Every vacation should be carefree and filled with blue skies. But, in real life, travel interruptions happen. Transportation breaks down, weather wreaks havoc, luggage is lost, or in the worse cases, travelers are stricken with illness or injury. For individuals traveling together as a group, the likelihood of experiencing a travel incident is compounded. Travel advisors can offer their clients peace of mind as well as earn additional income by offering group travel insurance.
Group insurance plans work the same way as individual plans, the biggest difference is that the age of a traveler has no bearing on the premium price or coverage. Policies cover travelers going to the same destination at the same time, typically policies require a minimum of 10 travelers in a group. There is a single policy for the group, which helps keep the total cost of the insurance reasonable. Each traveler is covered at the same level and total costs are shared among the participants, which can significantly lower the per-person price.
Tour planners know that planning group trips begins many months before the actual trip takes place. Since not all group members will sign up on the same day, travel advisors have the opportunity to offer travel protection to participants throughout the planning process. Advisors can work with group members who wait to purchase coverage later in the planning process by offering tiered pricing. Tour planners working closely with the group organizer can help get group members on board with purchasing insurance by demonstrating how cost-effective coverage can be. For example, if the cost of the coverage per person is a total of $300 and the length of the trip is 10 days, the added expense is only $30 a day for the traveler to protect their vacation investment. A group leader may also be a strong advocate for encouraging members to participate in the group plan earlier in the planning stages to benefit from the longest period of cancellation coverage.
Travel protection partners such as Travel Insured or AIG Travel Guard are terrific resources to help tour operators navigate offering group travel insurance to their clients. A travel protection partner will help planners find the right policy for the type of group and activities that are included in the trip. Some group plans will allow travelers to purchase medical and damage/lost luggage coverage just days prior to departure. Additionally, partners often provide a variety of marketing support, including co-branded materials that agents and group leaders can use during presentations, or attach to their group travel registration websites.
Offering group insurance to clients is a great way for advisors to demonstrate their expertise in travel planning. By planning for the unexpected, you are not only making your group’s travel dreams come true you are providing assurance for remarkable memories.