The cruise sector’s big post-pandemic comeback has been nothing short of remarkable. But with that has come a surge in the uptake of cruise travel insurance, which has doubled in the first half of 2023 over the previous six months, recent research reveals.
Purchase data from InsureandGo shows nearly triple-figure growth (96 per cent) in cruise travel insurance policies among Aussie travellers from June-December 2022 to January-July 2023. August 2023 alone saw a whopping 336 per cent yearly increase.
The insurer says that along with an overall boom in cruise travel, the rise has likely been driven by lingering COVID concerns and “proactive traveller precautions around those risks”.
“These forecasts, together with our insurance purchase data, reveal the legacy that COVID has left,” InsureandGo spokesperson and Chief Commercial Officer Jonathan Etkind says.
“Cruises were significantly impacted by the pandemic, particularly because cruise ships carry additional risk for infection outbreak than other transport modes and travel choices.”
According to the Communicable Diseases Network Australia, the population density on board cruise ships puts passengers at a higher risk of infection from transmittable disease.
But in recent times, cruise operators have sought new ways to keep their customers safe and lower the risk of infection outbreaks.
For example, Princess Cruises has added “enhanced air filtration with upgraded HVAC systems which are designed to replace air within public spaces and staterooms every five to six minutes”.
New cruiser demographics are also helping drive the sharp increase in cruise travel insurance.
InsureandGo data shows a 170 per cent rise in travellers aged 26-40 taking out cruise travel insurance when comparing purchases between June-December 2022 and January-July 2023, and a 119 per cent increase in single travellers of all ages doing the same.
“Cruise companies have made a conscious effort to broaden their appeal, which we can see in recent launches such as Virgin Voyages and Disney Cruises,” Etkind says.
“Virgin Voyages is an over-18s only cruise, which counts a tattoo parlor, HIIT workout classes and a casino as part of its entertainment offerings. It’s no surprise that an eclectic mix of people are booking cruises and taking out cruise travel insurance this year.”
The overall findings reflect Cruise Lines International Association (CLIA) data that predicts cruise passenger volumes this year will reach 106 per cent of 2019 levels, or a total of 31.5 million passengers – equal to more than the entire Australian population.
“Considering the cruise ship ban was only lifted in Australia in April 2022, and the COVID-19 protocols for cruises were axed in August this year by the NSW Government, it’s little surprise that the demand for cruise travel has increased,” Etkind says.
The 2023/24 Australian summer cruising season officially got underway last weekend, with the arrival of the first international cruise ship in Sydney.
