Roomer Travel (Roomer) is an Israeli / US-based start-up that has developed a marketplace for reselling and booking non-refundable hotel rooms. Based on this experience, Roomer has identified the traveler's need for more flexibility. The introduction of Flex provides travelers the ability to change their travel plans without risking the whole booking value. With Flex, travelers can cancel their booking, up to 24 hours before check-in and get a refund, no questions asked.
This innovative solution is based on a unique machine learning algorithm which evaluates and dynamically prices every single protection request from OTA partners in real-time considering the reselling probability. The artificial intelligence-driven approach allows Roomer to consider additional parameters, which until today have not been accounted for at the time of booking.
Munich Re is addressing challenges and enabling growth
After analyzing the risks and challenges, Munich Re has developed an insurance solution 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. This insurance is underwritten by a primary insurance carrier of Munich Re. With the insurance solution in place, Roomer is now able to scale up their operations globally, focus on their innovative technology and further improve the customer experience.
Andre Knoerchen, Head of Munich Re's New Tech and IoT Underwriting, said of the forward-looking cooperation: "The partnership between Roomer and Munich Re delivers a solution to one of the biggest challenges of the travel industry - cancellations."
Gon Ben-David, CEO 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."