A travel insurance company in Australia, iTrek, brags about its ability to sell low-cost insurance by cutting out travel agents.
Sydney-based iTrek has taken a brash step forward with its business model by running a promotion called “The Travel Agent Is Dead.” Participants are to film and submit a 30-second TV commercial with that central theme.
All entries will be judged by industry film and advertising experts, and 10 finalists will be selected, said iTrek.
"We believe that the travel agents' days are well and truly numbered," iTrek says on its website. "A large percentage of their margins are made by 'bolting on' travel insurance products to customer's flight bookings.
"Some travel agents have been known to make margins of up to 50% on travel insurance policies. The time has come for the public to see that there is an alternative. By going online and taking your travel agent out of the equation completely. This 'alternative' could save you up to 50% on the costs."
According to iTrek’s website, the company is an agent of and underwritten by Chartis, the new name of the property-casualty insurance business that was spun off from AIG last summer.
TravelGuard, a company that relies on travel agents to sell its insurance products, is under the Chartis umbrella.