Are you looking forward to travel again? Well, turns out you’re not alone.
A March 2021 VRBO survey of 8,000-plus people found that 65% of Americans plan on traveling more in 2021 than they did pre-Covid.
In fact, folks have already ramped up travel this year. Air travel in May 0f 2021 was up 607% over May of 2020.
What does travel look like now in our post-Covid world? In some cases costs for travel are way up. While hotel rates in some big cities remain below pre-pandemic levels, other destinations like Hawaii and the Florida Keys have seen a dramatic increase in rates. When it comes to airfares, the surge in Delta variant cases in the past few weeks has led to decreases in fares. In fact, flights to Europe were off 30% versus 2019 levels in early September.
Cost is one issue, but travel now means fast-changing Covid-19 testing protocols, border restrictions, shifting airline schedules, rental car scarcity, and limited hotel inventory, not to mention the possibility of unexpected cancellations due to illness.
If you’re considering travel, protecting your investment is in order, and looks a little different now than it did pre-pandemic.
We were recently asked by a client for a referral to a travel insurance company that would cover their upcoming trip to Hawaii in the event they were unable to travel. We thought this was a great segue into looking at how travel has changed since Covid, how you can protect yourself financially in the event of unforeseen issues with travel, and travel tips that can save you money and make your travel experience a bit closer to what it was pre-pandemic.
Let’s start with how you can protect yourself financially, since travel cancellations can be costly. This recent Wall Street Journal article shared how working with a travel advisor can save you money. While there is a cost for using a resource like this, the constantly changing travel rules, frequently cancelled flights, uncertainty around if and when you might get sick, and increase in number of rental properties and hotels not allowing for refunds of cancelled stays may very likely outweigh NOT working with someone. As one travel advisor said “Whenever there is complexity, whenever there is uncertainty, whenever there is mystery of rules, there is even more benefit from service.”
These days even the most confident jet-setters are turning to the pros for help. You’ll find that travel advisors charge a few different ways-retainer, commission, or service fees. One site that helps you find a travel advisor is the USTOA, United States Tour Operators Association, which allows you to search for travel advisors by location. ASTA, The American Society of Travel Advisors, has a terrific website to help you find a travel advisor by destination, journey type, and also has some great tips on travel now.
Travel insurance is another way to protect your travel investment. Website squaremouth.com is an awesome resource in this space and one several of my financial planning peers have recommended to their clients, as well. Squaremouth is a site that allows you to compare different travel insurers from a price and coverage perspective. You can choose your coverage type such as Cancel for any Reason, Covid-19 cancellation, and a host of other benefits, and then compare travel policies by cost and coverage. There is also a valuable Help Center that has current information on traveling in this post-Covid/Delta variant world.
How does travel now differ from pre-Covid travel? Below are a few travel tips shared by travel advisors as recently as September, 2021 that reflect our new travel world and are shared in the Wall Street Journal article we mentioned above-
1. Stay in one country. No more touring across regions in multiple countries. You need to minimize border crossings and the testing requirements that come with that.
2. Know where and when you’ll go for your required Covid-19 test to re-enter the U.S. The test must meet certain requirements. Know how you’ll get to the test site, if you have to go somewhere, and how long the results will take. Friends of ours recently traveled from the U.S. to Africa and were required to provide negative Covid test results seven different times over the course of their trip. Make sure you know what is expected of you, and have a plan for it.
3. Pay more attention to on-the-ground issues. Will you need dinner reservations? What are local mask requirements? What’s open and what’s restricted? How will you get around if you are worried about buses and subways? Some cities are requiring proof of vaccination for certain events, and restaurants may also require proof. Best to know this before you travel so you are prepared.
4. Walk into an airport interview office if you need to renew your Global Entry but can’t get an appointment with Customs and Border Protection. Often officers can fit you in because of no-shows and schedule mix-ups. One friend of ours recently walked right in to the San Diego airport to renew her Global Entry, when she was unable to secure an appointment online.
For many of our clients travel plays an important part of their lives. It’s a break from the grind of work, an opportunity for new experiences, and a chance to spend time with people we love. Now more than ever it’s also a time to make sure your travel investment is protected. Contact us for more information on how to protect your future travel plans.
