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Introduction: Data-driven protection is reshaping the checkout experience
In an age where almost every consumer touchpoint is personalised, from streaming recommendations to targeted ads, it’s no surprise that booking protection is evolving too. What was once a one-size-fits-all add-on is now becoming smarter, more contextual and more customer-centric.
At Protect Group, we’ve seen how AI and behavioural data can transform the way refund offers are presented and priced. But the bigger story here isn’t just about technology. It’s about what this shift reveals: how people book, when they upgrade and what they really value.
This blog explores the growing role of AI in ancillary protection, what we’ve learned from millions of booking journeys, and why personalised refund offers are a window into modern consumer behaviour.
The problem with one-size-fits-all protection
Traditional refund or cancellation options have often been rigid:
- A fixed price for all bookings.
- Little or no differentiation between customer types.
- Minimal optimisation based on timing, seasonality, or vertical.
This creates friction. Some customers are overcharged. Others are put off entirely. The result: low conversion, lost trust and missed revenue.
But when AI enters the picture, refund protection can be tailored to the product, journey and the person behind the booking.
What Smart Pricing looks like in action
Personalised refund protection isn’t about guesswork. It’s about harnessing data to make smarter, fairer offers. Here’s how it works in practice:
- Booking data is analysed in real-time: Things like basket value, travel dates, time before departure, device type, or even the time of day can all be used to determine risk and intent.
- Smart Pricing generates price points: A €15 train ticket doesn’t need the same refund fee as a €400 hotel stay. Smart Pricing ensures customers see relevant, affordable options.
- Conversion data is looped back into the model: This creates a continuous learning cycle that improves offer accuracy over time.
The result is a better customer experience and a better commercial model.
What the data tells us about customer behaviour
When booking protection is offered using Smart Pricing, you start to notice patterns in pricing tolerance and emotional intent. Here are some insights drawn from anonymised booking data across verticals:
1. Timing is everything
Customers booking well in advance are significantly more likely to add refund protection. It makes sense: the longer the gap between purchase and experience, the more chance plans might change.
💡 Insight: Refund offers should be stronger for early bookers, not just because they’re higher risk, but because they’re more willing to pay for peace of mind.
2. Lower-value bookings still drive uptake
You might assume that only high-ticket items see refund upgrades. But in many cases, customers are more likely to add protection on low-cost items. A €10 refund fee on a €70 ticket feels worth it.
💡 Insight: It’s not always about price; it’s about perceived value and convenience.
3. Mobile users convert differently
Mobile users are more impulsive, but also more cautious. Our data shows mobile users convert over 15% lower than desktop users.
💡 Insight: Device type should factor into refund offer design, UX, and copy.
4. Weekday shoppers are more emotional buyers
Bookings made over the weekend have lower refund protection uptake. These purchases are often tied to leisure or passion-driven activities (concerts, trips, family events), where protection is a form of an emotional purchase.
💡 Insight: Context matters. Smart refund systems should adjust to the intent behind the booking, not just the logistics.
Beyond price: Personalisation in presentation
AI helps with more than pricing. It also improves how refund protection is framed. Language, visuals, and placement in the booking flow can all be optimised:
- A/B testing helps identify what copy resonates best with different demographics.
- Geo-specific language can tailor offers to local norms or regulations.
- Behaviour-based nudges (e.g., “Most travellers add refund protection”) can increase uptake without being pushy.
The message is clear: if refund protection appears to be designed for you, you're more likely to trust it and pay for it.
Ethical AI: Balancing revenue with fairness
While personalisation can drive uptake and increase revenue, there’s a responsibility to ensure fairness. Smart refund systems should:
- Avoid penalising vulnerable customers with inflated pricing.
- Remain transparent about what is and isn’t covered.
- Prioritise clarity over complexity.
Done right, AI-powered refund protection can be ethical, accessible, and commercially effective.
What this means for the industry
Across verticals, from airlines and OTAs to ticketing and hospitality, there’s a growing push to integrate smarter protection options into the booking flow. And as AI becomes more embedded, we’ll see:
- Better conversion at checkout.
- More sustainable ancillary revenue models.
- Higher customer satisfaction scores.
- Deeper insights into what drives real booking intent.
Smart refund solutions prevent churn, recover costs and help businesses understand their customers better. That insight is invaluable.
The protection customers didn’t know they needed
AI-powered refund upgrades may seem like a small touch in the booking experience, but they offer something profound: choice. And choice builds trust.
Customers no longer want to buy protection blindly. They want to feel in control, to see value, and to know that their booking is protected in a way that makes sense to them. With personalised pricing and intelligent UX, that becomes possible.
The future of ancillary protection isn’t static. It’s smart, responsive, and human-centred. And the businesses that embrace this shift won’t just offer better refunds; they’ll offer better experiences.
