In a strategic acquisition, Irish B2B travel tech firm CarTrawler has taken over Paris-based insurtech Koala. By extending its services from car rental and mobility to travel insurance, CarTrawler aims to enhance its influence in the travel industry. As the demand for flexible insurance products rises globally, this move highlights CarTrawler’s commitment to offering comprehensive travel solutions. Additionally, the acquisition underscores CarTrawler’s strategy of broadening its service offerings to address increasing customer and partner demands effectively.
CarTrawler’s integration of Koala aligns with a long-term focus on expanding ancillary services, a contrast to its earlier concentration solely on car rentals and mobility. Historically, CarTrawler emphasized partnerships with global travel brands, embedding car rental options in booking systems. However, the shift towards travel insurance represents a pivotal expansion into a new market. This diversification parallels growing industry trends where travel service platforms increasingly incorporate insurance offerings.
How Does Koala Enhance CarTrawler’s Portfolio?
Koala’s inclusion in CarTrawler’s portfolio enhances its service offerings with innovative insurance solutions. The API-first and automation-led approach that Koala is renowned for removes traditional insurance challenges. The integration of products such as Cancel For Any Reason and Parametric Flight Disruption Insurance speaks to CarTrawler’s ambition to simplify customer experience and offer more comprehensive travel solutions.
What’s Driving the Demand for Insurance Solutions?
The increasing demand for flexible insurance options is driving rapid growth in the travel insurance sector. Recent trends have shown a consumer preference for frictionless, flexible coverage. CarTrawler’s integration of Koala’s automated, documentation-free insurance model, which offers instant claims decisions, aligns with this evolving customer demand. Peter O’Donovan, CEO of CarTrawler, highlighted the need to adapt to these demands:
“The demand for B2B travel ancillary solutions continues to increase, with our travel partners asking us to add these solutions to our offering.”
Koala’s products are already in use by more than 70 travel partners across 17 countries, providing a proven model that CarTrawler can integrate seamlessly into their platform. This strategic move positions CarTrawler to compete in the burgeoning market of travel insurtechs, which are focused on simplifying insurance processes for customers.
The acquisition also emphasizes the strategic importance of ancillary revenue. With airlines now earning a significant portion of total revenue from such services, CarTrawler’s inclusion of insurance solutions aligns with industry trends. Insurance is becoming a major contributor to revenue streams, facilitated by the need for flexible, “no-questions-asked” policies, which increasingly appeal to today’s travelers.
CarTrawler’s extensive partner network and platform, which encompasses over 2,200 car rental and mobility suppliers across 50,000 locations, allows for a substantial reach. The acquisition of Koala facilitates more enriched service offerings, enhancing the booking journey for travel brands.
“We’re excited to include Koala’s offerings, which align perfectly with our goals to maximize conversion and ancillary revenues,” said O’Donovan.
Travel insurance is a rapidly evolving sector, influenced by changes in consumer expectations and global travel trends. For businesses like CarTrawler, effectively integrating insurance solutions with other travel services is essential to future growth. As competition in the travel insurtech industry intensifies, companies able to streamline and enrich the customer experience will likely secure a decisive edge.
