DECADECA Travel and Tourism Practice Exam

What type of plan guarantees a traveler can get their money refunded if they cancel a short trip?

1. Travel Insurance Plan

2. Advance Purchase Plan

3. Emergency Assistance Plan

4. Cancellation Coverage Plan

The correct answer is: Advance Purchase Plan

The correct answer is the travel insurance plan. This type of plan is designed specifically to protect travelers financially in the event they need to cancel their trip for covered reasons. When a traveler purchases a travel insurance plan, they typically receive a refund for non-recoverable costs associated with their trip, such as flights and accommodations, provided they cancel within the policy's guidelines and for covered reasons, like illness or an emergency. Other options like the advance purchase plan may offer discounts or benefits for booking early but do not inherently guarantee refunds in case of cancellation. The emergency assistance plan generally focuses on providing help during travel-related emergencies rather than addressing cancellation refund issues. Finally, while a cancellation coverage plan could sound similar, it may not encompass all situations that a comprehensive travel insurance plan would cover. Therefore, the travel insurance plan is specifically designed to cater to the need for financial protection against trip cancellations.