Why Fintech Will Be Key to the Future of Travel

Skift Take

In this video conversation from Skift’s Megatrends 2022 event, Skift Founder and CEO Rafat Ali spoke with Dakota Smith, chief strategy officer at Hopper, about how fintech products are ushering in a more nimble version of travel insurance attuned to the diversifying needs of today’s traveler.

Hopper | Cloud

In this video:

• Fintech is disrupting the traditional travel insurance model. Because of heavy regulation in the insurance industry, travel merchants are stepping in to provide solutions that offer risk prevention services, such as Hopper’s Price Freeze, Cancel for Any Reason, Change for Any Reason, Flight Disruption Guarantee, and more.
• Consumer demand for travel insurance is growing and evolving. The need for security when travel plans go awry is obvious in the current climate, but the uncertainty due to Covid has only brought to light the need for a diverse array of travel de-risking solutions suitable for the next generation of travelers.
• The customer base for fintech is expanding. People think of fintech as a newer trend popular among younger consumers, but there’s growing interest from other user groups as well. Given the trends for longer and more expensive and exotic trips, travelers at the higher end of the spectrum — in both cost and age — are seeing immense value in spending a little bit more to ensure peace of mind.

Amidst a prolonged period of uncertainty and volatility, travelers want the freedom to make plans and purchases without financial risk if those trips are upended by factors outside of their control. Fintech solutions are automated, instant, and provide quick resolutions — a notable contrast from traditional travel insurance claims — offering a huge opportunity at this pivotal moment for the travel industry. Increased booking confidence is good for both the traveler and the travel provider, and these solutions will be instrumental in propelling the recovery and momentum in the years beyond.

In this video from Skift’s Megatrends 2022 event, we hear from Dakota Smith, chief strategy officer for Hopper, in conversation with Skift Founder and CEO Rafat Ali, who spoke about how the combination of enormous pent-up demand for travel is colliding with consumers’ needs for flexibility in the way they book, ushering in the rise of fintech products as a more nimble evolution of the travel insurance business.