Tag Archives: UK

Solo Travel As a Business and Lifestyle Phenomenon

“The man who goes alone can start today; but he who travels with another must wait till that other is ready.” – Henry David Thoreau

If the statistics are any indicator, many travelers agree with Thoreau. In increasing numbers, individuals are traveling alone rather than just waiting for others to join them.

Solo travelers in the recent past have totaled 21 million in just the US and UK combined. According to a New York Times article in Nov. 2012, Internet searches for “solo travel packages” were up 60% over the prior year. The US Department of Commerce’s Office of Travel & Tourism Industries (“OTTI”) reported that a staggering 42% of U.S. citizens/residents that went abroad in 2011 traveled alone. Of those individual travelers, 38% traveled for leisure or to visit friends & relatives (“VFR”) and 66% for business. Similarly, inbound solo travelers from abroad totaled 36.2%. Of those, 23.6% were on leisure trips and and 62.2% for work. This business and lifestyle phenomenon has been growing exponentially.

Who are solo travelers?

Solo travelers are a much broader group than just the single population. They may be:

• Two-career couples on business travel or “DINK’S” (Dual Income No Kids).

• Those with relatives or friends abroad.

• Family members pursuing separate sports/hobbies overseas.

Abercrombie & Kent’s Jill Fawcett has described their solo travelers as: “often… married or have partners, but the spouses don’t share the same interest… They want to travel with like-minded people and the small group gives them some interaction. Then they go back to the privacy of their own room… 25% of people who opt for our Extreme Adventure series are (also) solo travelers,” she said. “People feel a little more secure in a group if the destination is intimidating or there’s a language barrier.” Solo Travel Is Growing at a Rapid Rate | Phil Hoffman travel blog, 10/25/11.

According to Grand Circle Corp chairman Alan Lewis, “Women are a growing force in the solo travel market… where the solo market has grown from about 20% to 25% of [Grand Circle’s] overall bookings during the past five years.”

Single travelers do still continue to play an active role in solo travel. Their growth is clear in Europe and North America where people are marrying later and may be divorced, widowed or never married. According to a March 19, 2013 article entitled “The Growing Solo Travel Market”, http://tourismintelligence.ca, average single households total as follows:

• 35% of all households in developed countries

• 40% in Finland and Norway (2011)

• 37% in the Netherlands (2011)

• 27% in the US (2010), 29% in the UK (2011) and 28% in Canada (2011).

How do solos travel?

Solo travel may not necessarily mean traveling as a “group of one”. Individuals may choose

1. Escorted group tours

2. Independent tours

3. Travel alone and select their own hotels/tours

What Issues Confront Those Traveling Alone?

There are two main challenges for individual travelers.

• Attractive pricing: Lodging, tours and cruises are priced routinely on double occupancy. Most cruises and tours require a single supplement for those traveling alone. Although this is not necessarily 2X, the price differential can be substantial. This is most pronounced in tour packages, particularly cruises that have “2-for-the-price of 1” early booking promotionals. As a result, those traveling alone may pay 3-4X couples/pairs.

• Top quality access and service: In a busy holiday or tourist season, the unaccompanied traveler may be given less desirable accommodations or tables in restaurants. In fact, even 5 star hotels may be unwilling to take a dinner reservation for one even when the individual traveler is a guest of the hotel. This is particularly true on Saturday nights and holidays. The alternative may be sitting at the bar for dinner notwithstanding that the dining room has vacant tables. On cruises/river cruises or other tours with “open seating”, tables are typically set up for even numbers. The result? These travelers are faced with a “standup” buffet or engaging in sleuthing to find an available seat.

What is The Business Opportunity?

This travel phenomenon is growing exponentially and still represents an underserved niche. The opportunity for the industry is substantial, prioritized as follows:

Leisure travelers: They are the largest percentage of industry revenues. However, a smaller percentage go alone for leisure trips. The beneficiaries: airlines, hotels, tours, car and concierge services.

Business travelers: Although a small portion of revenues, a greater percentage are on business. Moreover, they may have a larger budget than an individual on vacation. The same industry segments would benefit with the exception of tours except as potential additions to an international trip.

VFR: Those visiting friends and relatives may be met at the airport and have access to local transportation. While staying in a private residence, meals may not be taken out as frequently as hotel guests. Accordingly, such travelers will continue to generate new revenue primarily for airlines but are unlikely to augment the existing market for other travel services.

This sector represents a largely untapped market. Given the sheer numbers of affluent professionals and business executives, with the right mix of well-priced, top quality offerings, both sides benefit. The travel industry will increase their existing revenues while those traveling alone will achieve more competitive pricing and access to higher quality. It is a market whose time has come.

Overseas Travel Insurance Plans Costs Less and Offers More

images (25)Everyone craves for vacations to enjoy some quality time with their loved ones and Indians are no exception. The outbound travel sector of India saw a robust growth this year because international travel destinations are highly sought-after among Indians in 2015. Obstacles like inflation, skyrocketing ticket price and depreciation of rupee couldn’t deter the wandering spirit of Indian travelers to travel around the world. Over 60% of Indians remain unmoved by the depreciating rupee and are raring to go to travel. However, the rate of availing travel insurance to safeguard the trip is still dismal among Indian travelers.

Young generations prefer to travel to international destinations once a year at least. According to a survey, 90% of these travelers make use of their own savings for overseas trips and don’t consider travel cover. Quite surprisingly, this is the mindset of young internet savvy generation as ICICI Lombard conducted the survey in the age group of 25-35 among 1049 people across six metro cities in India who had international trips in the previous year.

The survey further reveals that Singapore is the most preferred travel destination among young Indian travelers; the second and third places are held by US and UK.

Let’s take a look at the travel plans available and their prices for those who favor these destinations. Let’s start with Singapore.

Travel insurance plans available for Singapore trips

The following list of top 5 policy quotes in terms of lowest premium are for one 30 years old person looking for a single trip to Singapore. The trip duration is 10 days and the chosen sum insured is US$ 500000.

  1. Universal Sompo – Premium of Rs. 942
  2. HDFC Ergo – Premium of Rs. 1015
  3. Reliance – Premium of Rs. 1129
  4. TATA AIG – Premium of Rs. 1234
  5. Religare – Premium of Rs.1666

The lowest premium is Rs. 942 for a travel insurance plan for a 10 days trip to any Asian country such as Singapore, Thailand. This means one has to pay less than Rs. 100 per day to make his trip safe and secured. Indian travelers must know that travel plans are not only inexpensive but they also provide coverage for loss of baggage, passport, hijack and even emergency treatment.

Travel Insurance plans available for UK trips

The following list of top 5 policy quotes in terms of lowest premium are for 1 person looking for a single trip to UK. The trip duration is 10 days and the chosen sum insured is US$ 500000.

  1. Universal Sompo – Premium of Rs. 942
  2. Bajaj Allianz – Premium of Rs.991
  3. HDFC Ergo – Premium of Rs. 1015
  4. Reliance – Premium of Rs. 1129
  5. Bajaj Allianz ( Travel Elite Platinum) – Premium of Rs. 1139

Universal Sompo provides the lowest premium. The premium of travel insurance plan is also Rs. 942 for a 10 days trip To UK.

Travel insurance policies for US trips

The following list of top 7 policy quotes in terms of lowest premium are for 1 person looking for a single trip to US. The trip duration is 10 days and the chosen sum insured is US$ 500000.

  1. Universal Sompo – Premium of Rs. 1344
  2. HDFC Ergo – Premium of Rs. 1438
  3. Bajaj Allianz – Premium of Rs.1441
  4. IFFCO-TOKIO – Premium of Rs.1456
  5. Bajaj Allianz ( Travel Elite Platinum) – Premium of Rs. 1658
  6. TATA AIG – Premium of Rs. 1694
  7. Reliance – Premium of Rs. 1783

The lowest premium is Rs. 1344 for a travel insurance plan for a 10 days trip to US. Just imagine, you are getting all types of risks covered just by paying less than Rs. 140 for each day of your trip.

Best travel insurance plans in India in terms of baggage and medical coverage

The survey also made clear that 79% people buy travel plan to cover medical emergencies. Safety of baggage is the second most vital reason as 60% people behind purchasing travel insurance policy. So let’s find out best travel insurance plans in terms of medical emergency and luggage safety.

From the above list of travel policies for US, two plans by Reliance and Bajaj Allianz look best in terms of baggage cover.

Reliance Travel care platinum provides US$1500 for the loss of checked baggage for a premium of Rs.1783.

The Travel Elite Premium plan by Bajaj Allianz provides US$ 1000 for a premium of Rs. 1658 for the loss of checked baggage.

To get the best coverage for medical emergencies, the Titanium plan by HDFC ERGO is the best. It primarily covers:

  1. Emergency Medical Expenses
  2. Permanent Disablement/accidental death
  3. Hospital Cash
  4. Loss of Personal Documents
  5. Accidental Death
  6. Loss of Baggage
  7. Financial Emergency Assistance
  8. Personal Liability

What is the cost of international travel policy for a couple?

According to the survey, 52% of travelers prefer to have trips with spouses. So, if these people can avail a travel plan for visiting US or UK or Singapore, how much do they have to pay?

Let’s start with US trip for 10 days for a sum insured of US$ 100000 covering 2 people who are 30 and 28 years old.

Religare offers the best plan which comes at a premium of Rs. 2407.

If you compare travel plans available for couples who wish to visit UK, keeping the same criteria for trip duration, sum insured and age of the traveler, Religare provides the best plan. The premium of the plan is Rs. 1537.

For a trip in countries like Singapore, Thailand within Asia which has been the top travel destination of 2015, a couple has to spend even less for a travel insurance policy. If you compare travel insurance plans that cover Asia, you will get the lowest premium of Rs. 1218 from Explore Asia plan provided by Religare.

The positive part of the survey is the increased awareness among Indian travelers. More than 90% of young generation is aware of the travel insurance which is a significant rise from last year’s 80%. One of the major provider of travel insurance plans in India; ICICI Lombard underwritten a total travel insurance premium of Rs 100 previous year, one can expect the premium to increase by 5-10% in this year. The problem is not with the awareness; it is the lack of understanding about the benefits associated with these travel covers.

27% of the total respondents in the survey choose not to avail a travel insurance plan simply because they were under the wrong conception that such plans cover only accidents, loss of baggage and theft but don’t provide medical coverage. This is far from being the truth as the complete break-up of Titanium plan by HDFC ERGO shows extensive coverage for medical emergencies.

25% surveyed people didn’t buy any travel plan because they thought such plans are costly but it is not so. The price of all plans for person mentioned here are about less than Rs. 100 to less than Rs. 140 for each day of a 10 days trip. Travel insurance policies for couples are even cheaper as they cost in the range of less than Rs. 65 per day per person to less than Rs. 125 per day per person for destinations like US, UK and all countries in Asia including popular destinations like Singapore, Thailand.

Indians love to spend their holidays in international destinations. An international travel insurance plan doesn’t cost much and offers a lot in return. If you are also a travel freak, you should insure the total duration of the trip so that you can enjoy your holiday with complete peace of mind.