Easyjet + Mondial have launched a new insurance product called "Missed Flight" cover. Essentially, if you miss your flight, but are in a fit state to fly (i.e. have passport and not drunk) and turn up at the departure airport no more than 4 hours late, you get a seat on the next flight for free or a full refund. Cost is £7.50 per single flight or £9.50 for a return. No scaling of premium to allow for varying ticket prices. No proof needed - saying you overslept is a valid excuse. No exclusions. Not even any excess.
Thinking through all the possible scenarios, this seems too good to be true and a clever passenger could use this as part of a strategy when booking.
Wanna do a trip, flying home on an 8 pm flight ? Is the 8 pm flight home looking expensive, but the 4 pm flight is much cheaper ? Why not
1 - Book the cheaper 4 pm flight
2 - Pay for the insurance - no more than £9.50 for a round trip
3 - At 3 pm, check that flights for the 8 pm flight are still on sale - i.e. there is still space on the evening flight home
4 - "Accidentally" miss the afternoon flight
5 - Turn up at the departure airport at 7 pm and make a claim at the sales desk.
6 - Get on the 8 pm evening flight (which you always wanted) instead
Yes, there's a risk that the 8 pm flight home is full, but if you're willing to take the risk, it makes flying much cheaper (and trashes the yields for Easyjet !)
Alternatively:
Booked a weekend trip away, but decided you don't want to go any more ?
Paid for a non-refundable ticket because a refundable ticket cost much much more ?
Just turn up at the airport with your passport after the flight has departed but within 4 hours of scheduled departure, tell the sales desk you want a refund, and your ticket magically becomes refundable !
Why pay the extra for a changeable non-refundable Flexi ticket, when just £9.50 for a return gets you a refundable ticket ? Oh yeah, and those Easyjet yields might take a bit of a tumble again...
In technical terms, this seems to be insuring for "disinclination to travel" and potentially allows for someone to profit from insurance, rather than just being covered against loss.
Am wondering how many days it'll be before Easyjet pull this insurance product from sale or give it a significant modification, while citing technical issues...
Any of the pricing / yield gurus out there want to comment ?
Last edited by davidjohnson6; 13th Jul 2012 at 07:14.