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HomeTOURISM38% increase in travel expenditure | Turn to Europe by American travellers

38% increase in travel expenditure | Turn to Europe by American travellers

According to new data from Squaremouth, the country’s leading travel insurance comparison service , travelers heading to Europe this summer are feeling the pinch of rising travel prices, with the average trip expected to cost $10,346 – a 38% increase over 2024. As a result, Europe has become their favourite destination for this summer.

The following European countries stand out for offering the most budget-friendly summer trips, with Poland taking the top spot for most affordable European destination this summer:

Top 10 Affordable European Summer Destinations:

Destination Average Trip Cost
Poland $5,505
Finland $6,577
Austria $7,177
Greenland $7,321
Germany $7,897
Ireland $8,258
Spain $8,699
Great Britain (UK) $8,779
Portugal $8,903
Sweden $9,072

Travel Behavior Shifts Alongside Rising Costs

As the financial pressure of summer travel builds, travelers are becoming more cautious and strategic. Squaremouth’s data shows:

  • Flexibility is a Priority: The number of travelers opting for Cancel For Any Reason (CFAR) coverage more than doubled this year, climbing from 5% in 2024 to 12% this year.
  • Health is a Top Concern: More than half (52%) of summer travelers say their biggest worry is getting sick or injured while away from home. For international trips, travel medical insurance is especially important, since most U.S. health plans don’t cover medical care abroad. In fact, Emergency Medical claims made up 27% of all paid travel insurance claims in 2024 — the highest of any category.
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