As we approach summer 2026, travel trends among Americans are taking a notable turn, according to a recent report by Squaremouth, a premier travel insurance comparison platform. With vibrant international destinations leading the charge, travelers are willing to spend more to enhance their travel experiences despite rising costs.
Dominating Destinations
Recent data highlights that international travel is taking center stage for insured travelers. The top ten destinations for June and July include:
- - United States
- - Italy
- - Canada
- - France
- - Spain
- - Mexico
- - Greece
- - Bahamas
- - United Kingdom
- - Japan
Interestingly, Canada has moved up the ranks to third place, surpassing France, while the Bahamas has made a commendable leap from eleventh to eighth place. This shift suggests that travelers are increasingly favoring nearby international destinations this summer, reflecting a trend towards accessible international travel.
Spending Habits and Trends
Americans are allocating significantly larger budgets for their trips this coming summer compared to last year. Squaremouth indicates that the average trip cost has skyrocketed by 24%, soaring from $7,794 to $9,668. A recent survey conducted by Squaremouth reveals some essential insights:
- - Only 24% of those surveyed report that their increased spending is solely due to price hikes.
- - A large portion of travelers, 53%, are trimming their budgets in other areas, such as dining and retail, to finance their travel dreams. Retail appears to be the sector where most have reduced their expenditures, with 19% cutting back.
Europe continues to be a top traveler’s choice, yet at a steep price. Greece's average trip cost has reached $12,730 in 2026, reflecting a rise from $9,737 the previous year. Norway has also seen a remarkable increase, with average travel expenditures soaring by 34% from $11,179 to $14,950.
Moreover, adventurous travelers aiming for safari experiences in South and East Africa are also feeling the pinch, with average costs hitting $24,221 for South Africa and $23,879 for Tanzania, both significantly up from 2025 figures.
Enhancing Travel Protection
In light of recent global uncertainties, travelers are prioritizing insurance and protection for their journeys. There's a noticeable shift in insurance buying behavior; travelers are now purchasing insurance much earlier to secure their coverage and opt for flexible cancellation options to safeguard their investments.
The average duration between making a trip deposit and purchasing insurance has decreased from 71 days to just 62 this year. Additionally, the uptake of Cancel For Any Reason (CFAR) insurance has more than doubled, from 6.9% last summer to 13.5% this summer. It's telling that this behavioral change is evident across the board for all top 20 summer destinations.
Chrissy Valdez, Senior Director of Operations at Squaremouth, shared insights on this emerging trend, stating, "We’re witnessing a shift in priorities among Americans. Despite rising travel costs, many are adjusting spending in other areas to continue traveling at higher standards rather than cutting back entirely. The growing inclination towards early insurance purchases and flexible coverage options illustrates a proactive approach to securing their travel investments."
To find the best insurance policies suited for summer travels, check out Squaremouth for expert tools and comparisons.
About Squaremouth
For over two decades, Squaremouth has been at the forefront of travel insurance, assisting more than 4.4 million travelers in quoting, comparing, and purchasing insurance online. With a reputation for exceptional customer service and an emphasis on transparency, Squaremouth remains America's largest travel insurance marketplace, featuring a wider selection of providers and plans than any other platform.
For more travel tips and to ensure your journeys are well protected, visit Squaremouth.com.