Shortly after TravelPerk has raised an incredible USD 60 million in another financing round, the business travel start-up announces with FlexiPerk, the largest new product launch in the last 10 years: An option for the refund of cancelled tickets. If the option is chosen by customers, a 10% surcharge will be payable on each booking. In return, TravelPerk guarantees a refund of 90% of all costs in the event of cancellation of flights, hotels, private accommodation, rental cars and rail bookings.
For a long time now I have been discussing with our TMC and travel agency customers the need to think about new products in order to secure an income even with the slow disintegration of the current business models. The topic of refunds has always been on the agenda. Even the variant now launched by TravelPerk as “an invention that will change the business travel world” was addressed to a customer. We then agreed that the market would hardly be prepared to pay a general surcharge of 10% per booking in order to profit again in the event of cancellation. Maybe this assumption was wrong.
That, at least, is what TravelPerk’s statements suggest. Intelligently, the service is not tied to costs, but to a simple, worry-free process. If a cancellation is really necessary, the customer will be credited with 90% of the cost of the booking (without the 10% surcharge) immediately. TravelPerk then takes care of the background processing with the service providers. TravelPerk’s customers are therefore able to book more cheap tickets that cannot actually be cancelled without worrying about the conditions. The price difference between non-cancellable and flexible tariffs is sometimes quite considerable. TravelPerk customers who have tested the service are said to have achieved average savings of 26%. Not insignificant, is it?
Whether the customers will increasingly engage in such a FlexiPerk-deal will be seen over the next weeks and months. If the offer is not worthwhile for TravelPerk and its customers, it will simply disappear from the net without much announcement. TravelPerk is working on many more new products that will be launched in the coming months. For all other providers on the market, this shows that it is possible to play with the possibilities and new services. Even when it comes to well-known products and offers.
What do you think of this “revolutionary” offer from TravelPerk?
Together with my travelBrain colleagues, I will be happy to support you in your search for and development of new offers or to critically review your ideas. And of course we also help companies to further develop the processes and offers according to your needs together with your business travel agency.
Adrian Matt for travelBrain
