Travelling abroad? Here are four things to watch out for

From July 19th, the world of travel is opening up once more with the advent of the EU's travel pass, also known as the digital Covid certificate. However, its arrival in Ireland will not mean that the uncertainty which has plagued much of the economy since Covid-19 first hit in March 2020 is likely to disappear in the short-term.

For travellers and holidaymakers, a summer trip in 2021 looks set to be trickier – and more expensive – than many would wish for. Here are four areas you may need to watch out for, with watch being the operative word, as everything is subject to change again before you reach the airport.

1. Travel insurance

The good news, when it comes to travel insurance, is that Covid-related cover has improved significantly since the pandemic first hit in March 2020. The bad news however, is that you can still stand to lose everything.

Jason Whelan, head of travel with Blue Insurance and Multitrip. com, says many insurance policies have changed and now offer added benefits.

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Some policies will now have Covid cancellation cover. This means that, if you have to cancel your holiday because you’ve tested positive for Covid, or a member of your travelling party has (within reason), the costs of your holiday will be covered.

“The advice is to purchase [travel insurance] as soon as you book the trip because you’re covered from cancellation from that day,” says Whelan.

Similarly, if you travel abroad and then test positive for Covid-19, you can get a policy that will cover the costs of having to extend your stay, or for medical treatment, should you need it.

And you can even expect some cover when travelling to a country where non-essential travel is not advised. In such countries, Whelan says, you will be able to get a policy which covers typical travel insurance expenses, such as if you have an accident. What won’t be covered however, are any Covid-19 related costs.

And you won’t pay more for your travel insurance this year.

“We haven’t changed any of our prices as a result of adding on these covers,” says Whelan.

Where you might need to watch out is when it comes to the excess that applies on your policy. Cheaper policies will tend to have higher excesses, which means that if you do cancel your holiday, you will forfeit a certain amount.

With Blue Insurance’s travel policies, for example, the essential policy has a €150 excess dropping to zero for premier plus, while the maximum amount someone can claim for a cancelled holiday is €1,200 on the former and €10,000 on the latter.

Where you absolutely won't be covered, however, is when it comes to a change in advice from Government. If, for example, you book a trip to Spain, and then the Government changes its advice to say that there should be no non-essential travel to the country, and you decide not to go, you may not be entitled to anything back.

This recently happened in the UK, when its government advice on Portugal suddenly changed. According to Whelan, in such cases travellers would have been fully protected under their policies if they had stayed the duration in Portugal, but they wouldn't have been entitled to any cover for buying new flights to get home earlier.

If your flight is cancelled, you will get your money back, but airlines can be reluctant to cancel flights and may run them empty instead, as was seen last year.

As a result, you may want to book a holiday where at least part of it is refundable in the event that you have to cancel it.

2. Changing flights

If you have to change your travel plans and you can claim under your travel insurance, what flights you book won’t be an issue. As mentioned above, however, if Government advice should change, you could be caught short.

This means that the type of flight you book will be important.

Take Aer Lingus for example. It is currently offering free changes on its flights until the end of the year, although you will have to pay the difference should the new flight be more expensive.

But you may want to further protect yourself by opting for a more expensive flight. A flight to Faro in Portugal on Thursday, August 12th, for example, starts at €87.99; however, by opting for a Plus flight, at €145.99, or Advantage, at €178.99, you will have more entitlements should you need to cancel.

This is because you can cancel your flight and get a voucher if you decide not to travel with either a Plus, Smart, Advantage, Flex, Business or Business Flex fare. With an Advantage flight or above, you can get your money back if you decide not to travel.

Similarly, Ryanair has also made some adjustments. It is allowing free changes on flights (you'll pay the difference if new flights are more expensive) up until September 30th for travel until the end of the year. Changes must be made seven days ahead of planned travel.

3. Covid tests

Another expense which may be impossible to avoid is a test for Covid-19, which may be necessary depending on your vaccination status and where you hope to fly to.

Across the EU, the travel pass will be in place over the coming weeks. It now seems likely that those who are fully vaccinated won’t need to be tested, provided that they can show proof of their injections. What is not clear exactly, however, is what constitutes “full” vaccination; is it two injections, or one for Johnson & Johnson? Or do you need to have waited for a certain period of time after these injections?

Germany, for example, says that "fully vaccinated" means someone who received the final dose of their vaccine at least 14 days prior to entry.

Those who can't show proof of vaccination will need negative Covid tests to enter EU countries, as will children over the age of six. But what kind of test is needed can also differ.

To get into Portugal or Spain, you will need to show a negative PCR test taken within 72 hours of your flight. This is also true for when you return to Ireland.

Other countries, such as Germany or Italy, only require an approved antigen test. These are typically cheaper and quicker.

At Dublin Airport, you can book a 24-hour PCR test for €95, or an antigen test with results in an hour for €49.

In Barcelona, you can get a PCR test with a result on the same day for €120, or €85 for a result within 48 hours. In the Algarve's Albufeira, you can book a PCR test for €70, with results within 48 hours.

For a family of five, where only one person is fully vaccinated, tests will add between about €600 and €800 to the cost of your holiday this summer, depending on whether or not antigen tests can be used on the departure leg of the journey.

Ryanair has a useful guide on test locations and requirements here.

Travel insurance policies typically won’t offer cover for such tests and don’t expect anything back on your health insurance either. A spokeswoman for VHI says Covid-19 screening/tests are not eligible under day-to-day medical expenses.

As with everything, what tests are required for your destination – and for coming back to Ireland – should be carefully considered before departure and again before coming home.

4. Car rental

If you'll need a car for your trip or holiday and are flying, rather than driving to France or the UK on the ferry, then you may well get a shock when you go to book your car rental.

Prices have soared, due to a combination of factors, and this is undoubtedly going to make a typical summer holiday far more expensive.

Consider two weeks in Spain. Arriving in Barcelona airport on July 31st, and returning your car on August 14th , a tiny two-door mini will cost €898.81 on a prepaid basis, while a compact Seat Leon type car will cost €1,048.60, rising to €1,318.23 for an intermediate type car, such as a Renault Kadjar Zen Energy, with Hertz. That’s almost €100 a day for a car rental.

Or what about Italy? Two weeks' rental from Pisa International Airport will cost a staggering €2,259.29 for an economy car, from August 5th to 19th, or €4,060.86 for an intermediate car, such as a Renault Kadjar, again with Hertz.

According to Paul Redmond, chief executive of the Car Rental Council of Ireland, rocketing prices are a factor of growing demand and limited supply. From last March, when the pandemic first hit, car hire firms started depleting their stock, to protect their balance sheets.

“When it happened here in March 2020, there were 21,000 cars on the fleet, with firms getting ready to build up for the summer season. But then things fell off a cliff,” he says, noting that the total volume of cars for rent has slumped to about 9,000-10,000.

And continuing uncertainty throughout the travel and tourism industry means that car hire firms may not yet feel ready to bump up their fleet, hence the soaring prices.

“I’ve no doubt it will come back, but when?” asks Redmond.

A further complication is a slowdown in car manufacturing, caused by a global shortage in semiconductor chips. This is leading to a reduction in output from car manufacturers and challenges for car hire firms looking to re-build their fleet.

So, if you’re reading this before you book, it may make sense to try and pick a destination where a car isn’t necessary, or at least not for the entire duration of the holiday.