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.