ST. PETERSBURG, Fla., Jan. 28, 2021 – Following the CDC announcement requiring all US citizens receive a negative Covid-19 test prior to reentry, initial reports show US travelers are still showing a willingness to travel internationally, taking additional steps to prepare rather than canceling travel altogether.
Travel insurance aggregator, Squaremouth, compared data immediately following the CDC announcement on January 12th, 2020, with data from the two weeks prior, revealing the following takeaways:
Travelers are insuring and spending more on cancellation coverage for international trips
- Travelers are insuring about $1,000 more per trip
- There has been a 42% spike in Cancel For Any Reason policy purchases
- Travelers are spending 31% more on insurance
With a price tag 40% higher than a standard cancellation policy, the Cancel For Any Reason benefit allows travelers to cancel their trip for a reason not otherwise covered by their policy and receive a partial refund.
Squaremouth says the reason for the upgrade is clear: with constant changes to travel requirements, including negative Covid tests and quarantine restrictions, travelers want the ability to opt-out of their trip, no questions asked.
Minimal impact on destinations
- More than 70% of bookings post-announcement are still for international destinations
“We expected to see an immediate shift to domestic travel and a drop in international bookings, due to the added complication of coordinating a Covid test abroad, but that hasn’t been the case,” says Squaremouth CMO, Megan Moncrief.
Travelers are booking farther out
- US travelers are insuring their international trips 24% sooner than previously in the pandemic
Throughout the coronavirus pandemic, Squaremouth saw a trend of last-minute bookings overtake far-planned out trips, attributing this to a general uncertainty around travel, changing quarantine requirements, and a newfound remote work flexibility.
Now, Squaremouth reports travelers with an increasing thirst for travel are simply preparing more.
Squaremouth.com hosts the largest number of travel insurance providers and policies that offer coverage related to the Covid-19 pandemic.
This data in this report is based on travel insurance policies purchased through Squaremouth.com, comparing sales trends in the immediate two week period following the CDC’s announcement of a negative Covid test requirement for reentry to the two week period prior to the announcement.
Squaremouth compared data from thousands of policies in identifying these trends.
Notes to editors
Available Topic Expert: Megan Moncrief, Chief Marketing Officer, is available for comment and interview. firstname.lastname@example.org (727) 378-0938
About Squaremouth: Squaremouth compares travel insurance policies from every major travel insurance provider in the United States. Using Squaremouth's comparison engine and third-party customer reviews, travelers can research and compare travel insurance policies side-by-side. More information can be found at www.squaremouth.com.