Adroit Market Research - Industry Insights

Tourism has majorly contributed to international trade last year thus increasing the demand for travel insurance. Most of the millennial travelers aged 24 – 44 years now chose to buy travel insurance before or during their trips. They constitute to almost 60% of the population opting for travel insurance. This study talks about how travelling has gained popularity over the years and how young travelers are making travel insurance an essential. Travel outlook is bright as the economic conditions endure to enhance the increasing business and confidence of customers transforming into growing demand for travel. Travel risks involve medical expenses, trip cancellation an

Tourism has majorly contributed to international trade last year thus increasing the demand for travel insurance. Most of the millennial travelers aged 24 – 44 years now chose to buy travel insurance before or during their trips. They constitute to almost 60% of the population opting for travel insurance. This study talks about how travelling has gained popularity over the years and how young travelers are making travel insurance an essential. Travel outlook is bright as the economic conditions endure to enhance the increasing business and confidence of customers transforming into growing demand for travel. Travel risks involve medical expenses, trip cancellation and lost luggage.

Travel insurance is a short-term coverage plan arranged during the booking of a trip to cover the total duration of the trip. Travel insurance of multiple trips covers the risks for an innumerable number of trips for the precise time frame. Policies of some travel insurance deliver the coverage of high medical expense that is effective for the use in countries like England, Germany and the United States have high medical costs. Other important risks covered in the plans of travel insurance involve hijacking, delays in travel and trip interruption.

Travel insurance is mostly safeguarding the financial investment in a trip. Travelers might be more probable to evade travel on being sick, even if they are aware of their financial investment is secure. Increase in global tourism is the main factor accelerating the global travel insurance market growth. With the fast growth of tourist traffic and increase in deployment of technology through marine ports and airports, enlarged examples of loss of luggage & documents, natural calamities, medical casualties, trip cancellation and trip delay are being notified. To improve these risks, a large number of travelers are preferring the travel insurance. Various countries like France, Belgium and the U.S. carry out the regulations choosing travel insurance for gaining a VISA is fueling the total sales of travel insurance policies.

Many companies are experiencing mergers & acquisitions in the global travel insurance industry. To increase the total company, major players are concentrating on obtaining the local players. In addition, an increase in the number of investors interested in investing the capital in most important market giants are leading to the maximum number of acquisitions in the travel insurance market. Companies are also playing a major role in augmenting the total reach of key players. Key players are mostly concentrating on acquiring partnerships with the local players to expand their portfolios and increase the competitive edge.

Increase in Global Tourism:

Growth in mobility amongst individuals, travel is the most acknowledged part of business, academic and private life in the modern world, revealing individual and businesses new financial risk with every trip. Policies of travel insurance cover in contrast to non-medical and medical contingencies related to travel like loss of passports & tickets, emergency medical condition, interruption & curtailment, delay/ loss of baggage and more. It also covers the financial loss that may experience during international or domestic travel. There are various factors responsible for the growth of travel insurance are:

• Development in travel technology: Various unique ways are now available to travel as a tourist. Most important and most favored modes of travel involve cruise/ships, train, roadways and most prominently airplanes.
• Rise in disposable incomes: Disposable income provides individual the preferred liberty to spend money on themselves. This is mostly because of the increase in salary and price for imported goods like clothing, food and many more. In many families, there are one or two earners, have few kids and generous mindset of enhanced spending.
• Entitlement of holiday: Entitlement of holiday in various nations has improved over the past century. This indicates that people can take more holidays in the year which in turn increases the number of tourists. Various organizations have implemented the rule of working five days a week, flexible/ irregular working hours, part-time working, augmented nationalized holidays and more are the factors surging the entitlement of holiday all over the world.
• Media: Huge coverage of holiday types has enhanced the demand for travel. Many of the newspapers are providing ‘holiday section’, whereas television displays huge choices on offers to people. Changed travel research and increase in social sharing are the key features that represent the way media has changed the tourism industry.

Type of Travel Insurance:

Medical Expense: Quick development with an increase in the standard of living combined with the awareness regarding the advantages of travel insurance, particularly coverage of medical expense during the travel, is fueling the growth of travel insurance. The most important part of travel insurance is a medical expense as it covers the cost of emergency treatments and expenses occurring at the time of travel.

present, continuous modifications and various features of additional services are assisting people to evade falling for unsuitable policies. Even, insurance of the unconventional expenses like a tourist being sick on their trip has influenced travelers to claim the insurance after the submission of mandatory documents is another important factor fascinating consumers for preferring the same travel insurance coverage policies.

Trip Cancellation: Trip cancellation is the best option for travelers having travel insurance. Insurance providers compensate the non-refundable cancellation charges forced by travel suppliers. Advantages of travel delay exist to assist with the short pauses in the plans of travel. It compensates for meals, lost prepaid expenses and accommodation if the trip is postponed by more than six hours.

In the fast moving generation, frequent change in schedules and cancellation of the trip can be claimed to recover around 50% of the lost scheduled trip. If the traveler misses greater than half the total length of the trip because of the unexpected situations like common carrier delay, involving quarantine, strike, hijacking or public conflict natural disaster, lost passport, then the customer can claim a trip cancellation.

Trip Delay: Insurance sector is increasing rapidly, many players with various insurance policies are providing travelers with different kinds of plans covering several aspects. With the multiple coverages like trip cancellation, medical expenses, property damage and trip delay is another factor augmenting the market growth.

Policies related to trip delay varies from airlines to airlines and cover hotel and meal expenses in the situation of flight suspensions. Eleventh-hour cancellation of vacation plans because of the unforeseen strike or extreme weather results in trip delay planned for business meetings or family events. Reimbursement is available after the trip is delayed for more than a number of hours required during the trip.

Travel Insurance by type of travel:

Business Travel: Outlook of travel is bright as economic conditions endure to increase and strengthen the business and confidence of customer converts in the enhanced demand for travel. Demand in pickup should be extensive, found across all regions, but will be basically strong in Asia, where India and China spent the previous year contending for the label of rapidly growing major economy.

As a result, air and hotel prices will see the upward movement, the wide influx of new supply in various regions will assist in increasing the rate, with the only minor to moderate growth all over the globe. Though, optimism is hardened by persistent concerns on security threats, oil prices, China’s economic rebalancing, protectionist policy and political instability in areas across the globe.

Leisure Travel: Travel & tourism sector involves everything relating to vacations and leisure travel. Currently, huge improvements in technology and living standards lead to the strong development of tourism involving the phenomenon like mass tourism. Entertainment venues like shopping malls, casinos, theatres, music venues, theme parks & amusements are beneficiaries and drivers of tourism.

As per the World Tourism Organization (WTO), the total number of arrivals of international tourist has been doubled from the past twenty years.

Conclusion:

As there is the demand of customer for the coverage of travel-related losses because of the medical issues, extreme weather, trip cancellation and unexpected events, carriers offering the products meeting their needs? Many of the people around the world have not missed the headers regarding the terror attacks and Zika virus that are the events affecting the travel. These things have made travelers aware of the importance of making decisions of protecting their investments, particularly during abroad travel.