Munich Re and Roomer Travel have announced that Roomer is rolling out its cancellation protection product, which allows online travel agencies (“OTA”) and travelers to make their non-refundable bookings refundable.
Roomer is an Israeli/U.S.-based start-up that has developed a marketplace for reselling and booking non-refundable hotel rooms. With this product, Roomer said in a statement, travelers can cancel their booking up to 24 hours before check-in and get a refund, no questions asked.
Roomer explained that its product is based on a machine learning algorithm that evaluates and dynamically prices every single protection request from OTA partners in real-time considering the reselling probability. Roomer said that the AI-driven approach allows Roomer to consider additional parameters that until now have not been accounted for at the time of booking.
Munich Re developed an insurance product that protects Roomer against large unexpected payouts, which are not predictable even with the machine learning algorithm, that may result, for example, from severe weather conditions. The insurance is underwritten by a primary insurance carrier of Munich Re. With the insurance solution in place, Roomer said, it now is able to scale up its operations globally, focus on its innovative technology, and further improve the customer experience.
Andre Knoerchen, head of Munich Re's new tech and Internet of Things underwriting business, said, “The partnership between Roomer and Munich Re delivers a solution to one of the biggest challenges of the travel industry – cancellations.”
Gon Ben-David, chief executive officer and co-founder of Roomer, added, “We found at Munich Re an agile and open-minded team that understands our unique needs. I am convinced that now after giving flexibility to almost 150,000 travelers worldwide, this cooperation will enable Roomer to further expand its business globally. There are many more verticals within the travel industry that face similar unsolved challenges. We are excited to continue the partnership and to further explore opportunities to protect travelers and create value for the entire travel industry.”
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].