Weatherbill have struck a deal with another holiday company to provide weather insurance to their customers.
Sunquest Vacations, a Canadian travel company, are offering a policy called RainCheck which acts as a rainfall protection guarantee by offering another trip to travelers with the policy who experience rainfall of half an inch for half the days of their holiday or more. The rainfall is measured at the destination airport. Affected travelers will get a voucher to the value of their holiday to spend with Sunquest on a future holiday.
The policy can only be bought for holidays to certain beach destinations and the first 10,000 people who book a qualifying holiday will receive the guarantee for free, after which it will cost $39.95 per person. That seems a small price to pay for this kind of cover so I’m sure it will be snapped up by consumers.
Weatherbill report the rainfall accumulation and will have structured the weather derivatives which provide the back-up to this deal.
The deal launches for Sunquest customers on 15th November.
The travel industry is proving a hot target for weather risk management firms. Holiday purchases are an emotive experience for consumers desperate to make the most of their short time off work. Providing weather risk protection through innovative, marketing lead deals such as this is going to create a valuable revenue stream for companies such as Weatherbill.
Details on similar deals struck by Weatherbill can be found here, and here.
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