Selling luxury holidays or complex dynamic packages (e.g., to Saudi Arabia) has often hit one major barrier: the client's fear of losing money. A new strategic agreement between ECTAA and Trip Guaranty Group (TGG) removes this blockade once and for all.

Every travel agent and tour operator knows this scenario. The client loves the offer, the itinerary is perfect, but when looking at the final price—often thousands of dollars/euros—hesitation kicks in: "What if my plans change? What if the global situation gets worse?"

The traditional industry answer—"Please purchase cancellation insurance"—is no longer enough. Clients know that old-school policies only work in dramatic circumstances (illness, accident, court summons). They do not protect against a simple change of mind.

That is why the collaboration between ECTAA (The European Travel Agents' and Tour Operators' Associations) and Trip Guaranty Group (TGG) is a game-changer. It introduces a solution that fundamentally shifts the balance of power in the market.

"Add Guaranteed Cancellation to the Package" – The End of Booking Stress and a Win for Industry Revenue

The New Model: Outsourcing the Risk

The key to understanding this revolution is that in this model, financial risk is borne neither by the client nor by the travel agency. The risk is entirely taken over by an external guarantee provider.

How does this work in practice with Dynamic Packaging?

The mechanism is simple and can be systematically "plugged in" to the booking process:

  1. The client selects a package (e.g., flight + hotel in Saudi Arabia).
  2. The system offers an ancillary service: "Cancel For Any Reason" (CFAR) Guarantee.
  3. The client pays a specific fee for this service, which goes directly to the external provider (TGG).

A WIN-WIN Situation: Why does it pay off for both sides?

This solution brilliantly reconciles interests that were previously contradictory: the client's need for flexibility with the organizer's need for financial stability.

1. The Client's Perspective: "I pay for peace of mind" For the tourist, this marks the end of reading the "fine print" in insurance terms and conditions.

  • No questions asked: The client doesn't have to prove they are sick.
  • No bureaucracy: No gathering of medical certificates.
  • Total freedom: They can cancel at the last minute because their business plans changed, family matters came up, or they simply lost the desire to travel. TGG refunds their money.

2. The Industry Perspective (Agent, Tour Operator, DMC, Hotel): "The commission stays with us" This is the most critical update for the B2B market. When a client cancels a trip under this guarantee:

  • The System/Agent: Does not have to refund money from their own cash flow.
  • The Hotel/DMC: Keeps the payment because the base offer was sold as non-refundable (Non-Ref).
  • The Commission: The agent retains their earnings for the work done.

Dynamic Packaging with No Brakes

For Dynamic Packaging technology, this is the missing link. Often, the most price-competitive packages are built on non-refundable services (Low-Cost flights, "early bird" hotel rates). Until now, selling such offers carried the risk of client dissatisfaction in the event of cancellation.

Now, we can combine fire and water:

  • Offer the client the best price (based on Non-Ref rates).
  • Offer the client total safety (thanks to the external guarantee).

The introduction of this standard by ECTAA (The European Travel Agents' and Tour Operators' Associations) is a signal that the travel market is maturing. We are moving from a model of "insuring against disasters" to a model of "managing freedom of choice." In an era of uncertainty, this peace of mind is the most valuable product we can sell.

Key Takeaways: How the ECTAA & TGG Deal Changes the Game

  • The Problem Solved: High-value bookings (like to Saudi Arabia) often stall because clients fear losing money, and traditional insurance is too restrictive.
  • The Solution: A new "Cancel For Any Reason" (CFAR) guarantee, offered as an ancillary service where an external provider (TGG) takes 100% of the financial risk.
  • Client Win: Total flexibility to cancel at the last minute with no questions asked and no bureaucracy.
  • Industry Win: Agents and suppliers sell non-refundable rates but face zero risk of chargebacks. When a client cancels, the agent keeps the commission, and the hotel/DMC keeps the payment. The refund comes from TGG.
  • The Future of Dynamic Packaging: This allows combining the best prices (Non-Ref) with the highest security, removing the final barrier to sales growth.