Tourists increasing travel cover as flights to Europe slump
US holidaymakers travelling to Europe are forking out up to 50% more for "cancel for any reason" cover after numerous terror attacks dissuaded many from travelling at all. US travellers opt for "safety over money," while travel to Brussels and Istanbul has "fallen off a cliff," according to Allianz's Daniel Durazo. Ireland, perceived as safer by Americans, has seen more visitors, while boutique hotels and Airbnb hosts have also benefited from the shift in patterns, while large chain hotels have suffered. The average price of flights to Europe has fallen by 31%.

People look at the Eiffel Tower in Paris illuminated in colours of the Belgian flag in tribute to the victims of terrorist attacks in Brussels on March 22, 2016. Philippe Wojazer | Reuters

Paris. Nice. Brussels. Orlando. Istanbul. Venezuela. Brazil. Baton Rouge. Dallas. The list of places around the world touched by terrorism, violence, rising crime rates and health alerts continues to grow, along with the impact on the travel and tourism industry. In 2015, the sector contributed an estimated $7.2 trillion to the world's economic output and supported more than 284 million jobs worldwide, according the World Travel & Tourism Council. The 73.4 million Americans who traveled abroad in 2015 (up almost 8 percent from the year before) helped boost those numbers. This year, however, U.S. travelers are increasingly taking terror risks into account when making vacation plans. In the last few weeks, the U.S. State Department has issued travel warnings for voyagers to Turkey and Europe. With geopolitical risks on the rise, some travel insurance companies report an uptick in calls from travelers checking on the details of already-purchased policies, and inquiring about pricing and broader options for future coverage. And whether insured or not, almost a quarter of Americans now say they will cancel, delay, relocate, change or reconsider travel plans before taking a vacation, according to the annual Vacation Confidence Index released by Allianz Global Assistance. In Europe, tourism has suffered in the wake of attacks: France's tourist sector alone has lost an estimated 270 million euros ($299 million) since late 2015, according to recent data.

'Fallen off a cliff'

"Americans are putting safety before money and may travel to more expensive destinations to insure their security," said Daniel Durazo, spokesman for Allianz Global Assistance USA.

"Our data shows that American summer travel to Brussels and Istanbul has fallen off a cliff," said Durazo, while "other locations, which Americans deem safer, like Dublin and Shannon in Ireland, have seen tremendous increases in American visitors." The flip side of all this is that some travelers may be able to cash in on the heightened travel concerns, as airlines and various sectors of the industry try and halt the dip in bookings. "We normally expect airfares from the U.S. to Europe and the U.K. to peak in late May and early June and slowly decline into fall," said Patrick Surrey, chief data scientist at Hopper. "This year, prices have dropped precipitously from May into June, and there's been significant 'flash sale' activity as airlines tried to shore up demand in the face of ongoing uncertainty and apprehension about travel to Europe," Surry added. Round-trip airfares from the U.S. to the U.K. are down about 35 percent, to $667, from their highs in May, reports Hopper, with prices to Western Europe down 36 percent, to $627. And compared to the same period last year, flight prices from the U.S. to Europe and the U.K. are down 31 percent overall.



Belgian troops control a road leading to Zaventem airport following Tuesday's airport bombings in Brussels, Belgium, March 24, 2016. Charles Platiau | Reuters