How travel insurance can help your bottom line
Tour operators, travel advisors, cruise lines … we see you. You’re working harder than ever to keep up with a constantly changing business landscape: You’re staying on top of new travel restrictions and safety requirements, you’re understanding the evolving needs and demands of your clientele, and you’re probably working with fewer resources than you need.
How can you help your bottom line during this challenging phase of business?
A travel insurance program designed with the needs of your business in mind can not only drive additional revenue, but it can offer value to your travelers, too.
With a travel protection plan in place, many travelers feel more confident and equipped to deal with unexpected circumstances that might disrupt their trip. A standard travel protection plan will include coverage for trip cancellation, trip interruption, travel delay, accident and sickness medical expenses, emergency medical evacuation, and more. Plans also include 24/7 travel assistance services, a non-insurance benefit your travelers can call on any time, from anywhere in the world, to assist with travel disruptions or other hang-ups such as forgotten prescriptions, a lost passport, finding a doctor, and more. Many—but not all—plans offer the cancel-for-any-reason (CFAR) upgrade option for travelers seeking the most flexibility with their plans. And most plans provide coverage for many COVID-related disruptions.
This is the time to sell insurance plans. According to a survey by Squaremouth, sales of travel insurance plans with trip-cancellation coverage increased by 255% this year compared to last year. And sales of travel insurance plans with CFAR coverage increased by 147% between 2020 and 2021. Travelers are ready to book trips, and they’re looking to protect their trips, too. You can be the trusted supplier that offers them insurance with their booking, so you’ll receive credit in the form of commission for any plans sold.
The chart below tells a story about the success you may find with an active travel insurance program. When travelers buy a policy, first and foremost, they and their tour investment are protected. Secondly, the tour operator and travel advisor can alleviate some liability so that they may not be held responsible for losses incurred by the traveler. It’s a win-win for all.
Revenue from travel insurance sales: By the numbers
So, how do you become an “educated and trained” tour operator or travel advisor? Most importantly, work with a travel insurance administrator who will truly partner with you. They should take time to understand your business and your clientele, learn your program objectives, and coach you on how to market your travel insurance program. Ideally, your program administrator will provide all the materials you need to market your program, including a website, flier, script, banner advertisements, and more.
If you’re ready to explore your options, USI Travel Insurance Services is here to help. For more information, contact Sharon L. Broo, CTA, vice president of travel insurance services.
Top photo by Shutterstock