Looking into 2024, forecasts predict that a staggering 4.7 billion people will embark on journeys across the globe. By 2033, the travel industry is poised to reach a remarkable USD$15.5 trillion, representing over 11.6% of the global economy. It’s clear that travel is more integral to our lives than ever before. In this bustling and ever-expanding sector, travel insurance plays a crucial role in safeguarding our adventures. Travellers invest in insurance not just for peace of mind but for immediate protection against unexpected situations and hurdles: 53% for medical emergencies, 44% for lost baggage, and 40% for trip cancellations or interruptions, ensuring that their journeys remain as seamless and safe as possible amidst the complexities of modern travel.

Experiencing Unforeseen Circumstances During Travel

In today’s article, we interviewed 3 industry leaders— CS Soong, CEO from Klook Protect, James Ellis, Vice President, Business Development, Asia Pacific from Collinson International, and Paddy Au, Director, Partnerships, Hong Kong and Global Strategic Partnerships from bolttech who are transforming the travel experience with their innovative solutions. Unforeseen disruptions, such as missed attractions or flight delays, can significantly impact a traveller’s enjoyment, turning a long-awaited journey into a stressful ordeal. Whether caught in a heavy downpour or stuck at an airport with no immediate relief, these interruptions can overshadow the thrill of travel.

By leveraging advanced technology and extensive lounge networks, Klook Protect, Collinson International, and bolttech are providing travellers with much-needed comfort and support during these unpredictable moments. Klook has distinguished itself with Klook Protect, a travel insurance solution designed to meet the diverse needs of today’s globetrotters. This initiative underscores Klook to ensure that travellers get to continue to be adventurous, but without compromising their safety and peace of mind and ensuring travellers are well-protected.

Meanwhile, Collinson International, a global leader in the provision of airport experiences, loyalty and customer engagement solutions, and owner and operator of Priority Pass, helps alleviate stress for travellers through their solution SmartDelay; which provides immediate access to over 1,500 airport lounges and travel alternatives globally in the case of flight delays or cancellations. By offering SmartDelay as an instantly redeemable benefit, insurance brands can be there for their customers when pre-flight disruptions occur. 

On the technology front, bolttech is revolutionising the insurance landscape. By connecting insurers, distribution partners, and customers through its advanced platform, bolttech simplifies the process of buying and selling insurance.

Read on to find out more about how each of these companies leverage on technology to come up with innovative solutions to combat the challenges faced by travellers.

Challenges Faced by Travellers

Despite these advancements, travellers face a multitude of challenges that can disrupt their journeys and diminish their overall experience. We asked the 3 industry leaders to share with us some of the key challenges they feel travellers are facing and they identified the following:

• Overwhelming Travel Policy Market: CS from Klook Protect has mentioned that there can be too many options and consumers may be unsure about the differences in travel insurance policies. With a myriad of options available, travellers can feel overwhelmed by the sheer number of policies and unclear differences between them, making it challenging to select the right coverage.
• Natural Disasters: According to James from Collinson International, in August this year, Typhoon Prapiroon resulted in 303 cancelled flights, 158 delayed flights, and 98 diverted flights to nearby regional hubs from Hong Kong International Airport alone. Global research from Priority Pass, owned and operated by Collinson, revealed that more than 6 in 10 (62%) travellers say pre-flight issues can initiate stress and a ‘Fear of Switching Off’ (FOSO) for the rest of their trip.
• Not Purchasing Travel Insurance on Time: Paddy from bolttech added that another common challenge they often see is travellers forgetting to buy travel insurance at the ‘right’ time – buying travel insurance after known perils have occurred can potentially lead to rejected claims.

Innovative Solutions for Modern Travel Challenges

To address these travel stressors effectively, innovative solutions have been developed by industry leaders, offering enhanced protection and convenience for travellers.

CS has mentioned that Klook Protect has also leveraged user insights to tackle common travel pain points. Through extensive user research and feedback analysis, Klook Protect identified key areas for improvement and introduced the Satisfaction Guarantee. Their product, the “No-show Refund”, addresses the need for flexibility in activity bookings—one of their core offerings that is sold as an upgrade on Klook bookings. This solution was specifically designed to mitigate protection challenges related to activity reservations, reflecting Klook’s commitment to enhancing the travel experience based on real user needs.

Similarly, James from Collinson International said that it has advanced its solutions through its in-house platform, SmartDelay, which integrates with Cirium’s cutting-edge flight tracking technology  to provide insurance brands’ customers with instant access to airport lounges or travel alternatives as soon as a delay or cancellation occurs. With data showing that 1 in 4 flights in the Asia Pacific region experienced delays of at least 15 minutes in 2023, and over 100 million travellers affected by delays of over an hour, SmartDelay offers timely, direct communication to travellers, seamlessly integrated with insurance brands’ existing customer systems to help them stand out from the crowd and build customer loyalty with a highly valued benefit.

bolttech, through its partnership with Trip.com, provides Trip.com customers with timely access to travel insurance via both mobile and desktop platforms. By embedding insurance into the journey, bolttech ensures that travellers have easy access to tailor-made coverage options right when they need them, thereby improving the overall customer experience and offering peace of mind.

Leveraging Technology to Enhance the Traveller's Experience

In today’s travel landscape, technology plays a crucial role in improving the travel experience and addressing common issues faced by travellers.

Klook has integrated advanced technology to enhance their travel insurance offerings. Their appplication data is also used to give the confidence and backing to launch new products with our insurance partners. Their Singapore travel insurance which comes with lounge access coverage automatically detects flight delays through flight data APIs, providing travellers with lounge access passes automatically, as long as they registered beforehand automatically, as long as they registered beforehand. This technology extends to other benefits as well, such as telemedicine services, which help overcome language barriers when accessing local medical care.

Collinson International utilises a streamlined approach to flight disruptions through their platform. Travellers who register their flights receive immediate notifications via email and text if a disruption occurs. They are then issued a QR code that grants them access to various airport amenities, including lounges, spas, gaming areas, sleep pods, and food and beverage vouchers. This system eliminates the need for a claims process or additional documentation, offering a low-cost, scalable solution that allows travellers to redeem their benefits instantly.

bolttech employs data analysis to refine their travel insurance offerings and address common traveller issues proactively. For example, in response to the recent 7.1 magnitude earthquake off the coast of Miyazaki Prefecture in Japan, bolttech preemptively informed their channel partners about the coverage details related to the event. This proactive communication helped manage the expected increase in claims inquiries and eased the pressure on their support systems.

Utilising Technology in Response to the Traveller’s Journey

CS from Klook shared that their Singapore travel insurance lounge access coverage auto-detects when their flight is delayed using flight data APIs and will automatically provide travellers with the lounge access pass without prompting. They have also leveraged technology in other benefits such as the provision of telemedicine which helps customers get around the language barrier difficulty if they were to see a local doctor.

James from Collinson International noted that travellers simply register their flight and are sent an email and text notification if their flight is disrupted. They are immediately issued a QR code that gives them access to an airport lounge or alternative benefits such as spas, gaming lounges, sleep pods, and food and beverage vouchers or discounts. There’s no claims process or need for additional documents (as in traditional insurance), and it’s a scalable benefit associated with a low cost to price ratio. Travellers simply redeem their instant benefit.

In bolttech’s case, they analyse claims data to identify trends, enhance coverage, and proactively address common issues encountered by travellers. For instance, following the recent 7.1 magnitude earthquake off the coast of Miyazaki Prefecture in Japan, we informed our channel partners in advance about what our travel insurance would cover. This proactive approach helped manage the anticipated surge in claims enquiries and alleviated the pressure on our support systems.

It is truly a wonder that companies are currently building processes where avid travellers like us are able to travel with ease. Where travel disruptions are inevitable, being able to have access to these advanced services make all the difference, turning a potentially frustrating experience into one of ease and reassurance.

The challenges of travel—from overwhelming insurance choices to the impact of natural disasters and the timing of insurance purchases continue to test travellers’ resilience and preparedness. However, we are seeing more and more players in the market that are rising to these challenges with innovative solutions that transform potential stressors into opportunities for enhanced comfort and support. These advancements not only enhance the travel experience but also reflect a broader trend toward leveraging technology to address and alleviate common travel challenges. As the travel industry continues to evolve, the focus on providing timely, effective, and user-friendly solutions will be crucial in ensuring that every journey is as smooth and enjoyable as possible.