A report by travel insurance comparison site Squaremouth showed that US travellers are taking additional steps to prepare rather than cancelling travel altogether. More than 70 per cent of bookings since the CDC announcement are still for international destinations.
“We expected to see an immediate shift to domestic travel and a drop in international bookings, due to the added complication of co-ordinating a Covid test abroad, but that hasn’t been the case,” said Squaremouth CMO, Megan Moncrief.
US travellers are insuring their trips
Travellers are insuring and spending more on cancellation coverage for international trips:
- Travellers are insuring about US$1,000 more per trip
- There has been a 42-per-cent spike in cancel for any reason (CFAR) policy purchases
- Travellers are spending 31-per-cent more on insurance
With a price tag 40-per-cent higher than a standard cancellation policy, the CFAR benefit allows travellers to cancel their trip for a reason not otherwise covered by their policy and receive a partial refund.
Travellers want flexibility with travel bookings
Squaremouth says the reason for the upgrade is clear: with constant changes to travel requirements, including negative Covid tests and quarantine restrictions, travellers want the ability to opt out of their trip, no questions asked.
Generally, US travellers are insuring their international trips 24-per-cent sooner than previously in the pandemic. Throughout the coronavirus pandemic, Squaremouth saw a trend of last-minute bookings overtake planned trips, attributing this to a general uncertainty around travel, changing quarantine requirements, and a newfound remote-work flexibility.
Squaremouth has already shown that Americans have a pent-up desire to travel abroad in the new year; now they can also show that they are preparing with travel insurance for those trips.