Global consumers are more likely to purchase flights, accommodations and event tickets if they are offered ‘Cancel for Any Reason’ (CFAR) protection, according to a recent report released by Momentive.ai and Cover Genius.

The report surveyed 10,300 global consumers from eight countries including the US, UK, Australia, Japan, South Korea, Brazil, Germany and France, to understand their experiences when requesting refunds and their interest in adding CFAR Refund Protection.

The report found that 60% of consumers are highly likely to purchase event tickets, flights and accommodations if they are offered CFAR protection. This compares to a more limited refund protection option or no protection at all. The convenience of CFAR protection leads to higher customer satisfaction, resulting in a 17-point increase in Net Promoter Scores (NPS).

Airfare and accommodation

The global travel sector has seen higher demand and satisfaction with CFAR protection when customers book flexible airfare and accommodation. Specifically, 60% of travellers are highly likely to purchase an airfare when given the option to purchase CFAR protection rather than non-CFAR protection (60% vs 48%). Driven by convenience, they’d also pay 133% more for CFAR protection.

Travellers who have purchased CFAR protection for airfare are also more satisfied with their experience, with an average NPS score 30 points higher than customers who purchased non-CFAR refund protection.

Live event ticketing

The report found that global ticketing consumers are more likely to purchase tickets for live events if they are offered CFAR protection. Specifically, 63% of respondents said they’d be highly likely to buy a live event ticket if offered CFAR protection. This number drops to 54% when they are offered a more limited refund protection option. Respondents said they’d be willing to pay 123% more for CFAR protection than non-CFAR protection, with convenience cited as the primary reason.

The study also found that customers who purchased CFAR protection were considerably more satisfied with their experience, with an NPS score 10 points higher than customers who purchased non-CFAR protection.

Opportunities for tech-savvy companies

Despite consumers' desire for CFAR protection, 5 out of 10 respondents were not offered ‘Refund Protection’ for their most recent live event ticket and/or accommodation and/or airfare. This gap presents an opportunity for digital companies across both industries to drive customer satisfaction and add-on revenue by offering CFAR Refund Protection.

According to Angus McDonald, CEO and co-founder of Cover Genius, modern-day customers are increasingly choosing all-encompassing and hassle-free protection choices such as CFAR. With the help of insurtech, digital businesses can fulfill this demand by integrating their services seamlessly via an API for various platforms, including ticketing, venues, resellers, airlines, OTAs, and hotels.

The report follows four groundbreaking reports that found customers worldwide desire other types of embedded protection from property players, airlines and travel agents, banks, and retailers.