Rising demand for CFAR policies among latest travel insurance trends
Customer data research finds that US travellers are prioritising flexible cancellation benefits
Ahead of the peak travel season, US travel insurance comparison site Yonder Travel Insurance has analysed customer data to uncover travel trends for summer 2024.
Rise in popularity of ‘cancel for any reason’ policies
Its key finding was significant growth in demand for ‘cancel for any reason’ (CFAR) policies, as travellers seek flexible cancellation benefits to mitigate against increased travel risks. Compared with sales for summer 2023, CFAR policy sales were up 92% for Yonder customers, with 27% of those holidaying this summer opting for CFAR coverage in case of their travel plans falling through.
This is despite the added cost involved in the travel insurance upgrade, which allows travellers a 50–75% reimbursement of their insured costs when cancelling a trip for any reason. Based on an average trip cost of $7,565 for summer 2024 US travellers, Yonder found that average premiums per person ranged from $146.58, or 2% of trip cost, for those aged 30 to $587.52, or 7.8% of trip cost, for those aged 60.
“Given the deterioration of global peace, increased travel advisories, and specific cancellation concerns, travellers are looking for greater flexibility in cancelling their trips via CFAR coverage,” said Terry Boynton, Co-Founder and President of Yonder Travel Insurance.
Top five international destinations for summer 2024
In other trends, Yonder Travel Insurance named customers’ top international destinations this summer as:
- Portugal
- Brazil
- Japan
- South Africa
- Italy
The company noted the diversity of the destinations, spanning four continents, in comparison with popular summer 2023 destinations, which were characterised by warm-weather islands and European countries.
Decrease in average trip length
Last year, Yonder travellers were taking trips lasting an average of 12 days, the company said. This year, that average is 10 days, representing an 18% decrease in trip length from 2023.
Previous research by Yonder found that customers were spending around 40% more on travel in 2024 than they did on trips last year.