The over-60s cannot be left behind when the world starts moving again
Will the over-60s be left behind once we start flying again? Nick Trend and Benjamin Parker look at what can be done to reassure the older generation that they will be safe on their travels
Fitter and healthier than at any time in history, those who retire, or at least down-shift in later life, typically have well over 20 years of high-quality, active life ahead of them. And they want to make the most of it, especially when it comes to travel. Generally, they had far fewer opportunities to explore the world in their youth than their own children and grandchildren have had. Until now they have shown a strong desire to spend their twilight years setting that right.
As a result, they have become critical customers for many travel companies - especially the smaller specialist operators. The over-60s are the highest spenders - often booking more expensive hotels and taking longer trips - perhaps flying in business class or premium economy. Many have their tax-free retirement lump sum to spend and they enjoy indulging not only themselves, but often their extended family to a group holiday in a villa perhaps, or a more adventurous itinerary.
And when they aren’t doing that, they are free to travel outside the school holidays, avoiding peak-time crowds and proving hugely valuable to hotels and airlines during the quieter shoulder season. They are loyal customers too - at least if they get good service. Many of Trailfinders’ best clients are those that travelled with the company when they were young and on a tight budget and now they are splashing out on much more expensive trips.
So there is a lot of nervousness in the travel industry that this vital demographic - spooked by Covid-19 and the higher risks they face - will now become reluctant travellers. Indeed that they may not book again until a vaccine is found.
It isn’t only the risk to health which is an issue, there is a crucial question over insurance and the financial implications if a trip has to be cancelled. The cost of travel cover is certain to go up sharply over the next few months. Specialist, PJ Hayman, estimates that standard premiums will rise as much as 20 per cent across the market. But they will be higher for passengers on cruises and the highest rises of all are likely to be on policies for the over 65s, because premiums for older travellers are generally calculated as multiples of the underlying premiums given that they are more likely to claim for medical treatment while travelling. Risks to insurers can be very high, especially if a client is admitted to intensive care in a foreign country. One specialist told me he was aware of a £400,000 claim for medical treatment for Covid-19 in the US, for example.
Another factor which will affect cost will also be whether the Government manages to negotiate a continuation of the reciprocal EHIC scheme which entitles British citizens to free - or low-cost - emergency treatment in EU countries. If it doesn’t, and Covid-19 continues to be a threat, then insurance - especially for older travellers in Europe - may also become harder to find.
About half of all insurers have pulled out of the market altogether at the moment and those that remain have either removed cancellation cover for Covid-19 from new policies or an exclusion inserted for claims relating to it or similar pandemics. Essentially this means that if you book a trip now, you won’t be able to insure against cancellation because of another upsurge in the pandemic. You are also unlikely to find cover which would refund you if you have to cancel a holiday because you contract Covid-19 or if you are forced to self-isolate or go into quarantine at the time you were due to depart.
But this is one area where tour operators and cruise companies have the ability to help - especially in relation to older travellers who may already be more cautious about taking the plunge and travelling again. Justin Wateridge, Managing Director of Steppes Travel - which offers an exotic, long-haul programme of bespoke holidays - is acutely aware of this. A significant number of his clients are over 60 and he says that most have remained positive about travelling in 2021 - postponing trips from this year and planning new ones, some even as early as this autumn. But others have been more cautious and Wateridge recognises the importance of becoming more flexible with cancellation and postponement policies as a way of countering anxiety and also allowing the confirmation and payment of holiday balances much later than he normally would. He says that most of his suppliers are open to being more flexible, recognising both the need to accommodate changes in plans.
He also says that he thinks much can also be done to offer reassurance from a health security point of view. For example, he is ensuring that drivers of private cars wear face masks, and using larger vehicles - which allow greater distancing - for tours and transfers. And he believes that focusing on accommodation in smaller hotels and lodges, and building more time into itineraries so that clients feel they have more time and space during their trip, will also help.
Abercrombie and Kent - the luxury long-haul specialist - also says that the over-60s make up most of its clientele, and that of sister company Cox and Kings. It is currently reviewing ways in which it might be able to help offer greater reassurance to that demographic. The prospects aren't entirely bleak. Clients in their 60s to 80s who were planning big trips for their families this year to celebrate a major anniversary or birthday have simply postponed to 2021. But the company recognises that more will need to be done to encourage as many as possible to follow suit.
Among the companies whose clients have an even more senior age profile are cruise lines and those offering escorted cultural tours. Martin Randall, chairman of the leading such operator, says that about half of his customers are over 70. He thinks the cost of insurance may be an issue, though there are currently too many imponderables to be sure of the impact it could have. He believes that some of his customers will be put off travelling, but that others are more sanguine. They are sophisticated people who, he feels, will come to their own judgments about the risks they face. They are from an era which felt less cosseted by what they see as an undue obsession with health and safety, and Randall believes that their desire to travel will prevail over Covid-19 concerns.
Meanwhile, the cruise industry - the most vulnerable to anxieties over the transmission of the disease - has been focusing its attention on what it calls Project Restart. This is looking at when, where, and how to get cruise ships sailing again. Under evaluation are boarding procedures, sanitation strategies and the end of buffet meals, introducing one-way systems, and so on. Peter Deer, Managing Director of Fred Olsen Cruise Lines said: “Of course, any social distancing measures implemented by the Government will apply to our cruise ships, so we need to consider what that might look like, and how we can effectively implement those… but this goes far wider than just what cruise lines such as ourselves are doing. We need ports at various destinations around the world to work with us on this, and to do the same thing. This is true for the whole travel industry, not just cruise.”
He concedes that insurance will also be an issue. Fred Olsen requires all guests to be covered by cruise-specific travel insurance and only releases tickets when they have been provided with policy details.
“People need to know they will be covered if they were to contract coronavirus abroad whilst on their holidays,” said Deer. “Equally, insurers need to know that we as a cruise line are doing all that we can to create a safe and comfortable space for our guests in a post-Covid-19 world.”
Meanwhile, Mike Hall, of Cruise & Maritime Voyages, doesn’t believe that access to - or affordability of - insurance is likely to be a problem. He pointed to research by Silver Travel Advisor that reported just 10 per cent of those surveyed had experienced a problem in obtaining travel insurance since the coronavirus lockdown began.
This cover will almost certainly include Covid-19 exclusions, however, and this issue is something which Carnival UK, parent company of both Cunard and P&O Cruises, said they are discussing with their insurance partners “as cover may change in the future as the pandemic is brought under control.”
In the end though, confidence will be key. If significant numbers of the over-60s are not to be left behind when the world starts moving again, they need to be sure both that they can get affordable insurance, and that their health will be protected. But, at an individual level and until a permanent solution is found, they will also need to come to terms with a slightly higher level of risk. To decide whether the wonders and excitement of travel outweigh a desire to stay at home and play it safe.
