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The accommodations industry might be cyclical, however excellent customer relationships are not. Hotel brands with strong client loyalty will have an advantage over competitors, no matter what occurs with hotel rates, travel need, and guest expectations, or whether the economy is good or bad.
On the heels of the Covid-19 pandemic and the unpredictability and volatility in the travel industry following in its wake, hotels have actually been squarely concentrated on ways to show visitors that they appreciate them personally. By using travel insurance coverage as a method to supply end-to-end customer care to their guests, hotels can enhance the traveler experience while winning repeat service, growing commitment, and structure client lifetime worth.
Why Travel Insurance coverage Is Having a Moment
Travelers have ended up being more attuned to travel insurance coverage than ever in the past. According to a 2021 Allianz Partners U.S.A. survey, 84 percent of customers who had actually bought a policy in the year prior said they ‘d be most likely to redeem travel insurance in the future. Significantly, 48 percent of those participants were newbie purchasers of journey defense, highlighting the rise in need over the past several years.
The waves of unpredictable situations that ended up being associated with international travel in 2022– irregular travel restrictions, flight cancellations, systems blackouts, etc– are anticipated to ravel as the shock of the pandemic fades further into the rearview.
While travel planning and booking is nearly back in full force, consumer trust has actually been harder to restore.
“Each experience throughout a tourist’s journey can make the distinction in between dream trip, business-as-usual, or trip-from-hell,” said Chris Garlock, vice president, marketing method, Allianz Partners. “Today’s less predictable travel experiences have many tourists now seeing travel insurance coverage as an important, and basic, part of journey preparation– they don’t simply anticipate it, they demand it.”
With customer sentiment trending in this instructions, it’s important for hotels to reassess their role in providing peace of mind to guests. As hotel brand names compete with each other for opportunities to construct long-lasting relationships with devoted clients, numerous are beginning to provide travel insurance coverage directly as part of the buying procedure.
How Hotels Can Build Trust Through Travel Insurance Coverage
Unpredictability is the brand-new regular, and travelers are looking for protection from the unknown. Undoubtedly, according to a December 2022 survey of 971 travelers from Personal Financing Insider, 35 percent of travel insurance buyers did so “primarily since they were concerned about the travel supplier they reserved with, and feared issues like postponed flights or moved reservations.” Just 11 percent said they always purchase travel insurance out of practice.
Additionally, the survey found that just 55 percent of insured tourists went through their company, i.e. an airline company, cruise, or tour group, to purchase protection. These stats indicate a big opportunity for hotel brands to step in and highlight the unique advantages they can offer across the whole travel journey.
Hotels have traditionally been able to provide more variable cancellation policies that finest match the traveler in comparison to flights and trips, for instance, which need more rigid scheduling and inventory. As an outcome, consumers may be more naturally inclined to buy insurance coverage through a hotel, if they’re aware of the offer.
“We remain in the midst of a historical shift throughout the travel market, where travel suppliers are breaking free from the concept that each is simply an independent star within their respective piece of the travel worth chain,” said Garlock. “While travel insurance has traditionally been viewed as a welcome security blanket for things like flights, cruises, and trip plans, hotels have actually long offered something others have not: flexibility.”
Among the advantages tourists might not recognize is that acquiring insurance coverage through a hotel can extend protection to everyone staying in a room– consisting of family and friends. It can also offer repayment for prepaid, non-refundable expenses beyond simply the expense of the space, like flights, leasings vehicles, or tickets to a Broadway program for all of those people.
Timing Is Whatever
Given the prospective advantages to the consumer experience, hotels need to be thinking about how insurance fits into the larger context of each guest’s journey. The concern remains how they can produce the ideal deals for the best visitors at the correct time.
Helping with guests’ consideration of trip defense throughout the research process and offering it at the time of reservation can assist tourists conserve valuable time and effort. Garlock kept in mind that it’s important to look at all stages of a traveler’s journey, the feelings they are feeling throughout, as well as the logical monetary choices along the method.
“Numerous travel companies have seen travel insurance coverage as a terrific ancillary income opportunity, however it’s way more than that, particularly for hotels,” he stated. “Guaranteeing the aspects of awareness, education, and decision-making are spread throughout the journey constructs confidence to book, which translates to happier customers and lead to more revenue.”
Picking the Right Partners
By gathering as much consumer data as possible throughout the booking procedure, hotel brands can contextualize a deal that secures as many elements of the trip as a traveler requires. Partnerships provide access to extra details that can assist tailor offerings further.
“We see tourists, not transactions, and it’s our responsibility to be an extension of our partners’ brands,” stated Garlock. “At the end of the day, we desire our customers to feel fantastic, our partners to look good, and to offer a friction-free method to make clients happier. Visitors desire it, and honestly, deserve it.”
As an illustration, Allianz’ proprietary e-commerce reservation platform curates the most pertinent travel insurance coverage deal personalized to each visitor’s reservation. Additionally, Allianz gathers and determines customer choices while supplying feedback and resolution points for customers in need. Hotels and other travel brands would not necessarily collect this information by themselves, and it gives them a more complete view of their customers.
“If you’re not currently providing your guests travel insurance coverage, consider what a partnership can do for both you and your organization,” Garlock included. “Everybody in the travel market remains in a race to determine who can look after consumers best– which’s a win-win causing higher consumer lifetime worth gains, competitive benefits, and long-term growth potential customers.”
To read more about customized travel insurance for hotels, see AllianzPartners.com. Terms, conditions and exclusions apply to all travel insurance strategies. See Details and Disclosures.
This content was created collaboratively by Allianz Partners and Skift’s branded content studio, SkiftX.