TRAVEL GUARD UPDATE

February 2008 - Cruise Issue

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Welcome to the February edition of TRAVEL GUARD UPDATE, a monthly review of key issues for the travel media. These brief items - including news updates, tips and guidance - are designed to keep today's travelers up-to-date on the changing travel landscape and help them make more informed decisions on their travel investment.

Travel Guard invites your comments and suggestions on any areas you'd like to see covered in this regular update. E-mail your thoughts to us at cmccormick@mmgmardiks.com.

*Editor’s note: Optimism for this year's "Wave Season"' (the period between January and March which is traditionally the heaviest booking period of the year for cruises), is high this year among travel agents. Cruise Lines International Association (CLIA) is reporting that 90 percent of its member travel agents expect as good or better year than 2007, 60 percent of agents expect 2008 to be better than 2007 and 20 percent feel it will be their best year ever overall for cruise bookings. This month we look at cruise travel, its popularity, and how passengers can cover their financial investment, as well as their health and safety onboard.

In this month's issue:
PULSE-POLL: CRUISE FOCUS
TRAVEL TIP: OPT FOR CRUISE COVERAGE
EXCEEDING EXPECTATIONS: CARE FOR SEA SICKNESS

PULSE-POLL: CRUISE FOCUS

High Cruising: The majority of travel agents polled in a recent survey conducted by Travel Guard stated that they have seen an increase in clients booking cruises this year. Fifty-three percent said they have seen somewhat of an increase and an additional 9 percent have seen a large increase in clients booking cruises. Another 33 percent have seen no change, while only 5 percent noted that bookings have decreased. The Caribbean is the top destination for cruise bookings this year, according to 63 percent of polled agents. The U.S. (including Hawaii/Alaska), follows as the second most popular, as according to another 21 percent of agents, while the Mediterranean (13 percent), the South Pacific (2 percent) and the Baltic (1 percent) are also noted this year.

Which Cruise?: Half of agents who participated in the Travel Guard poll listed cruise itineraries as the most important characteristic for clients when choosing a cruise line, followed by price, according to 39 percent of agents. Other characteristics that are important according to agents include comfort (staterooms - amenities, size, etc.) say 7 percent, onboard programs/activities/entertainment say 3 percent. Adventure/Ecotourism is an emerging interest popular among cruisers, according to 44 percent of agents in the survey. Dining/Culinary is also popular, noted 24 percent of polled agents, while Sports/Recreation (21 percent) and Arts/Culture (11 percent) are also becoming popular interests among cruisers.

Who's Cruising on What?: Couples (44 percent) and Families (43 percent) are the two groups that are booking the most cruises, according to polled agents. Baby Boomers are also taking cruises, according to an additional 11 percent of agents in the survey. Larger ships are the more popular cruise experience, say more than half (52 percent) of agents in the survey. Smaller ships/more intimate experience is more popular with clients, according to 22 percent of polled agents, but 26 percent say that both sizes are equally popular.

Cruising Concerns: Sea sickness ranks as the highest concern among cruise customers, according to 30 percent of polled agents, but another 22 percent of agents feel cancellation/loss of deposit would really make their clients "sick". Illness on the cruise ship (20 percent), feeling confined (18 percent), medical incident (6 percent) and overeating (4 percent) are also real worries for cruise customers, say agents. Due to recent travel concerns (i.e., illnesses, natural disasters, storms, terrorism), more than half (56 percent) of agents say their customers have expressed more interest in travel/cruise insurance. Another 43 percent have had the same interest in insurance as prior trips.

TRAVEL TIP: OPT FOR CRUISE COVERAGE

Cruises continue to boom in popularity and CLIA is predicting a record year with more than 12.8 million passengers expected to cruise. This year will also bring eight new ships and two redeployed ships to join the cruising fleet, offering more variety and opportunity for cruisers.

Part of a cruises popularity is that passengers pay for their trip upfront, and with the weak American dollar this makes a cruise especially appealing to travelers. One thing cruisers should do, however, is cover this investment with travel insurance in case they need to cancel their trip, or an emergency arises while on board.

The Cruise, Tour & Travel insurance plan available through Travel Guard offers one of the most comprehensive travel insurance plans for those heading for the high seas. Travelers can be covered in the event of trip related expenses such as trip cancellation, interruption and delay; emergency medical treatment or evacuation; lost, stolen or damaged baggage or personal effects; baggage delay; and accidental death and dismemberment. Plus, the plan offers 24-hour/7-day-a-week travel services such as lost luggage tracking, emergency medical assistance, pre-trip health and safety advisories, live e-mail and phone messaging to family and friends and cash transfers.

For more information on the complete line of travel insurance plans available through Travel Guard, visit www.TravelGuard.com.

EXCEEDING EXPECTATIONS: CARE FOR SEA SICKNESS

For Carolyn of Forest City, Iowa, her 10-day Caribbean cruise came to an early end when her friend and travel companion, Wanda, was hospitalized with pneumonia in Mexico during a stop in Cozumel, a port of call.

Luckily, Carolyn had purchased a Protect Assist travel insurance plan through Travel Guard prior to her trip and was able to speak with an assistance coordinator directly over the phone. Not only was Carolyn surprised to find out that she would be covered under trip interruption allowing her to stay behind with her travel companion, but a representative from Travel Assist* was also able to speak with the Mexican doctors to make sure Wanda received proper medical care. Travel Assist's bilingual assistance coordinators relayed information to Carolyn and Wanda’s family back home regarding her medical condition. And, once Wanda was well and fit to travel on a commercial airline, assistance coordinators arranged an evacuation for Wanda and flight arrangements for Carolyn to return home.

Carolyn and Wanda weren't able to finish their Caribbean cruise, but the travel insurance and assistance service plan through Travel Guard helped them in so many ways during a difficult emergency in a foreign country. Plus, Carolyn was reimbursed nearly $8,000.**

For more information on any of the above topics, please contact Colleen McCormick (cmccormick@mmgmardiks.com or 212-219-7560, ext. 6770). For more information on travel insurance programs, visit Travel Guard's Web site: www.TravelGuard.com.

**The scenario summarized above is offered only as an example. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of the policy. Anyone interested in the Protect Assist plan available through Travel Guard should request a copy of the description of coverage for a description of the scope and limitations of coverage.

The travel Insurance plans offered through Travel Guard are underwritten by National Union Fire Insurance Company of Pittsburgh, Pa, a Pennsylvania Insurance Company (NAIC #19445), with its principal place of business at 70 Pine Street, New York, NY 10270, currently authorized to transact business in all states and the District of Columbia. The Policy will contain reductions, limitations, exclusions and termination provisions. All coverages may not be available in all states.

Travel insurance through Travel Guard may include coverage for trip cancellation, travel interruptions and delays, emergency medical expenses, medical evacuation expenses, and lost or delayed baggage. Travel Guard's plans also includes 24-hour travel emergency service* for emergency medical assistance, last-minute or emergency travel changes, lost luggage tracking, pre-trip travel advice, and more. *Assistance services provided by Travel Guard Assist.