COVID-19 continues to have detrimental effects on the airline industry and travel demand. However, airlines are persistent in finding ways to adapt to the rapidly-changing industry. They are unveiling different methods to establish confidence with passengers. For instance, Lufthansa officially announced an expansion in its COVID-19 travel insurance services.
The Cologne, Germany-based carrier, with other Lufthansa Group airlines – SWISS and Austrian Airlines – plans to provide additional options to its existing insurance packages. The new additions will complement the current offerings, featuring coverage for medical costs and compensation.
Additionally, the new package includes increased flexibility for travel cancellation and emergency return transportation insurance. The Lufthansa Group’s insurance partner, AIG Europe S.A. has broken up the airline’s program into two categories: Travel Care and Travel Care Plus.
Competition in Europe
Lufthansa’s new, updated travel insurance policy could be a crucial component for the airline’s entire group to generate more revenue. The airline’s latest insurance package provides the opportunity to stand out from the competition across Europe.
The carrier will be able to position itself in a better place to combat the effects of COVID-19. Even though business travel has immensely decreased, the holiday season – when travel demand is usually at its highest peak – is approaching.
As a result, leisure travel is expected to rise, and the airlines within the Lufthansa Group can directly compete with its largest foes: Air France-KLM and British Airways. While airlines are scrambling to increase revenue, Lufthansa and its fellow Star Alliance partners can use the new package to attract passengers. Thus, the carrier will be able to raise travel demand and stay afloat.
However, while many countries continue to have strict border closures and complex entry requirements, Lufthansa will need to closely observe how passenger demand is affected, with its introduction of the new, expanded insurance packages.