Inflation is having a significant impact on the summer plans of Finnish individuals this year. According to a recent survey conducted by If, a leading insurance company in Finland, more than 40% of Finns stated that inflation has influenced their upcoming summer vacation plans. The primary effect of inflation is a reduction in travel, with many individuals opting for less frequent trips or seeking more affordable alternatives.
Some have even had to cancel their holiday plans entirely. Despite these challenges, domestic destinations, particularly cabins and city locations, remain popular choices for Finnish travelers.
Impact of Inflation on Summer Plans
Of those who have adjusted their summer plans, 59% stated that they will be traveling less this summer compared to previous years. Approximately one-third of respondents mentioned actively searching for cheaper travel options, while one in five decided to forgo vacations altogether due to increased costs. Families with children feel the effects of inflation more strongly, as over 50% of them reported that rising costs have influenced their summer plans.
Jukka Heinämäki, the Product Manager for Travel Insurance at If, commented, "It is entirely understandable that travel is one area where people are cutting back, as it is not an essential expense."
Rise in Popularity of Domestic Destinations
The If survey revealed that domestic travel plans for this year are similar to those of 2020. However, there has been a notable increase in interest for city destinations within Finland, with 39% of respondents planning to visit them compared to 28% in the previous year. Cabin getaways continue to be the most popular choice for Finnish travelers, with 43% opting for this type of accommodation (compared to 44% in 2020). Nature destinations attract 25% of respondents, while 14% express a desire to visit Lapland.
Heinämäki advises travelers to consider travel insurance even for domestic trips, as If's continuous travel insurance covers trip cancellations and offers additional coverage for medical expenses within Finland.
Top 5 Domestic Vacation Choices
- Cabin getaways
- City destinations
- Nature destinations
Long-lasting Effects of the Pandemic on Travel
The travel habits of Finns underwent significant changes in 2020 due to the COVID-19 pandemic. While travel started to recover to some extent, the impact of the pandemic is still evident in Finnish travel patterns. In the If survey, 40% of respondents mentioned that they continue to travel less abroad than before the pandemic. Air travel has decreased for 35% of Finns, and 30% reported a reduction in cruise vacations.
Heinämäki added, "Only a few percent of Finns claim to have increased their travel after the pandemic. The exception is domestic travel, which has seen an 11% increase."
As inflation affects the purchasing power of Finnish individuals, adjustments to summer vacation plans have become necessary. Many Finns are traveling less or seeking more affordable travel options. Despite these challenges, domestic destinations, including cabins and city locations, continue to attract Finnish travelers. It is advisable for travelers, even on domestic trips, to consider travel insurance coverage to safeguard against unforeseen circumstances. While the COVID-19 pandemic has left a lasting impact on travel patterns, Finnish travelers remain resilient and adaptable in their pursuit of enjoyable and safe vacations.