Jason Veitch, Head of Accident and Health at Santam Travel Insurance (formerly TIC)

South Africans are once again embracing international travel, with Stats SA^[i] reporting a consistent trend towards pre-COVID levels of outbound travel. But travel as we know it is evolving. Insights from Santam Travel Insurance – Southern Africa’s largest travel insurer – show several emerging trends in the sector.

‘Bleisure’ trend continues amid persistent cost pressures

Despite rising inflation, currency fluctuation, and increasing cost pressures, “bleisure” travel is growing. This trend has seen an increasing number of South African business travellers extend their work trips to include leisure time or activities.

Compared to global norms, in South Africa the bulk of outbound travel is business-driven, having rebounded significantly post-pandemic, both globally and in South Africa.

Africa remains the most travelled region for business purposes, reflecting a stable trend in cross-border business activity on the continent.  Further afield, the USA consistently ranks as the top (‘Non-African’) destination for work travel, largely due to the number of South Africans travelling there for farm work opportunities. Germany follows closely, owing to its automotive ties, trade, technology, and global events which make it one of the busiest business travel hubs in Europe for South Africans.

Beach holidays – especially close ones – continue to dominate SA international leisure travel

Mauritius has consistently ranked as South Africans’ most popular leisure travel destination, due to its proximity, visa-free access, and well-established hospitality links with South Africa.

Beyond Mauritius, other “island-type” holiday destinations such as Zanzibar, Thailand, and Bali (Indonesia) consistently feature in the top 20 leisure travel choices. This reflects a strong preference among South Africans for island-style holidays that combine beaches, and all-inclusive resort experiences.

There has been a noticeable rise in interest in cruises among older South African travellers. Cruises offer a convenient and comfortable way to explore multiple countries in a single journey, without the hassle of constant unpacking or airport transfers, making them an attractive alternative to traditional land-based holidays.

Interestingly, travellers aged 60+ are increasingly taking longer leisure trips. This emerging trend is driven by retired parents visiting family members who have relocated abroad. The most common destinations for this group include New Zealand, Australia, the UK, the Netherlands, and Ireland.

Accidental injuries drive bulk of claims – as medical inflation continues to rise

While many travellers primarily associate illness with emergency medical expenses abroad, our data shows that accidental injuries account for a significant share of claims.  These range from relatively common incidents such as falls, back injuries, or snow sport accidents - to more serious and costly cases arising from motor vehicle accidents.

The most common high value claims continue to be cardiac, respiratory, renal injuries and non-sport related injuries.

This trend highlights the importance of comprehensive travel insurance, as the potential severity of injuries can result in substantial medical costs which are not usually covered by complimentary insurance products. These value-adds tend to only provide a limited amount of cover for medical expenses and usually exclude cover for losses for trip disruptions or personal belongings. With the declining rand value, the cost of medical treatment and evacuation for an overseas medical emergency can result in significant financial loss for you.

This broader trend of medical inflation is the most concerning within the travel insurance sector. It presents a growing challenge for insurers, who must manage escalating claim costs while operating within a highly competitive market and meeting rising client expectations.

When purchasing a travel insurance policy, South African travellers should take the following steps to ensure they are well covered for peace-of-mind on their travels:

• Review and understand the medical limits on the policy,
• Check with the travel insurer before incurring a significant expense,
• Understand the terms and conditions of the policy, and
• Appreciate the value of using a travel agent for travel arrangements.