Benefits of Embedded Travel Insurance for Airlines.
BLOG PART 1

The Revenue and Customer Satisfaction Benefits of Embedded Travel Insurance for Airlines The aviation industry is highly competitive, with airlines continuously seeking innovative ways to attract and retain customers. Embedded travel insurance has emerged as a popular service, offering peace of mind and protection for passengers. In this two-part blog series, we will explore the benefits of embedded travel insurance for airlines. In this first part, we will focus on how it can increase revenue and improve customer satisfaction.

Part 1: Increasing Revenue with Embedded Travel Insurance

Embedded travel insurance presents a significant opportunity for airlines to diversify their revenue streams. By offering insurance as an add-on to ticket purchases, airlines can generate additional income. Furthermore, with the availability of personalized insurance options tailored to each itinerary, airlines can uplift customer conversion and cart size.

1. Relevant and Personalized Insurance Options: To increase revenue through embedded travel insurance, airlines should offer hyper-relevant insurance and travel assistance services. By clearly describing optional extras and providing detailed information, customers can make informed decisions. Offering bundles using a “good, better, and best” approach also speeds up the shopping process. It is crucial to honor the consumer’s right to choose and allow them to easily remove unwanted items from their shopping cart. Transparency in listing chosen elements and disclosing pricing before check-out increases the likelihood of customer purchases.

2. Platform Flexibility and Innovative Solutions: To fully leverage embedded travel insurance, airlines can rethink their customer experience strategies. By offering personalized product and pricing solutions at every step of the customer travel cycle, airlines can cater to individual needs and preferences. This approach transforms the customer experience and builds loyalty.

Using technology to its fullest advantage is crucial. By creating unified solutions powered by AI-driven data, airlines can make real-time decisions and offer tailored insurance products. Optimizing business models across the organization, including product development, distribution, and commercial models, leads to an improved customer experience and increased revenue generation.