Travel Insurance: Scam or Savior? If you’ve ever booked a plane ticket or hotel stay online, you’ve probably been offered an opportunity to “protect” your purchase for an additional fee. Since you’re spending big dollars on your trip, you may have hovered over the option, wondering if it’s a wise investment or a quick money-making scheme. Before you buy, you should know that trip protection and travel insurance are different. When you book directly through the airline or hotel or on a travel website like Travelocity or Expedia, they offer you trip protection. These plans often provide nothing more than a voucher you can use to reschedule in the event of a cancellation — something you won’t need if you book refundable accommodations. But you can also purchase travel insurance through a reputable third party, and these policies offer cash refunds if your trip is canceled or interrupted. They also typically cover lost or damaged bags, and high-quality policies will cover medical emergencies that occur at your destination. But there may be restrictions, so always make sure you understand the terms and buy coverage that offers the protection you want.
It can be hard to swallow the idea of paying more to insure yourself against an event that probably won’t happen. So, can you skip it? The risk you’re willing to take is up to you, but remember the amount of money you’re spending on travel and consider whether it’s worth protecting your investment. While you may decide against travel insurance for your weekend trip two states away, experts recommend always purchasing it for international travel or cruises due to the higher cost and potential for things to go wrong. The price, they say, is usually worth the peace of mind. If you’re going to purchase travel insurance, you should take the time to shop around, just like you did with your accommodations. Not all plans are created equal, so read the fine print and make sure you understand what is covered — and what is not. The last thing you want is to spend your hard-earned money on a policy that leaves you holding the bag.
Delivering the Goods
SHOULD YOU DITCH THE THIRD-PARTY APPS?
By now, you know the price of doing business with third-party delivery apps. Services like DoorDash, GrubHub, or UberEats take a commission of about 30% per order, meaning that costs add up quickly. Some restaurateurs have even found themselves taking a loss. But as the impacts on local business have become more widely understood by consumers, more report a preference for ordering directly from the restaurant; in one study, 70% of customers preferred it. It’s enough to get any business owner wondering whether there’s more money to be made in ditching the apps and doing delivery themselves. Sixty percent of Americans report ordering takeout or delivery at least once a week, and 31% say they use third-party delivery apps at least twice a week. Considering that 59% of
millenial orders are for takeout or delivery, these numbers can only be expected to grow. We are well past the point of swaying diners away from the convenience of eating restaurant food at home. There are benefits to keeping your delivery service in-house — that’s why Chinese restaurants and pizza joints have done so for decades. Restaurants can pocket delivery fees rather than paying them out to apps. And how many times have you received a complaint about a third-party delivery arriving cold or in otherwise unacceptable condition? In-house delivery allows your establishment to perform better quality control. But the drawbacks are just as numerous. Delivery fees seem appealing, but they likely won’t cover the cost of paying your couriers. Then there’s the problem of managing a fleet of vehicles or paying drivers to use their
own. Insurance may be the most prohibitive factor. Delivery is dangerous work, and if you’re underinsured, an accident can cost you everything. A tightly regulated system with only a handful of delivery workers can benefit mom and pop restaurants with only one or two locations. But for franchisors managing multiple locations and looking to grow, the overhead costs, additional management, and insurance headaches are often not worth the commission savings. Fortunately, there is a silver lining. When researchers surveyed restaurant operators, 60% said delivery had generated incremental sales. Other research showed that third-party delivery raises sales volume up to 20%. Those delivery apps have their downside, but they’re becoming a standard cost of doing business.
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