Farecast, the flight price prediction engine, announced today that they are testing a new insurance product called Fare Guard. The idea is that you lock in a price for a flight for one week (for a fee) and if the price goes up, Farecast pays you the difference.
Farecast is an interesting product. I love data and trends like the next guy. A lot of what Farecast is modeling is stuff that I’d read in Peter Greenburg’s Travel Detective book, although most of his advice was anecdotal. Farecast took that advice and backed it up with tons of data.
With Fare Guard, Farecast becomes a remarkable product. For Farecast to put their money where their mouth is adds a lot of validity behind their claim of prediction accuracy. Additionally, they are creating a new revenue streams by adding this insurance option.
Even if few people take them up on the offer of insurance, Farecast seems more reliable than ever. Now, if we could just talk Yahoo! Maps and Zillow into doing this, that would be truly remarkable.