50% buy insurance for ‘peace of mind’

While global events and financial pressures continue to shape travel decisions, safety and peace of mind are emerging as top priorities alongside a growing appetite for group travel, new destinations and higher holiday budgets, finds the Allianz Partners Travel Index 2025, which surveyed 500 people in the UAE regarding their travel plans and preferences for the year ahead.

TT Bureau

The index finds that the Middle East and North Africa remain the most popular regions for outbound travel from the UAE, attracting 30 per cent of travellers, followed by the UK and Europe at 26 per cent. Meanwhile, younger travellers under 30 years are increasingly drawn to Central America and the Caribbean Islands, indicating emerging destination trends among Gen Z and millennial audiences.

How often and how much they will spend

UAE respondents plan multiple trips, longer stays and budgets over US$3,000 (approx. AED11000). One third of the respondents plan to travel at least twice this year, with high income earners likely to take up to five or more trips annually. The typical holiday lasts between 9-15 days, with most travellers preferring to travel with family or companions, reinforcing the region’s preference for shared experiences.

While budgets are dependent on household income, 34 per cent of travellers plan to spend more than US$3,000 (approx. AED11000) on their next holiday. Most of the respondents, take up to three months to plan and book trips, relying on recommendations from family, friends and social media — particularly YouTube, Facebook and Instagram — for travel inspiration. Furthermore, when it comes to using a travel app, 45 per cent of respondents indicate that storing travel documents is the feature they would utilise the most while travelling.

Concerns about safety: From weather woes to geopolitical fears

Personal safety is the leading concern for UAE travellers, cited by 44 per cent of respondents, followed by fears of extreme weather events, financial constraints and flight disruptions. Higher-income travellers are especially mindful of geopolitical tensions, while younger travellers place importance on protecting travel documents and digital assets while abroad.

Travel insurance purchases are also on the rise, as 26 per cent of respondents say they intend to purchase policies through travel websites. Among those purchasing insurance, 50 per cent state that the main reason for purchasing travel insurance is for their own security/peace of mind.

Vinay Surana, Regional Managing Director – Asia Pacific, Middle East and Africa, Allianz Partners, said, “The Allianz Partners Travel Index 2025 offers actionable insights for our partners at a time
when travellers’ priorities are rapidly evolving. By understanding the needs and concerns of respondents in the UAE, we can deliver more relevant, secure and innovative travel solutions that empower our customers to explore with confidence.”