It’s no secret that the Travel Industry performance trends closely with economic factors at a local, national and international level. Poor economic conditions lead to lower consumer confidence, which leads to decreased spending. Personal travel – being a luxury – is one of the more obvious places to trim fat from a budget. It’s during uncertain economic times that taking on a travel insurance policy becomes an increasingly wise investment.
At Rezfest last month CSA spoke about Travel insurance issues specific to the Vacation rental industry, and explained how Rental Insurance can benefit not only guests, but property managers and rental owners as well. We’ve touched on the value of travel insurance from a consumer perspective in an earlier post, but one service of particular importance is the reimbursement of reservation costs in the event of a cancellation. The option to cancel a future trip is immensely valuable, as it allows a traveler to hedge against economic uncertainty.
For homeowners and property managers, Travel insurance provides several benefits. In general, Travelers who purchase insurance policies do so during the reservation process. Because of the added security and upfront cost, these vacationers are substantially less likely to cancel a reservation. For managers specifically, Travel Insurance can represent an additional revenue stream, as many travel insurance companies (CSA included) will offer performance incentives to managers who encourage renters to purchase insurance.
How can property managers incorporate vacation rental insurance into their reservation process? Ultimately this depends on local markets, and how reservations are booked, but CSA offers the following general advice:
- Know how your competitors pricing and booking process, and apply this knowledge to your business
- Always encourage upfront payment for bookings
- Build insurance into the cost of your rentals or into optional components of an invoice
- Use touch points such as a final payment reminder to encourage the purchase of a policy
- For reservations made through the web, add travel insurance options to the booking process.
If you’re interested in learning more about vacation rental insurance, purchasing a policy or signing up as a vacation rental insurance affiliate, vacationrentalinsurance.com has some great resources to get you started.