241 words…one minute read

What’s happening: With the busy holiday travel period upon us, inflation may be holding people back from traveling. In the last year, the consumer price index for airline tickets has surged by 25 percent. The average price of a flight during the December holiday season in the U.S. is $463.  Additionally, recent bad weather and staffing shortages has led to flight delays and cancellations have become increasingly common around the world.

Why it matters:

• According to Beth Godlin, president of Aon Affinity’s Travel Practice, “Consumers have a heightened awareness and understanding of travel insurance because of the pandemic. Along with that, there’s an increased focus on protecting their financial investment in travel as well as their health safety and security.” For advice on travel insurance in 2023, check out Forbes. To learn more about Aon Affinity, check out episode 11 of the “On Aon” podcast, and for more on managing inflation, listen to episode 25.
• The COVID-19 pandemic had a profound impact on all kinds of businesses, including the airline industry. Check out how travel disruptions bring new risks in the wake of the COVID-19 pandemic here.

Experts at Aon have commented on the wide-ranging impacts of inflation, including losses from natural catastrophes globally, increased food security risks, rising energy costs and more. Learn how Aon helps clients mitigate inflation risk here.