We all want to be protected when travelling. Consumers are tired of flight delays and all the inconvenience, wasted time, incurred losses and additional expenses they entail. We also want positive experiences, particularly when it comes to compensation. Consumers are tired of long and tedious claims processes; compensation failing to take into account additional derived losses; and rigid travel insurance policies that are not tailored to individual needs.
We want flight delay insurance to be personalized and relate to consumer-specific behavior, needs and preferences, as well as offer immediate and automatic compensation.
When booking a flight, consumers get offered various add-on services such as car rental, extra luggage, special meals, better seats – and also insurance. We expect the insurance offering to be attractive and relevant just like the other products offered to us in the customer journey.
This means flight delay insurance that’s built and priced according to individual travel arrangements and potential loss. A delay means something different for someone travelling on a 1-day business trip, as opposed to a family heading out on vacation with a low-cost carrier. Hence, the flight delay insurance offered to these travellers needs to be different in terms of price, cover and compensation.
As defined by IdeaWorksCompany “revenue beyond the sale of tickets that is generated by direct sales to passengers, or indirectly as a part of the travel experience”. Bespoke insurance not only delivers consumers a better experience; it also provides a valuable ancillary revenue stream for the online travel agents that are offering the insurance.
Flight delays cannot always be avoided; however, the way such unexpected events are handled makes the difference between negative and positive customer experiences. By offering personalized, transparent and claims-free insurance, online travel agents can build loyalty among their travellers, safeguard their reputations and create a valuable stream of ancillary revenue.
And yes, albeit the delay, that will make us much happier travellers!
About the Author
Elana Marom is a full stack marketer who believes that marketing is about being present, relevant and adding value, alongside understanding how customers want to buy and helping them to do so. As Director of Marketing at Setoo, she’s leveraging her extensive marketing experience in start-up and enterprise environments to raise awareness about the paradigm shift evolving in the insurance industry and drive business growth.