Travel Concerns Persist, But Travellers Are Choosing Protection Over Cancellation

A delayed flight or misplaced baggage may no longer be enough to make travellers abandon their holiday plans altogether. According to data by Asego, a global travel assistance and insurance provider, the proportion of trips being cancelled has fallen this year, with the cancellation ratio dropping from 8.3 per cent to 6.8 per cent.

Flight delays, cancellations, baggage problems and geopolitical developments have contributed to a more unpredictable travel environment, particularly for international travellers. However, travellers appear to be taking steps to prepare for such situations rather than abandoning trips altogether.

Younger Travellers Buying More Cover

Travel insurance adoption has risen sharply among younger travellers, according to the company. Insurance uptake among travellers up to 18 years of age increased by 56 per cent compared to last year, while the 19-30 age group recorded a 24 per cent increase. Many younger travellers are choosing plans with higher coverage limits.

Commenting on the decline in cancellations, Dev Karvat, founder and CEO of Asego, stated, "The decline in cancellation ratios reflects a growing sense of confidence among travellers and a greater willingness to prepare for uncertainties rather than postpone travel altogether."

He added that while travel insurance penetration has remained around 22 per cent, travellers are increasingly choosing solutions that provide protection beyond conventional insurance coverage.

Non-Medical Claims Dominate

Medical emergencies remain an important reason for buying travel insurance, but travellers are increasingly seeking protection against a broader range of risks.

According to the company, more than 4,000 medical claims were recorded since the last financial year, while non-medical claims exceeded 16,000.

Karvat said, "Today’s travellers are seeking protection against a wider range of contingencies, including trip delays, baggage disruptions, trip cancellations and other operational challenges, alongside emergency medical assistance."

Concerns Around Delays And Baggage

Trip-related disruptions accounted for a large share of claims reported during the period. The company recorded more than 5,500 claims related to trip cancellation, interruption and curtailment, while trip delay claims exceeded 3,500. Flight delay claims crossed 500.

Baggage-related issues also featured prominently, with more than 3,000 delayed baggage claims and over 200 baggage loss claims reported.

"Travellers today are paying far greater attention to benefits that address real-world travel disruptions and provide support throughout their journey," Karvat said.

He noted that travellers are increasingly evaluating insurance products based on their ability to provide protection against a wide range of travel-related risks rather than focusing solely on medical emergencies.

Demand Grows For Travel Assistance Services

The company said only around 2 per cent of travellers who purchase travel insurance eventually make a claim. According to Karvat, this remains one of the reasons behind the low penetration of travel insurance.

At the same time, travellers are showing interest in services that provide immediate assistance during disruptions. These include doctor-on-call support, emergency evacuation assistance, real-time baggage tracking and airport lounge access during flight delays.

Karvat said, "The majority of claims and assistance requests continue to stem from practical travel challenges encountered during a journey." Travellers are preparing for disruptions through broader protection measures while continuing with their travel plans despite an uncertain travel environment.