Travel uncertainty? Why flexible cancellation is important
Travel uncertainty? Why flexible cancellation is important | Insurance Business Canada
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Travel uncertainty? Why flexible cancellation is important
Online travel agency justfly.com unveils innovative offering
This article was produced with justfly.com.
Gia Snape of Insurance Business sat down with Ramzi Rahbani, VP of products & platforms of justfly.com to discuss how embedded insurance solutions are creating more flexibility, convenience, and peace of mind for travellers in the post-pandemic era.
In the past few years, there has been a notable shift in the way people approach travel planning. Beyond booking flights, travellers are looking for a comprehensive package that includes accommodations, activities, and insurance.
This holistic view of travel, combined with the inherent uncertainties of modern-day global travel, has created an urgent need for flexible, convenient, and accessible travel insurance options.
“We found that in the last 10 years or so, travellers have been looking at the bigger picture,” said Ramzi Rahbani.
“Not only are they interested in flights, but they’re interested in insurance, car rentals, hotels, excursions, and any other add-ons that you can think of for a flight. We’ve seen a shift in their expectations and behaviours, particularly when it comes to the need for flexibility and security in their travel plans.”
“As travel dynamics have evolved, North American travellers are increasingly seeking reassurance and adaptability with their bookings,” he told Insurance Business.
“The global uncertainties and the complex nature of travel today highlight the importance of having a safety net that offers more than just standard cancellation options.
The shift towards flexible travel planning
Whether it’s the COVID-19 pandemic, political instability, or natural disasters, global events have made travel more unpredictable. As a result, there is a rising demand for travel insurance options that provide flexibility, such as the ability to cancel or change their plans without complicated procedures or rigid policies.
Travellers also want the convenience of booking everything in one place, and justfly.com is stepping up to the challenge. The online travel agency has partnered with Cover Genius to launch a new Cancel for Any Reason (CFAR) offering.
The embedded product, powered via Cover Genius’ award-winning distribution platform XCover, allows customers to cancel their flight for any reason up to 48 hours before departure and receive 100 percent of the booking cost back.
What sets this policy apart is that no documentation or proof is required to make a claim, unlike traditional cancellation policies that often require medical or other urgent justifications. This kind of policy is tailor-made for today’s travel environment, where plans can change rapidly and unexpectedly. Payout is also made to your form of payment of choice.
The traditional model of travel insurance, with its stringent requirements for claims, such as providing documentation or justification for cancellations, no longer meets the needs of many modern travellers. A recent global survey by Cover Genius showed that 60 percent of customers said they would be more likely to purchase airfare when given the option to purchase refund protection.
“CFAR is protection to allow them the flexibility to cancel for any reason if they need to,” said Ramzi.
Cancel for Any Reason (CFAR): Addressing travellers’ evolving needs
In addition to flexibility and convenience, cost plays a crucial role in travel insurance decisions. Travellers often hesitate to purchase fully refundable fares due to their high costs. However, CFAR addresses this pain point by offering a more affordable alternative.
According to an analysis of the top 10 international itineraries from justfly.com, CFAR costs up to 40% less than the next fully refundable fare elsewhere.
This pricing structure allows travellers to secure their plans while avoiding the financial burden of pricier refundable tickets. By offering CFAR at a lower cost, justfly.com makes flexible travel insurance more accessible to a wider range of customers.
“We recognize that travellers now value the ability to change or cancel their plans with ease, without being tied to rigid refund policies or the need to provide extensive documentation,” said Rahbani.
Customers can add the CFAR option to their booking upon checkout or purchase the add-on up to 24 hours after booking through justfly.com’s website.
When they need to make a claim, customers can submit within minutes from anywhere in the world. Refunds are automatically approved and quickly paid in more than 90 currencies and over 40 languages.
Ultimately, CFAR aims to provide a sense of control and peace of mind that traditional travel insurance policies often lack. Additionally, the seamless integration of CFAR into the booking process, along with the ability to submit claims quickly and easily, shows justfly.com’s forward-thinking approach to travel insurance.
“Our analysis indicates that the demand for such flexible solutions is growing, with many travellers prioritizing the peace of mind that comes with knowing they can secure a full refund if their plans change, without breaking the bank,” said Rahbani.
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