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What are the advantages and disadvantages of offering insurances?

Advantages

Customers will be financially protected in the event they’re unable to attend the trip. Trip cancellations and interruptions are quite common while travelling, so having extra protection can improve the customer’s sense of security.

By enabling this insurance, it also gives the merchant financial protection. This can reduce the number of chargeback claims and refund requests received as customers will not be claiming refunds from the merchant but from the insurance provider instead.

 

Disadvantages

When opting for insurance, there will be an additional €5 added to bookings under €100. For bookings over €100, cancellation insurance will be 6% of the basket value. This can deter customers if they’re already spending a lot of money on tours and activities. However, the cancellation insurance is optional and will be clearly highlighted at the checkout.

The customer needs to carefully check in the T&Cs of the insurer what is covered with the insurance and in which cases there is no coverage.

At the end of the day, customers will have the choice if they want to pay a little more for added protection and security, enhancing the overall experience of the merchants services.

Updated on February 17, 2021

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