Tour Operator Default Insurance

Protecting Your Peak Season Revenues

AGW proudly introduces Tour Operator Default Insurance (TOD) — a game-changing financial protection solution for hoteliers across the Gulf region, especially in high-traffic destinations like Makkah and Madinah.

This tailored insurance safeguards hotels against revenue losses caused by the insolvency of contracted Tour Operators (TOs), ensuring business continuity, financial stability, and peace of mind during peak tourism seasons like Hajj, Umrah, and Ramadan.

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Why TOD Matters?

Many Gulf-region hotels rely heavily on TOs to fill rooms during critical revenue windows. When a TO defaults, it creates sudden income loss and operational disruption. TOD steps in to protect against these risks.

Our TOD Approach

We take a holistic approach to managing your wealth, considering your current financial situation, future aspirations, and market opportunities.

1. Key Features

  • Indemnity-based payout covering actual income loss after to insolvency.
  • Time-based compensation scale: Faster bed-night resale = greater reimbursement.
  • Sharia-compliant friendly structure.
  • Annual coverage with no auto-renewal.

2. How It Works

  • Hotel contracts with a TO.
  • TO declares insolvency.
  • Hotel attempts to resell rooms.
  • TOD policy covers unrecovered revenue — up to a fixed percentage, depending on resale timing.
  • Payouts are fast and based on clear, documented loss.

3. Who Benefits

  • Hotels: Stable revenue and risk reduction.
  • Investors & Lenders: Lower credit risk.
  • Brokers: Offer value-driven, in-demand coverage.
  • Hotel Groups: Uniform coverage across multiple properties.

4. Strategic Impact

  • Strengthens your resilience in tourism-dependent economies.
  • Enables confident long-term contracting with TOs.
  • Supports national tourism strategies by enhancing investor confidence.