Growing Vacation Industry Fosters Demand for Integrated Support Services

NetworkNewsWire Editorial Coverage

NEW YORK, March 25, 2020 /PRNewswire/ -- As global tourism soars, integrated support services are increasingly important for both travelers and providers.

InsuraGuest Technologies Inc. (TSX.V: ISGI) (ISGI Profile) is a SaaS (Software-as-a-Service) company leading the way on insurtech integration, with a software platform that covers both insurance and the technology mechanisms to book that insurance in the hospitality industry. Expedia Group Inc. (NASDAQ:EXPE) makes bookings easier through platforms covering accommodation, transport and other aspects of travel. Booking Holdings Inc. (NASDAQ:BKNG) also supports bookings, providing diverse and innovative services to draw customers' attention. Many of the users of these sites end up at hotels run by Marriott International (NASDAQ:MAR), the world's third-largest hotel chain, or Hyatt Hotels Corporation (NYSE:H), both of which have been expanding their portfolios of large mainstream hotels and more unusual properties.

• The vacation rental market is valued at $87 billion.
• With billions of nights spent away from home every year, insurance is essential to cover accidents and the unexpected.
• Companies are working to provide integrated services, making vacation insurance an essential part of the process.

To view an infographic of this editorial, click here.

The Growing Vacation-Rental Market

The vacation-rental market is growing. Valued at $87 billion in 2020, the industry is expected to reach around $97 billion by 2023, as people make use of rentals to get away from their day-to-day lives. Even with COVID-19,  the U.S. vacation-rental market looks, for the most part, unscathed as most of the impact of cancellations and lower bookings are highly localized, with the vast majority of vacation-rental markets remaining stable. While this is, by its nature, an international industry, the United States has the largest part of the market, generating $18 billion in revenue and growing at an impressive rate.

Any industry creates a need for insurance, usually specialized to meet the needs of that market. While some vacation insurance currently exists, gaps exist in the coverage. These oversights leave holidaymakers and property owners financially vulnerable. And so the question arises, how can these gaps be covered?

Integrating Insurance and Technology

New challenges require new business models, and that's what InsuraGuest Technologies Inc. (TSX.V: ISGI) provides for vacation-rental insurance.

A true insurtech company, InsuraGuest provides the two essential parts designed to ensure insurance coverages for vacation rentals: the insurance itself and a reliable, easy way to access that insurance. With ISGI, the software and insurance come together, both provided by the company in a packaged offering that makes it easy to use.

That ease of use is vital. In 2018, more than 6.4 billion nights were spent away from home around the world. Though many of those stays were seasoned travelers in big-chain hotels with experienced staff and booking experts, others stays looked very different, including some individuals on their first trips staying in small rentals run by owners just getting themselves established. These novice travelers sometimes lack the expertise to navigate the vacation-rental market, or even to know what they're looking for.

These people rely on third parties to provide support and services. In the United States alone, an estimated 4.5 million second homes are managed by rental companies. Every day, travelers turn to agents to help them with the administration of holiday and vacation travel. InsuraGuest was established to provide a vital part of that vacation ecosystem.

Any player in the vacation industry faces the risk of liability in the event of guests injuring themselves. Additional features and facilities, which are often crucial to attracting and pleasing guests, often bring additional liability risks. For example, gym injuries are one of the most common accidents to take place in hotels. Without proper protection in place, the owner of a vacation property could be liable for a lawsuit or personal injury claim, even after taking every possible step to make things safe.

InsuraGuest's Hospitality Liability coverages insert a layer of protection, on a primary basis, should guests experience an accident or theft during their stay. ISGI helps takes the worry away, making traveling even more enjoyable and the running of vacation properties more financially secure.

The insurance provided is specialized coverages underwritten by the largest, best-rated insurance companies in the world. Policies cover accidental, in-room property damage; theft of personal property; accidental medical issues; and death or dismemberment. While no one wants to think about such terrible possibilities while planning a vacation, choosing a property that has InsuraGuest's coverages for these unforeseen events reduces the stress in the event of a serious accident while protecting everybody involved.

The number of vacation-rental users is steadily rising. From 77.3 million guests in 2019, the number is predicted to reach 843.4 million by 2023. That's the sort of staggering growth that any industry would be pleased with; it's also a reason to ensure that properties have the proper insurance services are rugged and accessible.

Changing the Vacation-Insurance Sector

Ensuring full coverage means addressing the gaps in the vacation-insurance market. No system provides perfect coverage, but by identifying the gaps and seeing the business opportunities these gaps provide, insurers can improve the situation for vacationers and rental providers alike.

InsuraGuest's approach is an ideal way to cover these gaps. Specialized Hospitality Insurance coverages are sold directly to the property owner, which can address claims from guests and room occupants the moment they sign in. The ISGI services transfer covered exposure to liability, removing a potentially significant burden from property owners, while lowering their claim ratio and risk profile.

Critically, this insurance also covers gaps in other products, such as personal property theft and accidental in-room damage. Such additions to the market remove strains and unpredictability from the sector as well.

In an increasingly complex world of competing and conflicting software, integration appears to be critical to making services accessible, and this integration could affect the way insurance companies develop over the coming years. If access to insurance can be integrated into property-management systems, then it becomes easier for rental owners and hotels to include the insurance as a benefit to their guests for staying at their properties. In the case of InsuraGuest, the software is already integrated with 71 different property-management systems, giving them access to millions of rooms around the world and making it easy for owners to connect existing software to the tools they already use.

But it's not just about the integration of different forms of software — it's also about integrating different services. Customers don't want to have to deal with a range of different administrative tasks just to take a vacation, and rental owners benefit from managing everything in one place. The integration of insurance and the software supporting it, as provided by companies such as InsuraGuest, helps relieve the administrative burden.

The benefit of insurance has always been as much about peace of mind as it is about the money involved. Certainty and security makes it easier for travelers to make lodging decisions, whether they're looking for business or vacation accommodations, and to enjoy the fruits of those decisions. Filling the gaps and simplifying the process of insurance improves the vacation experience for everyone involved.

Helping People Get Away

The growth of the travel industry has been a boon for a range of companies.

Initially founded as a division of Microsoft but now a company in its own right, Expedia Group Inc. (NASDAQ:EXPE) provides another form of software-based service. As an online travel shopping company, Expedia websites help travelers find hotels and transport as well as schedule activities to fill the time while they're away from home. Aggregator and comparison platforms have become a vital part of many industries, and Expedia fits into this mold. The company doesn't just show customers what options are available, it also makes booking easier and offers advice to help save money on travel. While the company has succeeded in part by predicting trends in travel, its real success has come in integrating existing elements of the travel booking experience, making vacation planning smoother for travelers and helping rental owners reach their market.

A global leader in online travel and related services, Booking Holdings Inc. (NASDAQ:BKNG) owns some big-name, customer-facing brands including Booking.com and Priceline. Available in over 40 languages in more than 230 countries, BKNG is truly an international company. Like most leading companies, Booking has maintained its market position through crowd-pleasing, customer-facing innovations. For example, its OpenTable brand now offers diners the chance to make exclusive bookings in hard-to-get restaurants. One of its most recent additions is KAYAK's trip builder tool, which makes it easier to plan multicity travel, again benefiting customers through a smooth, integrated experience.

The third-largest hotel chain in the world, Marriott International (NASDAQ:MAR) operates more than 7,000 properties under 30 brands. The company has benefited from the growth in the travel industry, steadily increasing its global reach with recent additions such as the first purpose-built Marriott hotel in South Africa. While consistency has played a large part in the company's success, Marriott has also benefited from interest in the unusual, with its Tribute Portfolio of independent hotels such as the recently opened Gekko House in Frankfurt. Integrating the unique and the familiar under one brand makes it easier for Marriott to maximize its customer base and for customers to find and book the hotel they are looking for.

Another global hotel chain, Hyatt Hotels Corporation (NYSE:H) operates more than 900 hotel, all-inclusive and wellness resort properties spread across 65 countries. The company is known for its large hotels, such as the recently announced new Grand Hyatt Miami Beach, an 800-room hotel near a major convention center, due to open in 2023. Like Marriott, Hyatt also offers more unusual experiences, such as a newly opened hotel in Charlottesville that combines a comfortable stay with modern art.

With so many hotel and vacation-rental options springing up, integrated services such as booking and insurance are going to become more important than ever.

For more information about InsuraGuest Technologies, please visit InsuraGuest Technologies, Inc. (TSX.V: ISGI).

About NetworkNewsWire

NetworkNewsWire ("NNW") is a financial news and content distribution company, one of 40+ brands within the InvestorBrandNetwork ("IBN"), that provides: (1) access to a network of wire solutions via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible; (2) article and editorial syndication to 5,000+ news outlets; (3) enhanced press release solutions to ensure maximum impact; (4) social media distribution via IBN millions of social media followers; and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience comprising investors, consumers, journalists and the general public. By cutting through the overload of information in today's market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.

To receive SMS text alerts from NetworkNewsWire, text "STOCKS" to 77948 (U.S. Mobile Phones Only)

For more information, please visit: https://www.NetworkNewsWire.com

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer

NetworkNewsWire is part of the InvestorBrandNetwork

DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with NNW or any company mentioned herein. The commentary, views and opinions expressed in this release by NNW are solely those of NNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW and FNM for any investment decisions by their readers or subscribers. NNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment.

NNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.  The forward-looking statements in this release are made as of the date hereof and NNW and FNM undertake no obligation to update such statements.

Corporate Communications Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com  
+1-212-418-1217 Office
Editor@NetworkNewsWire.com   

Media Contact:
FN Media Group, LLC
NNW@FinancialNewsMedia.com  
+1-(954)345-0611