According to the company, the trend is particularly visible in long-haul travel where higher trip costs increase the perceived financial risk associated with cancellations, disruptions or unexpected changes.
Protect Group identified five main factors contributing to the rise of booking anxiety among international travellers.
Economic pressure and rising living costs continue to influence consumer behaviour, with inflation and increasing travel prices encouraging travellers to prioritise lower fares over flexibility. As a result, many consumers are selecting cheaper non-refundable bookings despite the higher associated financial risk.
The company also pointed to geopolitical instability, including wars, international tensions, border restrictions and regulatory changes, as factors increasing concerns over potential travel disruptions and cancellations.
Climate change and extreme weather events, including heatwaves, floods and wildfires, were also identified as influencing destination perceptions and booking decisions.
Health and wellbeing concerns remain significant following the pandemic, particularly regarding medical emergencies, healthcare access and associated costs while travelling.
In addition, overtourism and social media fatigue were cited as contributing factors, with travellers increasingly concerned about overcrowding, queues and the perceived loss of destination authenticity.
Stephen Joyce, Global Strategy Lead Travel & Tours at Protect Group, said: “Consumers are increasingly prioritising price and flexibility over traditional factors such as quality or brand loyalty. However, limited budgets often prevent them from accessing flexible fares, leading many travellers to opt for cheaper non-refundable options despite the higher financial risk.
Travelling involves paying for an intangible experience today that will take place months later and, in most cases, is not protected against unforeseen events. This creates a strong sense of vulnerability among travellers.”
The company stated that demand for protection and refund products has increased in recent months, reflecting changing traveller expectations and growing concerns about financial exposure.
According to Protect Group, the trend is expected to continue as travel becomes increasingly complex, regulatory frameworks evolve and entry requirements become stricter in a volatile global environment.
Refund Protect, the company’s flagship ancillary product, is positioned as a tool designed to reduce booking friction and improve consumer confidence. Integrated into the checkout flow of online travel agencies, airlines, hotels and ticketing platforms, the product allows travellers to convert non-refundable bookings into refundable ones in cases of unforeseen circumstances.
The company stated that Refund Protect offers a full refund of the booking value without restrictive time limitations or complex claim procedures, supporting travel brands in improving conversion rates and customer confidence.
Tags: Stephen Joyce, Protect Group