Planning A Trip For 2024? ‘Stay Informed,’ Warns Generali Assistance
Many Americans are starting to plan spring break or summer trips. But travel presents new dangers, like volcanic eruptions in Iceland to wars in the Middle East.
What’s the outlook for 2024? I asked Chris Carnicelli, CEO of Generali Global Assistance, for a perspective on travel this year — and how people can prepare for it now.
Americans are starting to plan their 2024 vacations. What should they be considering now, when it comes to travel?
I think now more than ever, travelers should consider factors such as safety, entry requirements, and current conditions. I would recommend staying informed about destination-specific guidelines and avoiding areas with potential travel restrictions or safety concerns.
Are you seeing travelers prefer certain destinations in 2024?
According to our 2023 Holiday Barometer, 37% of U.S. travelers opted for a domestic trip over going abroad, with the most U.S. travelers indicating they planned to visit a city (45%).
How has travel changed this year?
I think the primary shift has been a heightened focus on health and safety.
What does that mean for you?
Well, we’ve had to adapt. For example, we introduced coverage options related to COVID-19, including trip cancellation and trip interruption coverage due to the virus if terms are met.
What about safety?
We’ve recognized the importance of quick evacuations in remote adventure destinations. So we’ve put a particular focus on emergency assistance and transportation coverage to provide timely assistance when medically necessary.
How has increased awareness of travel insurance changed trip planning and booking?
I think it’s made travelers more proactive in assessing risks and seeking coverage. People now prioritize travel protection against unforeseen events, influencing decision-making during trip planning and booking. Travelers are more likely to choose providers that offer transparent information and robust coverage options.
How can you tell if your travel insurance company is transparent?
There are a few things to look for when investigating travel insurance: clear documentation on what coverage their plans provide, and whether there is a ‘free look’ period during which the customer can change their plan if it’s not the right one for their trip.
What should people consider when buying travel insurance for their 2024 trips?
You should consider coverage for trip cancellations, medical emergencies, travel delays, and lost or delayed baggage. Additionally, evaluating the plan’s exclusions and understanding the specific needs of the trip — like destination, type of trip, and duration — are essential to ensure protection tailored to your requirements.
OK, since we’re on the topic of travel insurance, let’s talk about the perception that you’re covered for everything if you have travel insurance. That’s not how it works, though. You’re only covered for certain events. But there is “cancel for any reason” insurance, right?
Yes, a “cancel for any reason” — or CFAR — policy gives you the flexibility to cancel your trip for any reason and receive a percentage of their prepaid nonrefundable trip costs.
CFAR coverage provides an extra layer of flexibility, catering to travelers with unpredictable schedules or those seeking additional peace of mind. It allows cancellation for nonstandard reasons not typically covered in standard plans, offering travelers greater control over their plans. However, it’s important to note that CFAR comes with certain considerations.
What are those?
In the industry, CFAR often involves a surcharge, which can be as high as 50%. Additionally, the overall benefit may be reduced compared to standard coverage. You have to carefully review the terms and conditions of CFAR options, considering the surcharge and understanding the potential impact on the overall coverage.
Does it matter where you buy CFAR coverage?
Yes. It’s crucial to purchase it from a licensed insurer. Only purchases from a licensed insurer provide the guarantee of a financially solvent product. This ensures that the coverage and benefits promised under the CFAR option are reliable and will be honored in case of a claim. Exercise your due diligence and make informed decisions when selecting CFAR. And remember to keep mind the specific terms and conditions outlined by a licensed insurer.
It’s 2024. What’s your best advice for buying travel insurance?
First and foremost, when you’re considering travel protection, it’s essential to assess your unique needs. Think about the nature of your adventure — each one comes with its own set of risks, and your travel protection plan coverage has to reflect those specific challenges.
When should you start thinking about travel insurance?
Now. Don’t leave purchasing travel protection as an afterthought. I recommend securing your coverage as soon as you book your trip. This proactive approach ensures you can help protect yourself from certain unforeseen circumstances that may arise before your departure.
One of the worst parts about travel insurance is the fine print. Should you be reading the policy, or is it OK to just browse the large print?
While it may seem like a tedious task, it’s crucial to thoroughly read and understand the terms and conditions of your policy. This will provide clarity on what’s covered and what’s not. Pay special attention to exclusions and limitations.
Is that the biggest mistake travelers make when it comes to insurance?
Actually, I’d say the biggest mistake is underestimating your coverage needs. And that’s particularly true if you’re going to take an adventure trip in 2024.
Your standard travel protection plan might not offer sufficient protection for the unique risks associated with such trips. You have to ensure that your travel protection plan is finely tailored to provide the coverage you need to help safeguard against unforeseen events. For instance, some of our winter destination plans offer coverage targeting winter sports equipment or potential travel delays.
So, will 2024 be a good year to travel?
Inflation was the top concern when traveling among 61% of US travelers surveyed in our 2023 Holiday Barometer, so with inflation now seemingly stabilizing as we head into the new year, we expect 2024 will be good for travel.
Christopher Elliott is the founder of Elliott Advocacy, a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can’t. He’s the author of numerous books on consumer advocacy and writes three nationally syndicated columns. He also publishes the Elliott Report, a news site for consumers, and Elliott Confidential, a critically acclaimed newsletter about customer service. If you have a consumer problem you can’t solve, contact him directly through his advocacy website. You can also follow him on Twitter, Facebook, and LinkedIn, or sign up for his daily newsletter. He is based in Santiago, Chile.
