Has add-on Insurance moved from Motor to the Travel Industry?

Over the last few weeks, I’ve heard advertisement after advertisement about price in guarantee whereby you pay a small fee, in exchange for a payment of the difference between the price you paid for a fare and a discounted fare should the price go down.

To me, this is a form of insurance and if it is not insurance, it is gambling. Either way, it would be or should be governed by legislation.

Leisure travel is deemed to be a retail product, but when I looked on one of the two firms that are advertising this feature, there is no mention of an Australian Financial Services Licence, or a product disclosure statement.

As someone who travels regularly, what I find is that often the fares go up closer to the time you travel, and I therefore wonder how many times there will be a payout? Having said this, I do appreciate that from time to time airlines do have a sale. I also notice that the maximum you can claim is $1,000.

As I say, to me this looks like another form of add-on insurance and I wonder how long until this product is looked at in the Royal Commission.