The Rise of Immersive Hospitality Experiences
The hospitality industry is witnessing a surge in unique venues such as floating hotels, with a 120-room floating hotel set to open in Cardiff Bay. This trend follows similar developments in London and Edinburgh. According to a 2025 report, 44% of tourists now seek immersive experiences, including adventure tourism, cultural activities, and wellness retreats. McKinsey’s 2024 survey data supports this trend, showing that travelers prioritize experiences when selecting destinations.
Insurance Challenges for Unique Venues
Angela Irvine, ACII, sales director at Bletchley, emphasizes the need for careful risk assessment for these unconventional venues. “We have to understand all the risk assessments and the materials and what the exposures are likely to be,” she said. Insuring such venues requires a nuanced approach, considering both standard hospitality risks like slips and falls, and unique risks associated with the venue’s specific characteristics.
Considerations for Insurance Brokers
Brokers must view risk through the lens of the experience type when insuring these venues. Irvine notes that standard insurance may not always be applicable, and specialist markets may be required. “I think there’s not always going to be an appetite for most insurers. So you’re probably going to have to look at specialist markets,” she said. Brokers should be involved early in the project planning stage to facilitate better risk management.
Mitigating Risks in Floating Hotels
Floating hotels present specific challenges, including weather and sea conditions, stability and structural integrity, and limited emergency response access. To mitigate these risks, measures such as early warning weather systems, regular inspections, and onboard emergency responders can be implemented. Other risks include environmental impact, guest safety, logistical challenges, and cybersecurity threats. Effective mitigation strategies are crucial to managing these risks.
The Broker’s Role in Risk Prevention
Irvine stresses the importance of brokers being involved early in the project development process. “I think, given the complexity, quite often, what the underwriter will do is bring a risk surveyor on board early on in the process,” she explained. Early involvement allows for better risk assessment and mitigation, ultimately making the venue a more insurable risk.
Conclusion
The growth of immersive hospitality experiences presents both opportunities and challenges for insurers. By understanding the unique risks associated with these venues and working closely with brokers and underwriters, the industry can develop effective risk management strategies to support this evolving sector.
