AXA follows other insurance giants like Mondiale and AIG into this field, but with one significant differentiation. By partnering with Airsavings, AXA’s world-renowned insurance products and expertise are paired with Airsavings’ AirlinePlus Dynamic Packaging technology, creating a dynamically adapted insurance product unavailable from any other carrier, at any price. While the established model for trip insurance is a uniform product, unilateral in its coverage regardless of trip duration, number of passengers, or the proximity of the booking date to the departure date, Airsavings’ AirlinePlus platform takes all of these variables into account, yielding a tailor-made insurance product for each individual passenger.
The process, like the partnership itself, reflects Airsavings’ multi-tier philosophy concerning ancillary revenue creation - offer a wide range of services, increase the volume of services sold, and enhance the margins of those services. The segmentation of AXA’s insurance product made possible by Airsavings’ dynamic packaging leads to both a diversity of product available (an almost infinite diversity, considering each flight situation is somewhat unique) and a more attractive offering in the eyes of the traveler, increasing the probability of purchase. As trip insurance is generally considered one of the highest-margin/lowest-cost ancillary services currently offered, the
AXA partnership fulfills the third aspect of the ancillary revenue ethos as well.
Airsavings’ alliance with AXA Assistance - a subsidiary of AXA Group, the global insurance leader with presence in 80 countries and with more than €1.3 trillion in assets under management - will include AXA as the preferred Channel Partner for the low cost airline market. The partnership with AXA and the subsequent integration of their travel insurance services into the AirlinePlus platform instantly brings quality brand recognition, as well as the best conversion rates and the highest margins possible to participating LCCs.
Paris-based Airsavings, an integral partner and respected back-end force for LCCs, specializes in ancillary revenue generation through the development of ancillary products and services, and through the effective utilization of strategic alliances- as evidenced by its recent partnership with AXA Assistance. Airsavings also facilitates the creation of purchasing alliances, enabling LCCs to achieve otherwise unattainable economies of scale - a key component of the low cost carrier operational model.
“By partnering with such a large and well-regarded company as AXA, we believe that the trip insurance component of our ancillary service offerings has the potential to be one of the most popular-and profitable- offerings,” says Airsavings CEO Raphael Bejar. “LCCs have always been early adopters of new ancillary services, and we hope with AXA on board, even more will participate in trip insurance, and benefit from increased profits as a result.”
The 2008 Ancillary Revenue Conference hosted by EyeforTravel, takes place at the Clontarf Castle Hotel Dublin, from 20th-21st February, 2008, where representatives from Airsavings and AXA Assistance will be available to discuss the new partnership and exclusive product offerings to the airline industry.
TravelDailyNews International is the Media Supporter of the event.
Michael Verikios - Thursday, February 21, 2008