The Refund Protection Report:
Research reveals German consumers prefer ‘Cancel for Any Reason’ (CFAR) protection when purchasing live event tickets or booking airfare and accommodations, and are willing to pay more for the convenience
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Consumers in Germany are seeking a seamless experience when buying live event tickets or booking travel, which includes the process of requesting refunds for when things don’t go according to plan. That’s why the majority of consumers, purchasing live event tickets or booking travel, indicated that they’re highly likely to purchase the underlying event ticket, airfare or accommodation when offered ‘Cancel for any Reason’ (CFAR) Refund Protection. The convenience of CFAR protection leads to higher customer satisfaction — as evidenced by a sharp 37 point increase in NPS.
These findings come from our Refund Protection Report, a survey of 612 German consumers.
The report, conducted by Momentive.ai and commissioned by Cover Genius, explores consumers’ experiences when requesting refunds and their interest in adding CFAR protection to their next live event ticket purchase or travel booking.
CFAR protection for live event ticketing
Findings from the report show that German consumers want CFAR protection when booking tickets for their next big event. The majority of respondents (69%) said they’d be highly likely to buy a live event ticket if offered CFAR protection, which enables them to submit refund requests without having to provide documentation (such as a doctor’s note or evidence of transport interruption).
Ticketholders are also willing to pay more for CFAR protection. Respondents said they’d be willing to pay 131% more for CFAR protection than non-CFAR protection (30% of the ticket value vs 13% of the ticket value), with most of them nominating convenience as the primary reason.
According to the study, the ease of requesting refunds without paperwork or documentation has led to an average NPS of -20 for those customers in Germany who have recently purchased CFAR protection when buying live event tickets, 47 points higher than those customers who purchased non-CFAR protection.
CFAR protection for travel
As with live event ticketing, the German travel sector has seen high demand and satisfaction with CFAR protection when customers book flexible airfare and accommodation. The majority of travelers in Germany stated they were highly likely (65%) to book airfare when given the option to purchase CFAR protection. Driven by the same convenience, they’d also pay 125% more for CFAR protection than non-CFAR protection.
Travel providers are also seeing a 50 point increase in average NPS when customers book airfare with CFAR protection. This is compared to the poor experiences reported by German customers booking airfare with non-CFAR protection, resulting in a decidedly low NPS of -67.
