Tour operators ignore insurance and lose revenue
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Of the 22.5 million domestic and international tourists that consulted travel agents last year, 95% were not offered travel insurance. The data was published by market consultancy Research and Markets, which said few tourism enterprises in Ho Chi Min City (HCMC), recognise the important role of travel insurance.
These findings highlight the failure of a Vietnamese tourism law that requires travel agencies to buy insurance for local customers. This oversight translates into significant volumes of lost revenue. Meanwhile, foreign companies mop up demand for insurance packages, while foreign tourists consciously opt for foreign tour operators that offer insurance in addition to rips. One local tour operator told a Vietnamese newspaper that insurance was overlooked because it raised costs in a price conscious market. Yet the average cost of insurance for a local tour is roughly US$1.5 for a foreigner, and even less for a local.
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