Traveller demand for refund protection nearly doubles amid disruption
New data suggests consumers are increasingly paying for booking flexibility as disruption and uncertainty influence how they manage travel risk
Traveller uptake of refund protection has nearly doubled this summer, according to Protect Group, as disruption drives demand for greater financial protection when booking trips.
The company’s data showed that conversion for its Refund Protect product among travel partners increased from 14% to 27%, representing a 93% increase.
Demand varied between European markets. In the UK, purchases through travel and transport partners increased by 56%, despite overall adoption of the product across Protect Group’s UK partner portfolio declining slightly. France recorded a 26% increase in conversion.
The figures point to growing demand for protection at the point of sale as travellers look for ways to limit their financial exposure to disrupted or abandoned plans.
Unlike conventional travel insurance, refund protection is typically embedded into the booking process and relates specifically to the cost of the underlying booking. It enables customers to make otherwise non-refundable bookings refundable under specified circumstances and is often integrated into platforms operated by travel companies, including airlines, hotels, and online travel agencies.
Stephen Joyce, Global Strategy Lead – Travel and Tours at Protect Group, said travellers were becoming more deliberate in how they manage disruption risk. “Rather than changing their plans altogether, more people are choosing to protect the parts of their journey where disruption could have the greatest financial impact,” he noted.
The growth comes as the travel sector continues to contend with disruption from extreme weather, operational problems, and wider geopolitical uncertainty, increasing scrutiny of how travellers protect themselves against financial losses.
For the insurance sector, the trend also reflects the continued expansion of protection products embedded directly into the travel booking journey, alongside traditional standalone travel insurance.
Joyce said Protect Group expected demand to continue growing as travel becomes more complex and consumers increasingly expect flexibility when making bookings.
“As uncertainty continues to shape travel decisions, flexibility has become an expectation,” he added.
Back in March, Protect Group announced that it had set a target to safeguard more than US$10 billion in bookings by the end of 2026.