Not exactly the greatest policy. But by the sounds of it they didn't even follow their policy.
Thanks for posting the Tiger denied boarding policy.
That policy would result in the passenger receiving an $85 travel voucher and being accommodated on the next available Tiger flight to the destination. So we really don't know if they were following this policy or not since the passenger chose to take another airline to get to his destination. There has been no mention of what "compensation" was offered by Tiger, either before or after the Facebook "rant".
Most LCC have a policy that they will not re-accommodate passengers on other airline's flights. Their low margins do not allow them to incur the additional costs associated with using other airlines, especially full-service airlines. So they normally only offer to accommodate on their next available flight. In this case, the next available flight was the following day and that was not acceptable to the passenger, so he chose to make his own alternate arrangements.
Now the rules imposed by some governments (like the EU rules) may force airlines to re-accommodate disrupted passengers on other airlines to get them to their destination within a certain window of time. But that does not apply to a Tiger flight from HBA to MEL. So if Tiger offered the passenger a seat on the next available Tiger flight (even being the following day) and a travel voucher for $85, then they have followed their policy. I make no comment as to whether this policy is appropriate in the circumstances.
So its important for all of us to know and understand the policy that should be applied if this ever happens to us. And if that policy is going to result in an unacceptable situation (such as arriving too late for a commitment) then we need to make our of decision about the value of the product being purchased verses the risk of something going wrong in the process. If the risk of finding the compensation unacceptable is too great, then make different arrangements (book an earlier flight, use an airline with a different policy etc). I will very rarely book the last flight of the day just in case something happens that means I don't get to my destination that day. If the consequences of being delayed, a flight being cancelled, or something like this denied boarding event happens, are too great, then I will take an earlier flight or choose a different airline that does have some options in case something goes wrong - even if it means paying a higher fare. Booking airfares is all about risk management, and that can only be achieved through experience and research.
I booked an airfare for my son to travel to Sydney for a family event. I evaluated the choices between using FF points, sale fares, flexible fares etc. In the end I chose to use a fare that was a good price but offered extremely limited flexibility and change/cancellation costs in excess of the cost of the fare. So when the event was cancelled during the week before, I found I had lost the fare (the cancellation cost was more than the value). I played the risk management game and lost on that occasion. But I knew the risks when I booked that fare, and accepted them, so when the unexpected happened and the event was cancelled, I realise I have no grounds for complaint (disappointment, yes - complaint, no). This obviously a different situation to Nat's experience, but the risk management is similar. In his case, the airline has a policy for denied boarding and that policy would never get him to Melbourne the same evening. So if getting there that evening is important, then there is a risk that needs to be considered and managed. What if the aircraft had a tech problem that grounded it for the night? What if the Captain or FO fell ill in Hobart? What was the "plan B"? Tiger's policy would have been to re-accommodate the passengers on the next available Tiger flight - the following day.
Part of my risk management strategy is ensuring I am never the last passenger to check-in. As Nat found out the hard way, being last to check-in significantly increased the risk of being bumped. Rightly or wrongly, and without consideration for compensation policies or moral responsibilities, that is the fact when it comes to airline travel. Experience is like the stern light of a ship - illuminating the path we have already traveled. I expect that Nat has now learned from his ship's stern light.