Earlier today the Consul General at the Embassy in Lima was answering questions on Facebook and she mentioned several times that the Peruvian police had stepped up their presence in Cusco/Machu Picchu in response to the security threat. Then a couple of hours ago they posted that the warning had been lifted. Here's the communication on the State Dept. website:
http://lima.usembassy.gov/warden/emergency_messages.html
We will remain cautious in any event, but I do feel better about the situation.
I did speak to ABD again earlier this week and didn't get a definitive answer on what conditions would lead them to cancel the trip. I was told that their Global Security Team assesses the situation and decides if the trip should be cancelled. So, still don't know if the trip would have been cancelled if the warning were still in place. Luckily, I won't need to find out. Next time, depending on where I'm traveling, I may forego ABD's
travel insurance and get insurance that allows me to cancel for any reason, so I'll be the one deciding what level of risk is acceptable to me. The ABD polciy doesn't provide converage if there is only a threat. Here's what it says: