Tariff Turmoil & Cooling Labor Market Spark Shift In Travel Behavior

Travel Insurance Offers Peace of Mind as Travelers Navigate Uncertainty

ST. PETERSBURG, Fla., May 2, 2025 /PRNewswire/ -- With travelers facing mounting uncertainty driven by new tariffs and workforce instability, demand for flexible travel insurance coverage options is on the rise.

As travelers contend with these overlapping stressors, Squaremouth, the nation's largest travel insurance comparison service, reports a major shift in consumer behavior in 2025.

Flexibility Becomes a Priority Amid Tariff Turmoil
Cancel For Any Reason Searches Climb: Since the April 2nd tariff announcement, Cancel For Any Reason (CFAR) coverage has emerged as the preferred option for travelers seeking maximum flexibility amidst economic uncertainty.

In the four weeks since the announcement, Squaremouth recorded an immediate 13% increase in CFAR-related searches and a 48% jump over the same period last year.

CFAR offers partial reimbursement for prepaid and non-refundable trip payments if you want to cancel your trip for a reason not otherwise covered by the Trip Cancellation benefit, like financial stress related to the stock market's recent volatility.

Interruption For Any Reason Surges As Travelers Seek Even More Flexibility: Travelers aren't just seeking maximum flexibility in the lead up to their trips. Interruption For Any Reason (IFAR) coverage has also seen a surge of interest. This type of coverage allows travelers to cut their trip short for any reason not covered by standard policies, like wanting to leave a country due to geopolitical tensions or political hostility.

Searches and inquiries related to IFAR during the months of March and April of 2025 are up a staggering 260% when compared to the same time last year.

Labor Market Cooling Fuels Work-Related Cancellations
Tariff tension isn't the only cause of concern for travelers. An uncertain economic outlook and federal workforce reductions have created fear for potential layoffs and job insecurity, leading to a spike in interest for more comprehensive cancellation coverage.

Squaremouth reports a whopping 223% increase in travelers searching for Cancel For Work Reasons coverage this past April compared to the same time last year.

About Squaremouth
Squaremouth is a trusted name in the travel insurance industry offering comprehensive, transparent, and competitive coverage to travelers for 20 years through its digital platform. With the largest portfolio of travel insurance carriers and products in the U.S., Squaremouth has insured over 4 million clients.

Media Contact
Ned Tadic
ntadic@squaremouth.com 

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SOURCE Squaremouth