From Luxury to Must-Have: Why Travel Insurance May No Longer Be Optional

Travel has never been more thrilling—or more unpredictable. On one hand, today’s travelers are indulging in once-in-a-lifetime luxury experiences and embarking on new adventures that were once only dreams. This makes your job more exciting and creative than ever. On the other hand, the travel ecosystem is challenged by limited supplier capacity, more extreme weather events, and periodic system disruptions causing chaos for travelers.

In this uncertain world of travel, your role as a travel advisor is changing fast. Clients aren’t just looking to you for unforgettable experiences, they’re looking to you for expert guidance and support to help protect their travel plans – especially when it comes to their luxury trips.

The expectation is no longer just to plan but also to protect. In a landscape where disruption is routine, helping to ensure your clients are well-insured against these events is the new standard of customer care.

For many, the pandemic and its aftermath may have transformed travel insurance from a luxury into a necessity. This shift presents travel advisors with an opportunity to leverage reliable protection into a key driver of customer value and satisfaction. But with insurance offers at every turn—from credit cards to flight and tour bookings—understanding which option is best for your customers can be a challenge.  

In some cases, third-party insurers may provide more personalized benefits and broader coverage, in addition to attentive support, making it a better fit with your client’s specific needs and trip details. There are three major advantages that third-party travel protection may offer over mass-market plans: 

1. Higher coverage limits: Many credit cards—even premium ones— may often cap trip cancellation coverage at $10,000 per person per trip. “This could be a challenge for higher-end clientele and luxury travel experiences whose trip value exceeds that limit. For example, the average invoice for a luxury cruise line could be around $19,000 leaving your customer on the hook for at least $9,000 if they need to cancel.

2. End-to-end protection: Insurance centered around specific tour suppliers or activities could possibly leave gaps in coverage for airfare or experiences you plan for clients outside of those tours. Here’s a common scenario: A customer is going on a river cruise in Europe. Are they going to Europe just for the river cruise? Probably not. They’re likely arriving a couple of days earlier for a land portion that may not be covered by the cruise line’s insurance. What happens if they encounter an unexpected event during that time? Your client may suddenly realize that they’re not covered by the insurance through the cruise line.

3. Broader post-departure benefits: Third-party insurance is designed to cover a broad range of incidents—from delays and missed connections to unforeseen expenses. For example, many third-party protection plans may offer 100% coverage or more for trip interruption because last-minute changes can often cost significantly more than pre-planned expenses.

Making Travel Protection a Key Element of Travel Planning 

While some consumers may be aware of the issues they could encounter once they hit the road, many may still be reluctant to purchase travel insurance. Misconceptions about supplier and credit card travel protection, along with the belief that travel insurance is prohibitively expensive, may contribute to this reluctance.

 Many people may assume the cost of travel insurance will be 10-15% of their total trip cost when, in reality, it’s much less than they think.

Addressing these myths is crucial for travel advisors, not just to complete the sale for the client but to fulfill their duty of care. With many issues plaguing the travel industry today proving to be stickier than anticipated, reliable travel protection is set to become a major differentiator and a crucial element of customer experiences.

Reliable travel protection is a win-win for both sides: Advisors get to boost customer satisfaction and their compensation, while travelers can gain peace of mind and reliable travel protection. 

Here are some tips to follow when discussing how travel advisors could better integrate conversations around travel insurance into the planning experience:

1. Highlight the Return on Investment (ROI): When you consider the potential issues that can arise and the out-of-pocket costs compared to the relatively low cost of trip insurance, the value becomes clear—especially with more expensive or international trips. 
   
   
2. Make it available every time: Including trip protection in your quotes every time helps normalize its importance from the beginning.
   
   
3. Get real about the potential risks: Address common travel issues such as flight delays and cancellations, missed connections, and lost baggage. Sharing testimonials about other customers who faced unexpected events is one of the easiest ways you can make these risks more tangible—especially for younger travelers who may be newer to luxury travel experiences. 
   
   
4. Point out possible coverage gaps: Explain that credit card travel protection or other basic coverage they may already have could have limitations and highlight how third-party travel insurance may offer broader protection. 
   
   
5. Personalize the message: Tailor the conversation to your clients’ travel plans. If they are going on an adventure trip, discuss coverage for accidents and medical emergencies. If they are planning a long-term or international trip, highlight the importance of medical expense and evacuation coverage. 

Going the Extra Mile to Secure Peace of Mind 

It’s an exciting and new landscape for travel advisors. At the same time, the world is becoming increasingly unpredictable. Today, a sense of security is invaluable for both your clients and you. Beyond expert travel advice, your customers now count on you for peace of mind for whenever the unexpected happens. By proactively integrating reliable and tailored travel protection into your services, you not only help safeguard your clients’ investments but also reinforce your role as a trusted advisor.

For over 30 years, Travel Insured International (TII) has helped advisors secure reliable travel protection for their clients. As part of Crum & Forster (C&F) Accident & Health (A&H) division, a market-leading property & casualty, accident & health, and specialty insurance carrier, TII is committed to delivering excellence in coverage and service.

At TII, partnerships, relationships, and extensive knowledge are the cornerstone of our company. We believe that travel can inspire curiosity and encourage connection, and we strive to deliver customer-centric coverage options that can help protect any traveler, every trip. From here to anywhere, our aim is to deliver superior service and excellence in coverage. That means a commitment not only to customers, but also the partners who serve them, from travel agencies, business-to-business partners, advisors, sales teams, host agencies, tour operators, and more. We also support our advisor partners with advanced technology to streamline account management, offer quick access to information, and simplify claim filing on behalf of clients. Additionally, we are dedicated to collaboration by providing marketing tools, training guides, handbooks, and custom plans to meet the unique needs of our partners. To learn more, contact us at sales@travelinsured.com or visit travelinsured.com.

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