Travel Insurance Means Peace of Mind for Cruise Clients

20.07.2023 - 11:51 / travelweekly.com

Still one of the fastest-growing sectors of tourism, cruise has rebounded post-pandemic with passenger volume expected to reach 31.5 million passengers sailing this year, according to Cruise Lines International Association’s 2023 State of the Cruise Industry Report. The research shows that 73 percent of younger consumers surveyed will consider taking their first cruise, with most turning to travel advisors to book their trips. Phocuswright’s recent travel research also saw travel advisor bookings growing steadily since September.

But unlike 2019 bookings where consumers might add a supplier cancellation waiver to their purchase, today’s cruise traveler is aware that this type of vacation has many moving parts where things can – and do – go wrong after departure, including on-trip incidents like lost or stolen belongings, illness or accidents. And with travel costs soaring in an uncertain economy, travelers are looking for ways to avoid these costs coming out of their pocket.

About a third of travelers plan to spend more on travel this year than in 2022, according to a recent World Travel and Tourism Council report. And since Americans spend about 10 percent of their annual income on vacations, it makes sense to protect that investment. Purchasing third-party travel insurance has become the gold standard, says Angela Hughes, owner of Trips and Ships Luxury Travel in Winter Garden, Florida, noting that 90 percent of her clients opt for plans offering pre-departure and post-departure coverage when they cruise.

“I train my agents to always offer travel insurance because I think everybody needs it; there are so many incidents that can happen – from the death of a loved one, to a heart attack, to dying on the trip – that makes having travel insurance benefits super important,” she says.

“A honeymoon couple in their 20s doesn't need what a 70-year-old needs, and there can be a difference when they buy it themselves versus buying it through the cruise line or tour operator,” she explains. “In some cases, the cruise lines’ waiver may not extend to an expensive pre- and post-package; it just applies to that cruise piece, not their air or the additional 10 days they added on. So, if they’ll be in Tanzania, they may want more evacuation coverage or extra rental car insurance in Europe.”

Alice Stickney, travel consultant for Fairfield, N.J.-based Alice Travel, adds that her team emphasizes clients are buying trip protection, not just cancellation protection.

“While it does have trip cancellation benefits, we have just as many claims post departure as we do pre-departure,” she adds. “I travel a lot with groups, and because they've seen these things happen, they come in to make a deposit and