Most travelers plan their trips well in advance. But sometimes luck runs out and they are forced to cancel their bookings or make last-minute changes to their packages. While this causes trouble for the travel agency, customers also get impacted as they don’t receive their money back.
To create balance, trip cancellation insurance was developed by travel industry experts. It safeguards tourists for their pre-paid orders so they are reimbursed for non-refundable expenses of their booking. Having this insurance benefits both the customer and the travel agency. Let us explore further how insurance integration allows travel agencies to make last-minute changes.
What is Trip cancellation insurance?
Trip cancellation insurance is a travel insurance that benefits customers in case they cancel their bookings at the last minute. The insurance gets a refund for the non-refundable services on their prepaid bookings. In case a traveler has made the bookings but failed to board the flight, eventually canceling the trip, seeing all the money spent on the trip going down the gutter will be highly disappointing.
Customers never receive a refund for canceling their trips but a trip cancellation insurance does that if the traveler has a genuine and valid reason. Below are the circumstances considered valid by the insurance company:
- Death in the immediate family
- Natural disaster at the destination
- Terrorist attacks in the destination region
- Paid leave changed or canceled by the customer’s employer
- ID or travel ticket stolen
- Critical illness or injury
Ways in which Trip cancellation insurance can accommodate last-minute changes
Let us come to the important section now. Apart from benefiting travelers, how does trip cancellation insurance integration help travel agencies.
Customer trust and loyalty
Tourists remain very excited about the trip they have been planning for months. But canceling it due to unforeseen circumstances robs them of their joy and money. However, a travel agency that offers trip cancellation insurance gains customer trust. Tourists make frequent bookings with such agencies because they get a guaranteed refund in case of trip cancellation, the only condition being the reason for cancellation should be covered by the insurance company.
Instant support for sudden changes
Sometimes, travelers cancel their booking but request the same package to be rebooked for a later time on the same day or the next day. They also cancel some parts of the package and wish to keep the remaining ones. For example, a tourist who may not be able to make it to the flight scheduled for noon would still want to keep the return ticket. Some trip cancellation insurance companies offer these services as well. They refund customers for the canceled services and allow them to keep the other ones.
Smooth claim process
Implementing a system that makes the claims process easier for customers benefits the agency in the long run. Filing a claim must be an easy and efficient claims management process that will help assure customers that their concerns will be resolved without delays. To simplify this process and to increase the customers’ confidence in the insurance products, travel agencies should stay in constant touch with reliable insurance companies.
They should ensure that all the required information is provided to the insurance company on time. The agency should also assign a relationship manager to each customer who can assist them with the claim and settlement process. This will enhance customer loyalty and improve satisfaction, giving the travel agency an advantage over its competitors.
How is trip cancellation insurance integration done
The integration process is simple and it involves partnering with a renowned and reliable insurance provider:
- Partnering with an insurance company: The first step is to finalize the insurance provider that offers good coverage and matches the travel agency’s requirements.
- API integration: Once the insurance provider is selected, the API will be integrated into the travel agency’s booking management system. Travelers will then get direct access to the trip cancellation insurance details.
- Offering insurance: When making the booking, the customers will get the option of choosing trip cancellation insurance. This option will also display all the details like coverage, insurance fees, and more.
- Policy management section: The booking management system should contain a separate section for handling the policies bought by specific users. This will ensure easy and instant access to insurance information.
Key takeaways
Trip cancellation insurance has become highly popular among travel agents and tourists alike. Many avid travelers now consider trip insurance an integral part of their booking process. Travel agencies can enjoy a wider base of happy customers by allowing them to cancel their trips at the last minute for valid reasons. As mentioned in this blog, trip cancellation insurance integration can be effortlessly done with the help of a professional company like TBOHolidays.
Trip Cancellation Insurance FAQs
Yes, travel agencies that offer trip cancellation insurance are preferred by customers. The insurance secures their money in case something goes wrong with their trip and it needs to be canceled.
As long as the illness is critical and doesn’t allow you to travel, it is covered by insurance. However, the complete list of illnesses varies depending on the insurance provider.
Pratyush Kumar Srivastava is a seasoned expert in B2B travel writing with years of experience in the industry. With a deep understanding of the intricacies of travel technology, supplier relationships, and market trends, Pratyush offers valuable insights to help businesses optimize their travel booking strategies. Passionate about innovation and efficiency, he is dedicated to guiding travel agencies through the complexities of modern distribution channels to achieve growth and success.
