A 2014 study of businesses executives revealed that 84% have had to cancel a vacation due to work demands at some point in their career. Without the benefits of travel insurance coverage these business executives would’ve been responsible for the entire cancellation cost of their vacation.

Even when travelers have the best intentions to use their vacation days, there are often travel problems that disrupt a traveler’s trip before it begins. The United States Bureau of Transportation Statistics found that in 2016 some airlines cancelled as many as 6.4% of their domestic flights.

For vacation rental property owners and managers, trip cancellation without travel insurance puts both their business and the guest in a tough situation concerning a refund. Property managers can’t really afford to give a full refund to the guest, but at the same time they don’t want to risk losing potential future business and the possibility of receiving a bad review. As a result, property managers often give credits for future vacations to guests, or even worse, a third party booking site will force them to give back the guest’s “non-refundable” reservation payment.

By recommending that guests purchase vacation rental travel insurance, both the property manager and their guest will be compensated for their trip in the event of cancellation for a covered reason, leading to a better resolution between vacation rental managers and their guests.