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LINES OF BUSINESS
Travel
2010 − Travel industry rides the waves
of the world’s ups and downs
2010 brought about an improved, if still
fragile, global economic situation that
reverberated through many sectors,
including travel, while other surprises
intheyear caused industry setbacks.
Growth prevails
2010 was another challenging year for
the travel industry. However, growth
prevailed. According to the World Tourism
Organisation, 935 million people travelled in
2010, representing a 7% increase over 2009.
Thenumber of realised air passengers in 2010
rose by +6.3%.
Setbacks in 2010
A combination of uncontrollable events and
economic burdens set back the travel industry
in 2010. In Q2, a volcano in Iceland erupted,
sending clouds of volcanic ash across Europe.
The ash disrupted air travel for weeks with
repercussions felt as far away as India and
China. Then winter hit early and peaked with
some of its worst snow and ice storms two
weeks before the December holidays. The
storms caused major disruptions at airports
throughout Europe and North America. Soaring
fuel prices and the sovereign debt crisis also
took a toll. Once again it’s very clear that the
travel industry is greatly impacted by the
instability of the global environment.
Everyyear the sector must cope with external
factors, whether they are natural, economical,
political, or health related.
Online leadership helps Allianz Global
Assistance prosper
Allianz Global Assistance’s continued growth
in the travel insurance sector is primarily the
result of our leadership position in online travel
insurance sales, due to the many partnerships
we have established with this sector’s leaders.
Of all the activities impacted by the growth
in e-commerce over the past 10 years, travel
has clearly benefited the most. Online tourism
represented 27% in 2008, 30% in 2009 and
33% in 2010 of total sales. It should continue
to grow in the next 5 years across all world
regions. In the most advanced markets, the
online market is now mature (USA, Northern
Europe countries, the UK…). Allianz Global
Assistance recognised very early on the huge
potential in the online business trend, and
the importance of riding the e-commerce
wave. In 2010, our online activity represented
more than 55% of our overall travel insurance
business!
Travel partners push for global solutions
In 2010 we saw several of our biggest travel
partners transition from the ambition to be
global, to the reality of actually having a true
global footprint. Relationships that were
once primarily regional and confined to one
continent expanded to worldwide dimensions.
Allianz Global Assistance continues to meet
this challenge by reinforcing its sales structure,
along with its global technology capabilities,
while simultaneously maintaining its local
roots, skills, knowledge and involvement.
Our strategy is intact
Our travel insurance strategy is part of the
overall group strategy, and is based on 4 main
areas of expertise:
1 - Customised products and solutions
Helping our client partners is what we do
best! Whether they’re a travel agent, broker,
tour operator or online travel specialist, our
goal is to provide them with innovative,
customised and always surprising solutions
+10.9%
in turnover
46%
of Allianz Global
Assistance
turnover
10–Allianz Global Assistance / Annual Report 2010