Cyprus Airways To Start Offering Travel Insurance To Boost Revenue

Cyprus Airways and Airsavings Travel Insurance have agreed to offer travellers insurance products to help boost the airline's bottom line with more sources of revenue.

Airsavings Travel Insurance allows travellers to change their specific type of insurance quickly and efficiently, and appeals to demographics beyond the common 50-something or older traveller, said the company in a statement.

This value-based approach to additional revenue generation has far more growth potential than a fee-based model, according to Raphael Bejar, CEO of Airsavings, because there is a natural limit on the amount of fees that can be imposed.

“Once an airline institutes a fee, it must institute another fee next year (and next year, and so on) or double the fee itself just to maintain the same revenue growth rate it enjoyed in year one. Value-added products such as Airsavings Travel Insurance are not so constrained. By providing a wholly customizable travel insurance experience to passengers, and by partnering with the right companies to deliver that experience, airlines are poised to enjoy the benefits of this innovative new program,” says Bejar.

Cyprus Airways is also in the process of searching for a strategic investor to help boost its financial resources after suffering difficult years amid the economic crisis.

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