There are mergers, acquisitions, and quiet little deals that send a very loud message across the aviation and travel sector. CarTrawler’s acquisition of French insurtech darling Koala is precisely that sort of move: visionary, strategic, and somewhat daring, the kind of play that keeps competitors awake at night.
CarTrawler, already the world’s leading B2B platform for car hire and mobility solutions, has decided that wheels alone are insufficient. Now it’s eyeing the insurance game, and with Koala on board, it has a fighting chance to transform a once-dusty niche into a lively new revenue stream for airlines and travel brands.
CarTrawler is calling this a step towards building the industry’s most comprehensive ancillary platform. Judging by the industry’s obsession with ancillaries — the fees and extras that keep airlines in the black — the Irish company may well have struck gold.
Why Koala?
Koala, a Paris-based insurtech upstart, has made a name for itself with a product line that travellers want, a rarity in the insurance world. Forget complicated forms, caveats and endless phone calls. Koala is the outfit that brought us “Cancel for Any Reason” coverage and automatic trip disruption protection, products that remove the dreaded need to justify a claim.
As Koala boasts, more than 70 travel partners across 17 countries have already signed up to plug these offerings into their platforms. That alone tells us something: insurers can, in fact, delight customers when they choose clarity over fine print.
Their API-first technology means airlines, OTAs and mobility platforms can weave Koala’s solutions into their booking flows without weeks of painful IT integration. This is a godsend in an industry where development backlogs are longer than airport queues at Christmas.
For CarTrawler, Koala’s customer-first DNA is the missing piece. It complements its revenue-driven smarts, promising an even more lucrative blend of conversion-friendly airline products.
Ancillaries: The Airline Lifeline
To grasp the significance, it’s worth remembering just how much airlines now depend on ancillaries. According to CarTrawler’s own Yearbook of Ancillary Revenue, these extras — bags, meals, seat selection, insurance and the like — make up around 14.9% of airline revenue worldwide.
For some carriers, particularly the low-cost brigade, ancillaries are the oxygen that keeps them breathing. Any product that boosts attach rates and pushes those numbers higher is welcome. And insurance, once seen as the poor cousin in the ancillary family, is now showing its teeth.
Koala has reported a 34% year-on-year growth in “Cancel for Any Reason” sales in 2024 alone. That’s not just a trend — that’s a groundswell. Global forecasts suggest the travel insurance market will nearly double by 2030, climbing from USD 25.9 billion to USD 50.7 billion.
CarTrawler’s timing, then, could not be sharper.
The CEO’s Word
“The demand for B2B travel ancillary solutions continues to increase, with our travel partners asking us to add these solutions to our offering,” declared Peter O’Donovan, CEO of CarTrawler.
He’s not wrong. With partners like Qantas, American Airlines, Virgin Australia, easyJet, Uber, and more, the Dublin-headquartered company has already reached a sizeable slice of global travellers. Adding Koala into that ecosystem could be the final nudge needed to turn its Connect platform into the “Swiss Army knife” of ancillaries.
O’Donovan put it bluntly: “Koala’s product innovation and customer-centric approach make them a natural fit. Together, we’ll unlock more value for travel partners and travellers alike.”
A French Trailblazer
Let’s give Koala its due. The French firm isn’t just flogging standard insurance with a new logo. The company created the world’s first Parametric Flight Disruption Insurance, a clever bit of insurtech wizardry that triggers automatic payouts when a flight is delayed or cancelled: no arguments, no forms, no waiting.
It also invented “Modify for Any Reason,” a flexible product that lets travellers change their plans without losing their shirts. Unsurprisingly, brands that work with Koala often see insurance sales jump by 77% in the first year. Numbers like that seduce investors — and evidently, CarTrawler, too.
The Bigger Picture
We’re witnessing the slow but steady blurring of lines in the travel ecosystem. Platforms once pigeon-holed — car hire, flights, hotels — are increasingly morphing into full-stack ancillary powerhouses. For CarTrawler, adding insurance isn’t just a sideline; it’s a direct response to how travellers now think.
Today’s passenger doesn’t want a tangle of apps and policies. They want it all in one neat booking flow: flights, cars, insurance, the lot — and they want flexibility. CarTrawler and Koala together can offer exactly that.
Looking Ahead
CarTrawler insists this is only the beginning. O’Donovan hints at more verticals to come, and with American Express, United Airlines, and eDreams ODIGEO already in its stable, the runway looks wide open.
With over 2,200 suppliers across 50,000 locations in 150+ countries, CarTrawler is no stranger to scale. Now, by folding Koala’s flair into its platform, it’s betting big on insurance as the next chapter in its growth.
Whether the gamble pays off will depend on execution. However, if early signs are anything to go by, Koala’s “customer-first, API-ready” philosophy could be precisely the tonic this industry needs.
Final Word
CarTrawler’s swoop on Koala is more than just another deal. It’s a clear statement: ancillaries are no longer optional extras, they’re the future of airline profitability.
And if Koala can make insurance less of a headache and more of a helping hand, then CarTrawler’s partners and their passengers may well find themselves smiling to the departure gate.
By Sandra Jones
