McGovern Associates, hired as a consultant and later account manager, successfully increased travel protection participation by 10% while decreasing claims by 15% resulting in a significant increase in revenue for the tour operator.
McGovern Associates commenced working with a well-respected worldwide travel company that owns multiple US-based tour operator and cruise companies, with gross revenues in excess of $650,000,000. Given the large size of this travel supplier, they had the capacity and willingness to take on risk and self-insure their private label travel insurance plan. Restructure of their program allowed them to retain the greatest share of the profits. However, they observed fewer travelers were purchasing their travel insurance product, which resulted in lower profits and higher claim payouts as compared to previous years.
Initially, McGovern was hired as a consultant to address this pressing issue. Working with key executives of the travel company, enhanced coverage was initially discussed. Focus was directed toward trip cancellation – perceived by their travelers to be the most important benefit. As such, an “Any-Reason” cancellation feature was added for consumers that needed to cancel their trip for a non-covered insurance cause. The consumer was now offered a choice to either receive a 100% travel credit toward a future trip or a 50% cash refund. To make it even more attractive, the consumer could decide at the time of cancellation. There was nothing else in the market at this time that could compare with this offering.
In addition, a more aggressive distribution process was incorporated into the booking procedure, working within the guidelines of the Department of Transportation regulations. Product pricing was adjusted to better compete with retail plans. These changes created one of the broadest, most attractive travel supplier plans in the industry. To capitalize on this competitive offer, they promoted the insurance product prominently throughout their website. Messaging was created to capture a wider interest from both the consumer and the travel agents selling the plan.
McGovern’s role was expanded as an appointed Account Manager for their individual brand companies. Participation in the program increased by 10% while claims dropped by 15%, resulting in a significant INCREASE in bottom line revenue.