Insurance gets a second look as travel world evolves

by Chris Owen on

Travel insurance was once something that only the most careful of travelers bought – an option that was easy to pass up and rarely used. But talk of airline bankruptcy, problems on a normally safe cruise vacation, and political unrest around the world have travelers taking a second look. Even impossible-to-predict natural disasters affecting travel are pushing consumers to buy. The travel industry has seen its fair share of major changes and developments in recent years, and 2012 shows no signs of slowing down.

“The big, dramatic stories are what get people thinking about travel insurance,” as Carol Mueller, vice president at Travel Guard North America, a major third-party insurer, told Gadling.

The Costa Concordia grounding, the recent robbing of cruise passengers while on a normally safe shore excursion in safety-challenged Mexico, and the disabling fire on Costa Allegra, have left travelers with questions about cruise ship safety and regulations.

Both cruise lines and airlines have tightened cancellation policies, leaving travelers with stiffer penalties when changing itineraries. News of airline consolidations and bankruptcies continue to make headlines across the globe, as the number of seats available to passengers shrinks even more.Travel experts have predicted that the cost of airfare will continue to rise in 2012 due to factors including: oil prices, increased regulation, fees, and decreased competition.

In a recent story in the Seattle Times, Anne Banas, executive editor of SmarterTravel, said, “We’re going to see higher airfares.” Additionally, George Hobica, founder of travel website AirfareWatchdog added, “Fares are probably going to inch up.”

Still, travel to far-away, bucket-list destinations has become increasingly common. Exotic, long haul destinations landed on lists of the “must see” destinations for 2012 compiled by some of the country’s top travel editors and experts.

Travel+Leisure’s Hottest Travel Destinations of 2012 list includes Sri Lanka, St. Vincent, the Grenadines, and Mozambique’s Northern Coast as hot places to visit. Earlier this year, Gadling recommended some highly specific adventures that included traveling to Rwanda for gorilla spotting, a hike and bike tour of Easter Island and a ski trip to the South Pole, among others.

In a world with more places to go and more things that can go wrong, it’s important for travelers to educate themselves on how to cover their investment and safeguard themselves when traveling.

According to Travelguard’s Mueller, “the majority of insured’s file claims are as a result of trip cancellation; interruption or delay; lost or delayed luggage; and medical emergencies. Others take advantage of ‘Cancel for Any Reason’ plans that provide reimbursement in the event that they must call off the trip entirely.”

What travelers don’t realize is that travel insurance plans often do more than just cover the costs of these types of inconveniences. They can serve as a resource for travelers in need, providing assistance services like facilitating cash transfers, making last-minute hotel arrangements, and tracking lost luggage. This type of assistance can be especially helpful in a foreign country, where insurance providers can help locate English-speaking doctors, assist with replacing lost or stolen travel documents, and relay messages to family and friends back home.

Still, buying travel insurance does not protect travelers against all perils. Cruise passengers who buy travel insurance because they are concerned about hurricanes or other weather-related events that might affect their itinerary are often surprised to find out that those are not normally covered reasons for cancellation.

Knowing what is covered and what is not should be a primary focus for travelers considering the valuable protection that a travel insurance policy can provide.

“A good policy can offer you peace of mind for your upcoming vacation,” says consumer expert Chris Elliott, adding “If something goes wrong – if your trip is interrupted or if you have to cancel – you can recover some or all of your costs.”


Flickr photo by F H Mira

Airlines to add more seating options, room and perks

by Chris Owen on

Looking for more legroom on airlines? American Airlines hears the call and has plans to equip its entire mainline fleet with “Main Cabin Extra,” a new seating arrangement which will provide more leg room as well as priority boarding.

“Customers travelling in Main Cabin Extra seats will enjoy four to six inches of extra leg room compared to a standard Main Cabin seat as well as priority boarding privileges,” said Virasb Vahidi, American’s chief commercial officer.

American will begin installation on existing aircraft soon. New Boeing 737-800 aircraft delivered this fall will already be equipped with Main Cabin Extra seating.

Anticipated future aircraft, including Airbus A321s, and A319s, and Boeing 777-300ERs and 787s, will also offer Main Cabin Extra.

“We continue to provide our customers with choices that enable them to customize their travel on American to be the experience they desire and value,” said Vahidi.

Main Cabin Extra seats, located in the front portion of the main cabin, will allow for easier boarding and deplaning. AAdvantage Executive Platinum and Platinum members, along with customers who purchase a full-fare economy class ticket, will receive complimentary access to Main Cabin Extra, subject to availability.

Also, AAdvantage Gold members will receive complimentary access to the new seating product through December 31st, 2013.

Other airlines have extra space for a fee, too. United Airlines Economy Plus features up to five extra inches of legroom on all United flights worldwide as well as many United Express flights. Jet Blue’s Even More program allows first access to overhead bins and early boarding, too. US Airways Choice Seats program gives flyers the right to be first on and first off the plane, in addition to priority seat reservations using mostly window and aisle seats toward the front of Coach.

Flickr photo by bamueller

Road trip plans foiled by rising gas prices

by Chris Owen on

Just as spring and summer road trip plans are being made, gas prices are on the rise. That’s no big news, as we reported the same thing about this time last year. This year, though, gas prices are beginning their annual climb earlier than ever with potentially bad news on the horizon for road trippers making plans right now.

In an interview with the Buffalo News, Patrick DeHaan, a senior petroleum analyst for GasBuddy.com, said, “it’s pretty rough. One word can sum it up: ‘ouch.’ It’s going to be a nasty year for gas prices.”

GasBuddy reports gas prices around the United States, assesses what drives the price of fuel, and offers helpful tips on getting the best fuel economy. This week, Gas Buddy reports a national average of $3.63 per gallon of regular gas, with an average of $3.92 and a high of $4.19 in New York City. In Santa Barbara, California, the situation is worse with an average of $4.40, peaking to $4.79 at the highest station, well before road trip season gets going in full stride. The early rise in gas prices has motorists wondering why.

“This year, the price increases are really based on what’s happening in the world oil market, the crude market,” said Wally Smith, a vice president with AAA, explaining to the Buffalo News, “You get around $4, people really start adjusting driving behaviors.”

So what can we do to prepare for $5.00 per gallon gas?

Moneycrashers, an online source dedicated to developing a community of people who try to make financially sound decisions, suggests that those thinking about buying a car might consider a more fuel-efficient vehicle. At $3.00/gal the added expense of a green car makes owning one more for super eco-aware drivers. At $5.00/gal, the math works.

But saving in other areas to offset the price of fuel, often areas directly affected by the price of fuel itself, can help too. Homes heated by fuel oil will see an increase in costs so finding alternative ways to heat your home is a good idea.

Food will go up in price so we can save money by starting a home garden. Moneycrashers even suggests keeping chickens, starting a beehive, growing your own sprouts, or learning how to forage for nuts.

If that sounds a bit extreme, consider other methods to save on food like buying products in bulk, cooking more at home, and eating out less.

“Food prices really surged at the end of 2011, which isn’t good news to consumers,” said USDA food economist Richard Volpe, in Business Week. “Costs this year will rise as much as 4.5 percent for meat products and baked goods.”

All good reasons why cutting back in areas related and affected by rising fuel prices can leave room in the budget for a decent road trip. Online tools to help manage expenses and predict the price of a road trip are also available.

The website Cost2Drive built a galculator, a fun and easy tool to help travelers budget for road trips, because, as they put it, “the carefree days of jumping in the car with no regard to costs are long gone.”The easy-to-use online tool calculates the price of gas from point A to point B based on current gas prices along the way and even throws in carbon footprint data to consider.

So while we may not be able to do anything about the price of gas, we can control expenses in other areas, leaving room for road trip dreams to blossom.


Flickr photo by photopaige

Five Leap Year travel deals worth a look

by Chris Owen on

Travelers taking advantage of Leap Year travel deals might get some of the best bargains, discounts, and special offers available. Travel agents are out in full force this week, and through the end of the month, with special bargains on some of the most popular destinations, properties, and travel options.

“Whether you’re a bona fide ‘leaping’ born on Feb. 29 or just a bargain hunter looking for an excuse to hit the road, plenty of hotels and resorts are trotting out incentives in honor of next Wednesday’s Leap Year Day,” says USA Today.

  1. Frontier Airlines is offering a Leap Year sale with a limited number of seats, a seven-day advance purchase requirement, and a few blackout dates. Sale fares need to be booked by 11:59 p.m. Feb. 29 for travel now through May 9, 2012. Typical deals: $60 from New York to Milwaukee; $101 from Dallas to Denver; and $99 from Los Angeles to Philadelphia.
  2. Florida Marriott properties have Leap Year perks with their “Stay Here, Fly There” promo at participating JW Marriott, Renaissance Hotels, and Marriott Resorts for two nights over February 28 and 29. The Deal: Get $100 in resort credit along with two, free companion airline ticket vouchers when purchasing two tickets. Taxes are extra. Booking deadline is February 27.
  3. Kimpton Hotels in Virginia has a celebration of Leap Year where travelers can get a jump on spring vacation plans with a 29 percent discount at Kimpton’s three Virginia hotels. The 24-hour “Leap into Spring” sale will take place on Wednesday, February 29, 2012.
  4. Mammoth Mountain ski resort in California has Leap Year babies staying free the night of Feb. 29. The promotion is good at the Mammoth Mountain Inn, Juniper Springs Resort, The Village Lodge, and Tamarack Lodge and Resort, and a valid ID showing proof of the Leap Year birthday is required at check-in.
  5. Carnival Cruise Lines has select rates up to $400 cash back per stateroom, and free upgrades on virtually all sailings from March through December 2012. Book between Monday, February 27 and Thursday, March 1. Carnival is also giving up to $400 cash back per stateroom for 12-day European sailings, and up to $300 cash back per stateroom for their 15-day Transatlantic sailing.




Flickr photo by Foxtongue

Travel search to become personal, focused, nosy

by Chris Owen on

Travel search engines come in a variety of sizes, shapes and brands all aiming to become our first choice when planning a trip. The ways in which we search for travel options today are very different from those we used only a few years ago, and likely, the ones we will use in the future. A new study, tapping the wants of the most connected travelers, says new technologies may create changes for our future travel planning methods.

“Today, we stand at the forefront of a technological evolution in travel that we refer to as Online Travel 3.0 which recognizes the power shift from suppliers to retailers and to end consumers,” says Stephane Durand, Director, Online & Leisure at Amadeus, a major provider of advanced technology solutions for the global travel and tourism industry.

An Amadeus-commissioned, global study identified the online shopping behavior and future motivations of trend-setting travelers, indicating younger, savvy consumers are mastering travel information more. While not representative of the mainstream consumer, they have the most sophisticated shopping needs and represent the early adopters whose current behaviors and preferences are leading indicators of consumer behavior in the future.

What do we want and are likely to see in the future?

Truly private sales:
Look for travel sellers to micro-target promotions to specific consumers offering products that are actually relevant for the buyer.

Cumulative intelligence:
Learning from our online behavior over time, programs will aggregate common patterns while micro-segmentation will help companies analyze behavior and deliver increasingly intelligent results.

Smart systems and virtual private assistants:
Devices will become smart and interconnected, while storing and analyzing consumer behavior information. The program will recognize and process inputs from sites visited and will act as an assistant on the consumer’s behalf.

The study, Empowering Inspiration was based on surveying the behavior of 4,638 travelers in the U.S., U.K., Germany, India, Russia and Brazil.




Flickr photo by Danard Vincente