The traveling industry has weathered its fair share of turbulence in recent years, but one thing remains constant: travelers crave peace of mind. Our latest study, “2024 Top 50 Airlines Travel Insurance Benchmark“, dives deep into the world of airline ancillaries, exploring how the leading carriers are catering to this growing demand for security and comfort.
This year’s analysis marks a significant expansion from our previous research, venturing beyond the realm of travel insurance (though that remains a key focus) to encompass the full spectrum of ancillary services.
Here, we unveil five key takeaways that are shaping the airline ancillary landscape:
Our study reveals a resounding affirmation of the value airlines place on travel insurance. A staggering 94% of the top 50 airlines (47 out of 50) now offer this crucial service, marking a clear pivot towards integrated customer security. This widespread adoption reflects the industry’s recognition of the anxieties plaguing travelers in today’s uncertain world.
The presence of renowned insurance providers like AIG, Allianz, Chubb, and XCover as partners underscores the airline’s commitment to offering passengers trusted and reliable coverage options. This trend presents exciting opportunities for traveling insurers to tailor their offerings to the specific needs of airlines and their passengers.
While the majority of airlines stick with their chosen insurance partners traveling, our study reveals a noteworthy increase in insurer switches compared to previous years. This dynamism indicates a maturing market, with airlines becoming more discerning and seeking partnerships that offer the best value and innovation for their customers.
Insurers for traveling, this trend presents both challenges and opportunities. On the one hand, it necessitates staying ahead of the curve with cutting-edge products and services. On the other hand, it opens doors for new entrants to carve a niche in this evolving landscape.
Our research highlights a remarkable surge in the adoption of in-path travel insurance. 82% of airlines benchmarked in 2023 now offer this convenient option, as in 2021. This dramatic increase speaks volumes about the effectiveness of in-path insurance in capturing the attention of passengers at the point of purchase, making it a prime area for travel insurers to focus their efforts.
Aligned with the notable increase in the adoption of in-path travel insurance, our research uncovers a significant trend in the incorporation of white-label travel insurance solutions. In 2021, a conservative 16% of the top 50 airlines incorporated white-label travel insurance into their offerings. This figure experienced a substantial surge in 2022, with 44% of leading airlines opting for white-label insurance. As of 2023, this upward trajectory persists, showcasing a remarkable increase to 52% of the top 50 airlines embracing white label insurance solutions.
The emphasis on in-path travel insurance reflects an industry finely attuned to the evolving expectations of modern travelers. Airlines now acknowledge the importance of seamlessly integrating travel insurance at various touchpoints throughout the traveler’s booking journey, offering both convenience and transparency. This transition presents an opportune moment for airlines to not only meet but exceed the expectations of their tech-savvy and discerning clientele, forging a path toward a more seamless and customer-centric travel experience.
As we chart the course of travel insurance in the airline sector, two noteworthy trends also emerge. Firstly, there’s a notable shift towards placing insurance options on the add-ons page, surging to 85% in 2023. This strategic move not only enhances visibility for passengers but also fosters informed decision-making, contributing to a more transparent and passenger-centric journey experience.
These strategic shifts not only align with the industry’s quest for transparency and ease of use but also underscore airlines’ adaptability in meeting the evolving expectations of modern travelers.
In recent years, the majority of leading airlines have opted to offer just one plan for in-path travel insurance integration. This preference for streamlined options suggests that airlines prioritize ease of purchase and clarity for their passengers over a complex array of choices.
Diving deeper into the details, in 2021, 66% of the 30 airlines equipped with in-path journey insurance chose to provide a single plan. This pattern strengthened in 2022, with 78% of the 37 airlines aligning with this approach. However, moving into 2023, there is a subtle decline in the prevalence of the single plan option. This indicates a growing openness among journey insurers to diversify their offerings, now exploring a range of 2-3 travel insurance plans for travelers.
This trend presents both challenges and opportunities for White label insurance. While it necessitates tailoring offerings to meet the specific needs of each airline’s passenger base. It also opens the door for exploring and developing diverse travel insurance product options.
The rising importance of travel insurance, and convenient in-path options. And smart placement of these offerings, all highlight a clear trend in the airline industry prioritizing passenger security and ease of journey.
Insights for travel insurers:
Insights for other travel industry players:
The rising importance of traveling insurance, convenient in-path options, and smart placement of these offerings. All highlight a clear trend in the airline industry: prioritizing passenger security and ease of journey. The skies ahead are clear—buckle up, for the future of the journey looks promising indeed.