has gone missing. Understanding what’s covered, and just as importantly what isn’t, before you leave Australia can save travellers significant stress, time and money if something goes wrong”, Klemt said.
KARRYON UNPACKS: Young Australians are clearly committed to Euro summer, but there is a gap between trip enthusiasm and insurance literacy. With illness and lost luggage driving most claims, and war-related exclusions catching travellers off guard, the insurance cover conversation is one part of the booking where advisors can assist younger clients set on a Europe trip in 2026.
