Paul Frick, vice president of sales EMEA of Pattern Insurance, shares the position reasons behind airlines embedding travel insurance with Travolution
Guest Post: Peace of mind for today's traveller - how embedded travel insurance benefits airlines
The aviation industry is one of the most dynamic sectors of the economy, with airlines competing fiercely for a larger share of the market. To stay ahead of the competition, airlines continually innovate and offer unique services to attract and retain customers. One such service that has gained popularity in recent years is embedded travel insurance.
Embedded travel insurance is a protection offer included in an airline ticket-purchasing pathway. This insurance covers a range of unexpected events that could affect a passenger's travel plans, such as flight cancellations, trip delays, medical emergencies, and lost or stolen baggage. Embedded travel insurance has evolved over the last few years and there are new options that can better benefit airlines.
An obvious place to start is that embedded travel insurance helps airlines increase their revenue streams. By offering this protection as an add-on to their tickets, airlines can generate additional income. This horizon has broadened with more relevant insurance pieces that are personalised to each itinerary. Offering hyper-relevant insurance and travel assistance services uplifts customer conversion and cart size.
Improve Customer Satisfaction
Travel insurance provides customers with peace of mind and protects them from unexpected costs. Follow the customer-oriented strategies below when offering insurance:
Detail: Clearly describe the optional extras and allow consumers to click for more detail.
Bundles: Offer bundles using a “good, better, and best” approach to speed the shopping process.
Choice: Honour the consumer’s right to choose and allow unwanted items to be easily removed from a shopping cart.
Transparent: List the chosen elements and fully disclose the pricing of individual items before check-out.
Customers are more likely to purchase if they can see details and pricing. Using relevant real-time insurance offerings increases the positive experience.
Airlines can take the opportunity to tailor innovative products and pricing in their traveller pathway instead of static content by following these strategies:
● Rethink and transform the customer experience: Offer personalised product and pricing solutions which suit the customer’s needs at every step of the customer travel cycle (before purchase/post purchase/before departure and on the trip).
● Use technology to its greatest advantage: Create unified solutions with AI-powered data that underpin real-time decision-making.
● Optimise business models across the organisation: Connect product development, distribution, and commercial models with intelligent applications focused on improved customer experience and total revenue generation.
Airlines are always looking for ways to stand out, and real-time embedded travel insurance provides a unique advantage. By offering customised, real-time protection, airlines can give customers peace of mind without navigating complicated policies. Partnering with industry leaders can enhance the customer experience through tailored travel insurance and claims-free insurance products. Innovative solutions improve the overall customer experience and create loyal customers. As customers seek added value protection, embedded travel insurance is essential for airlines to stay ahead.