Socio-Demographic Features and Risk Perception as Determinants of Taking out Travel Insurance

Abstract

Despite numerous studies on ways to reduce travel risks, not much attention has been paid to factors that encourage tourists to take out travel insurance. The aim of this study is (1) to investigate whether the tendency of tourists travelling abroad to take out travel insurance differs depending on their socio-demographic features and their risk perception, and (2) to determine which of the examined variables are most useful in predicting the tendency to take out insurance. Based on questionnaire data collected from 421 participants in international trips, eleven independent variables have been analyzed: -the perception of six types of risk, age, gender, education, income, and travel organizer. Taking out travel insurance is a dependent variable. Significant differences have been noted between tourists who do not purchase travel insurance and those who do, with regard to their income, age, travel organizer and their perception of five risks. Logistic regression shows that risks related to organization, health, safety and weather as well as age significantly affect the purchase of insurance. These findings should help insurance companies and travel organizers prepare offers that respond to the needs of tourists and to develop appropriate marketing strategies.

Willingness to pay for travel insurance as a risk reduction behavior: health-related risk perception after the outbreak of COVID-19

“…First, this study considered travel insurance as an effective risk reduction behavior following the outbreak of COVID-19 and our findings are consistent with those of earlier studies (e.g., Sarman et al 2019;Zalech 2020;Lo et al 2011;Sonmez and Graefe 1998b). In our study, the perception of COVID-19 and the subsequent risk perception toward traveling emerged as important determinants of purchasing travel insurance, thereby confirming the role of travel insurance as a risk reduction behavior in tourists' decision-making process.…”

“…Earlier studies have shown mixed effects of demographics on risk perception and insurance purchase. In this study, the respondents' age presented an inverted "U"shaped effect on travel insurance purchase, and this result is consistent with those of Chou and Yao (2011), (Lo et al 2011), andZalech (2020). Moreover, the result showed that middle-aged respondents were more intent on purchasing travel insurance than their younger and older counterparts.…”

“…Karl (2018) also reported remarkable differences in age and education between tourists' typology based on risk and uncertainty, but they did not observe any effect of gender and income. Zalech (2020) found that age and the level of monthly income are significant factors in determining travel insurance purchase; gender and education were not identified as such factors. Chou and Yao (2011) showed differences in the effects of monthly income, education, and age on the likelihood of purchasing travel insurance, but they did not observe any effect of gender.…”

“…Chou and Yao (2011) showed differences in the effects of monthly income, education, and age on the likelihood of purchasing travel insurance, but they did not observe any effect of gender. Meanwhile, Chou and Yao (2011), Lo et al (2011), andZalech (2020) found an inverted U-shaped relationship between age and the intention to purchase travel insurance (i.e., middle-aged groups are more likely than young and old travelers to purchase travel insurance). Considering these mixed results, this study intends to investigate the effects of demographic factors (i.e., age, gender, monthly income, and education) on travelers' intention to purchase travel insurance following the outbreak of COVID-19.…”

Risk perception and visit intention on Olympic destination: Symmetric and asymmetric approaches

“…Indeed, earlier studies (e.g. Karl et al, 2020; Sönmez and Graefe, 1998b; Zalech, 2020) have shown mixed effects on destination choice, risk perceptions, and risk reduction behaviours. In our study, the symmetric approach showed only age and past visit experience having significant effects on visit intention, whereas in the asymmetric approach, gender, age, and income had a certain degree of influence on visit intention.…”