EaseMyTrip, a prominent travel aggregator, has recently obtained board approval to venture into the general insurance business. The company’s Chief Operating Officer, Lokendra Saini, revealed in an exclusive interview with ET Online’s Gourab Das that the addition of this new venture is expected to bring a substantial revenue boost to EaseMyTrip’s overall business. Saini also shared insights on the company’s suggestions to the government regarding the newly imposed 20% Tax Collected at Source (TCS) on overseas travel, which is set to impact the industry starting in July, coinciding with the winter booking season. Despite these challenges, Saini expressed optimism about the travel industry’s performance, citing robust summer travel trends and the anticipation of a record-breaking season in 2023.
Reasons for Entering the General Insurance Business:
When asked about the rationale behind a travel aggregator entering the general insurance business, Lokendra Saini highlighted the strong connection between insurance and travel. Travelers often seek insurance coverage for various aspects related to their journeys, including life insurance, travel insurance, and coverage for unforeseen circumstances. By offering insurance products, EaseMyTrip aims to provide its customers with comprehensive protection and peace of mind during their travels. While managing the operational aspects of the insurance business will introduce new challenges, Saini emphasized that EaseMyTrip’s commitment to customer-centricity remains unchanged. The company has already been offering insurance products through third-party providers, and the transition to an in-house insurance business will involve additional resources but will build on their existing expertise.
Operational Considerations and Revenue Impact:
EaseMyTrip acknowledges that managing the general insurance business will add a new operational layer to their operations. However, the company’s customer-centric approach, which prioritizes addressing customer queries promptly and effectively, remains unchanged. While additional resources will be required, the familiarity with insurance products gained through their existing partnerships will facilitate a smoother transition. Furthermore, Saini expects the entry into the general insurance business to generate a significant increase in revenue for EaseMyTrip. By expanding their service offerings and catering to travelers’ insurance needs, the company anticipates a positive impact on its bottom line.
Addressing Challenges in the Travel Industry:
In addition to discussing EaseMyTrip’s foray into the insurance sector, Lokendra Saini shed light on the challenges posed by the newly introduced 20% TCS on overseas travel. EaseMyTrip has been actively engaging with the government, proposing alternative solutions to mitigate the impact of this levy. As the industry prepares for the winter booking season, which commences in July, Saini emphasized the importance of finding a balance that allows travelers to enjoy seamless experiences while ensuring the sustainability of the travel sector. Despite these challenges, Saini expressed confidence in the travel industry’s performance. Noting the robust summer travel trends, he expects the year 2023 to be a record-breaking season, demonstrating the resilience and potential of the travel market.
Conclusion:
EaseMyTrip’s entry into the general insurance business marks a strategic move to enhance its service offerings and provide comprehensive solutions to travelers. By leveraging its customer-centric approach and existing expertise in insurance products, the company aims to address the insurance needs of its customers effectively. The anticipated revenue boost from the insurance business highlights EaseMyTrip’s commitment to diversifying its revenue streams and expanding its market presence. Despite challenges such as the newly imposed TCS on overseas travel, the company remains optimistic about the travel industry’s performance, projecting a successful season ahead. With its focus on innovation, customer satisfaction, and adaptability, EaseMyTrip is well-positioned to capitalize on the evolving needs of travelers and strengthen its position in the travel aggregator industry.
