Does Travel Insurance Cover Overbooked Hotels Abroad?

Have you faced a situation where you booked the hotel accommodation online, but upon arriving at the hotel, you learn that there are no rooms available? The hotel claims to be overbooked, and now you must quickly scramble and look for another place to stay! Does this mean double the expenses?

In times like this, an International Travel Insurance plan that covers in events of Bounced Booking can act as a relief. This is a cover for an unexpected change in plans. 

Bounced Booking might occur when your accommodation (read: hotel) or common carrier (read: flight) is overbooked, resulting in you losing your spot! This can happen primarily during the holiday season or during a particular event or festival, where there are chances for an upsurge in bookings to a particular destination. 

How likely will my booking bounce?

Post-pandemic, the hospitality industry has seen high demand even when it's not peak travel season. The estimated growth of the Indian Travel Market for 2027-28* is USD 125 Billion. Regarding the aviation industry, the rising working group and middle-class demography are expected to boost demand. In FY22, India’s domestic and international passenger traffic saw a 58.5% and 118% YoY increase.*

This means that even when it isn’t peak travel season, you can expect a high traffic of passengers. With this comes higher chances of overbooked accommodations especially in high-demand locations.

Your travel insurance can help assist and relieve your monetary woes if you need to book another flight or hotel and the previous booking amount was not fully refunded.

Digit International Travel Insurance includes cover for Bounced Booking

Digit’s International Travel insurance (Digit On the Move Policy) provides the perfect plan with many benefits, including covering you if your ticket bounces. You can file a claim for Bounced Bookings up to the limits shown in your policy schedule.

Even after all those times you’ve cross-checked your hotel or flight details, unforeseen situations can still arise. Overbooking, for example, is a case beyond your control.

Check out Digit's inclusions and exclusions under this cover

What's Covered

You will be reimbursed up to the sum insured in the unexpected event of Accommodation provider, Common Carrier unable to honour your confirmed bookings (pre-paid or contracted to pay) due to overbooking or any other reason beyond your control for the following expenses: 

1. The difference of cost in an alternate/ upgradation of accommodation of the booking for the same number of nights or same travel destination.
2. Reasonable cost of transportation expenses to the alternative accommodation in the same city. 

What's not Covered

• Any booking for which you are unable to furnish proof of booking/payment and bounced booking.
• Any contractual breach by you including non-adherence to the terms and conditions of the booking service provider.
• If you had any waitlisted booking irrespective of whether such bookings have been promised to be confirmed later.
• Where the alternative arrangements for either the travel or the accommodation is provided by a figure in charge within a reasonable period from the time of departure or commencement of stay covered by the earlier confirmed accommodation booking.
• If you volunteer to take a late flight.
• Any exclusion mentioned in the General Exclusion Section of your travel insurance policy is not covered here as well.

Minimum documents required to claim for Bounced Booking

While filing a claim for Bounced Booking, one must contact the customer service helpline immediately. You must also ensure that you have reached before the required check-in time, in the case of accommodation bounced bookings. With regards to international flights, you can try to arrange for an alternative or next available flight to your destination. 

Some of the documents you will need to claim for this specific cover are: 

• Written confirmation from the common carrier/accommodation provider/ticket provider stating the reason for service cancellation. 

• You need to send across the receipts of compensation provided, like refunds/travel-stay vouchers you received. 

• Bills and payment receipts for transportation and alternative hotel bookings made. 

Once you’re already on your way to your destination, you can file your claim hassle-free and enjoy your vacation to its fullest! 

Disclaimer: This article is for informational purpose, collected across the Internet and with respect to Digit’s On-the-Move Policy document. For detailed coverage, exclusions, and conditions about Bounced Booking cover, go through your travel policy document carefully.