Research: Are travellers willing to pay more for booking protection?

More than eight in 10 UK consumers would choose a travel booking offering flexibility or refund protection over the cheapest non-refundable option, according to research from Protect Group.

The company’s 2026 Global Booking Anxiety Report, produced in partnership with Web in Travel and Phocuswright, found that 84% of UK respondents favoured some form of financial reassurance when presented with otherwise identical booking options.

Almost half (47%) said they would pay more for a booking with flexibility built into the price, while 37% preferred a cheaper booking with refund protection added separately. Just 16% selected the lowest-priced option without free cancellation or refund protection.

The findings indicate that travellers are weighing the potential financial consequences of disrupted plans alongside the initial cost of a trip – an increasingly important consideration for travel sellers, insurers, and ancillary providers developing products around cancellation risk.

The ability to recover the full cost of a booking was particularly important. Some 36% of respondents ranked knowing they could receive a full refund if unable to travel as the factor that gave them the greatest booking confidence.

Separately, 39% identified receiving 100% of their money back as the most attractive element of refund protection, compared with 14% who prioritised protection covering a broad range of personal circumstances.

Stephen Joyce, Global Strategy Lead for Travel, Tours, and OTAs at Protect Group, said: “Lowest price may win the customer’s attention, but flexibility and financial reassurance are increasingly important factors in how they make travel purchasing decisions.”

The research also pointed to the importance of presenting cancellation and refund terms clearly during the booking process. Protect Group said uncertainty over what happens when plans change can contribute to consumers abandoning or reconsidering purchases, particularly at checkout.

For the wider travel protection market, the findings underline the growing role of cancellation flexibility and ancillary protection alongside conventional travel insurance.

While refund protection is distinct from an insurance policy, greater availability of such products could influence how consumers assess cancellation cover, exclusions, and the overall protection attached to a trip.

The UK findings were based on a survey of 306 respondents and form part of Protect Group’s wider research into booking behaviour across travel, accommodation, events, and experiences.

In other news, The Business Research Company said the global market for cancel for any reason (CFAR) travel insurance was forecast to reach US$4.58 billion by 2030, as travellers increasingly seek greater flexibility amid unpredictable disruption.