Travelers are bracing for what could be one of the priciest summer travel seasons on record. The average cost of a summer trip in 2025 is expected to reach $10,346, a 38% increase over Summer 2024.

Data suggests this upward trend is unlikely to slow, leading many travelers to reconsider destinations or scale back their plans.

Analyzing traveler spending and survey data from thousands of travel insurance policies purchased for trips this summer, Squaremouth, the nation's top travel insurance comparison service, reveals how rising trip costs are affecting traveler behavior.

Travelers Are Seeking Budget-Friendly Summer Destinations 

Amid rising economic uncertainty, Squaremouth's data reveals that travelers are actively seeking out more affordable destinations this summer.

Below are the most popular affordable summer destinations this year based on insured trip costs. Bermuda tops the list as the most affordable summer destination, with an average trip cost of just under $4,000.

Top 10 Affordable Summer Destinations:

Travelers Want Added Flexibility This Summer

General aviation safety concerns and ongoing travel disruptions—such as the fire at Heathrow Airport in March—are amplifying concerns over potential trip cancellations. As a result, many travelers are opting for more comprehensive coverage.

The number of travelers purchasing Cancel For Any Reason (CFAR) coverage for their summer trips has more than doubled in 2025, increasing from 5.07% to 11.57%.

Travelers Showing Increased Interest in Travel Medical Insurance

A recent survey of 3,500 summer travelers conducted by Squaremouth revealed that 52% of respondents are most concerned about falling ill or getting injured during their trip.

This concern has led to growing interest in travel medical insurance that covers medical emergencies. In 2024, for the first time in over a decade, Emergency Medical became the single highest-paid and most frequently claimed benefit, accounting for 27% of all paid claims in 2024.