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Limitations of CFAR products in the market
Cancel for Any Reason (CFAR) products have gained attention for their promise of flexibility. However, their drawbacks make them a challenging choice for businesses and consumers.
CFAR products typically come with high premiums to offset potential losses. These inflated costs often deter customers, reducing overall conversions. Additionally, CFAR’s “no questions asked” refunds encourage dysfunctional consumer behaviour, where customers lack any compulsion to commit to their purchases.
For businesses, CFAR products lead to limited resale opportunities for cancelled tickets. With no time to return tickets to inventory, revenue losses increase, resulting in decreased profitability. This, coupled with the high claims ratio seen in CFAR models, has deterred many mainstream insurers from offering CFAR products altogether.
Protect Group’s data-backed stance on CFAR
Protect Group has conducted extensive market trials to assess the viability of CFAR offerings. These trials, including an 80% CFAR refund model, revealed significant limitations. Low conversion rates and decreased revenue underscored the inherent challenges of CFAR products.
Commercial viability remains a key issue. A sustainable CFAR model would require high premiums and impractical commission-sharing terms, neither of which align with Protect Group’s Partner-centric approach. Furthermore, CFAR offerings often attract consumers intending to claim, leading to higher loss ratios and negative impacts on profitability.
As a result, Protect Group firmly believes CFAR products are unsuitable for sustainable ticket protection. This stance is backed by data and reinforced by industry trends, where CFAR has failed to gain widespread adoption.
How Refund Protect solves challenges CFAR can’t
Refund Protect provides a smarter, more sustainable alternative to CFAR. Designed to balance consumer peace of mind with business profitability, Refund Protect ensures that only genuine claims are honoured. This creates a better experience for both customers and partners.
Unlike CFAR, Refund Protect fosters a commitment to purchase decisions. Customers retain the confidence of a refund for valid, unforeseen circumstances, but not for changing their minds. This model avoids dysfunctional consumer behaviour while maintaining high conversion rates through affordable pricing.
Additionally, Refund Protect addresses the resale issue by handling returned tickets efficiently. Our streamlined process ensures that tickets are sent back to inventory in time, so businesses can offset potential losses.
Key benefits for partners and customers
For Partners, Refund Protect offers stronger commercial terms and a new revenue stream. With its lower premium costs, the product attracts more customers while maintaining profitability. By integrating Refund Protect into their booking flows, partners can differentiate their offerings and build stronger relationships with their audience.
For customers, Refund Protect delivers peace of mind at a lower cost than CFAR products. Its clear refund policies ensure customers feel valued, leading to higher satisfaction and loyalty.
Leading the way in ticket protection innovation
Protect Group’s refusal to offer traditional CFAR products reflects its commitment to sustainable solutions. By prioritising genuine customer needs and partner success, Protect Group sets itself apart as a leader in the ancillary and ticket protection space.
Through data-backed insights, Protect Group highlights the flaws in competitors’ CFAR models and demonstrates why Refund Protect is a superior alternative. This proactive approach establishes Protect Group as a trusted voice in the industry, one that Partners can rely on for innovation and integrity.
Refund Protect isn’t just a better product; it’s a better solution. By addressing the limitations of CFAR and prioritising long-term value, Protect Group continues to redefine ticket protection, creating a win-win for businesses and customers alike.
Discover more about Refund Protect and our solutions.
