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“$150 to retain the value of a $300 ticket I had to cancel,” complains a reader, “is a complete rip-off.” I agree. What started as a reasonable policy—charging $25 to allow you to retain the value of a nonrefundable ticket you had to cancel—has morphed into still another gouge. The big lines now typically charge $150 to retain the value of a canceled domestic ticket and up to $250 for an international ticket. You still don’t get your money back; you just get to use what value is left after the fee toward a future ticket. Clearly, those fees bear no relation to an airline’s costs; they’re punitive and so high as to make a mockery of the “reusability” claim. My reader went on to ask, “Why can’t you pay a small fee up front to guarantee reusability?” The answer might surprise you: You can, but the fee is truly “small” and only available on one airline.
Southwest is unique in that it assesses no charge to exchange a ticket—an advantage it is pushing in the marketplace. Other big airlines routinely offer travel insurance from a leading independent travel insurance company on an opt-out basis when you buy a ticket online: Alaska, American, Continental, Delta, JetBlue, United, and US Airways use Access America, while Hawaiian, Frontier, and Virgin America use Travel Guard.
Both sets of policies are about the same. What you buy is a bundled travel insurance policy that includes conventional trip-cancellation insurance (TCI). As a side benefit, these policies also include trip interruption, emergency medical evacuation, and some delay and baggage coverages. And you get your money back, not just a credit. But TCI in conventional bundled packages has several downsides:
- Conventional TCI pays only if you cancel for a “covered” reason or in the event of a “named peril.” Those reasons normally include accident or sickness afflicting you, a travel companion, or non-traveling close relatives, as well as many (but not all) unforeseen problems in your destination area.
- Conventional TCI does not cover you if you cancel because of changed personal or business plans.
Conventional TCI, in a bundle, isn’t cheap. For example, to refund a $400 nonrefundable ticket, the insurance would cost around $35 (based on a quote from the Delta website for a four-day domestic trip). Optional policies for frequent-flyer award trips provide the same medical and delay coverages, but the TCI and interruption figures are much lower—enough to cover a mileage redeposit fee but too low to cover the cost of buying a return ticket if you can’t get an award seat.
Allegiant—an airline I frequently criticize for its fee policies—actually offers the best deal. “Trip Flex” allows you unlimited date, schedule, and itinerary changes with no fees. The cost is $11.50 for a flight or flight-and-car package or $37 for a flight-and-hotel package. You don’t get a cash refund, but you get to retain the ticket value. And there are no “covered reasons” limitations.
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Rather than accept the airline’s deals, you have two other options:
- You can buy “cancel for any reason” TCI through an independent travel insurance agency starting at around $45 for my test $400 trip (prices vary by age and trip duration). Clearly, this is the surest way to protect your ticket “investment.” You can change your plans without worrying about having to fuss with an insurance-company bean counter about the reason for your cancellation. But even for a middle-age person the cost is pretty stiff: more than 10 percent of the ticket value (and higher for a senior).
- Depending on your age and itinerary, buying a third-party conventional bundled policy with TCI from an independent agency can often duplicate the coverage and beat the price of an airline site’s policy, but probably not by much. You have to compare each trip.
Why don’t other lines copy Allegiant? Probably because they’re afraid they’d sell far fewer of their very expensive refundable tickets. So for now, if you’re likely to want to cancel, buying a cancel-for-any-reason TCI policy is probably a better bet than risking those huge cancellation fees.
You might also like:
- Travel Insurance: Tips for the New Year
- Spirit Introduces ‘Unintended Conquences’ Fee
Ed Perkins on Travel is copyright (c) 2012 Tribune Media Services, Inc.
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FAQs
Nonrefundable fares, on the other hand, cannot be returned for a full refund. Some nonrefundable fares can be canceled or changed for a partial refund in the form of an airline flight voucher, but rarely can you receive cash or credit card reimbursem*nt for a canceled nonrefundable fare.
Can you get a refund on a nonrefundable? ›
If you purchased a non-refundable ticket, in some cases, a cancellation fee will be deducted from the cost of your flight. Any remaining value will be provided as an eCredit that can be used towards the purchase of another ticket.
What are valid reasons to cancel a flight and get a refund? ›
Top Reasons Most People Cancel Trips
- Injury or Illness. Sickness and injury are the top reasons for cancelling a trip. ...
- Death. ...
- Natural Disaster. ...
- Acts of Terrorism/Evacuation. ...
- Financial Default of the Travel Company.
- Death or Hospitalization of Host.
- Residence Damage. ...
- Jury Duty or Military Deployment.
If the booking was made between 10 and 26 hours, it should be cancelled 8 hours prior to the flight departure time to avail your flight ticket cancellation refund. If the booking was made between 26 hours and 91 days, it should be cancelled 24 hours prior to the flight departure time.
What happens when you cancel a nonrefundable ticket? ›
Consistent with many airlines' policies to eliminate change fees, a lot of carriers will now let you cancel even "nonrefundable" tickets for flight credit. You won't get your cash back, but you'll receive credit for what you paid, which you can use to rebook your canceled trip or book a future trip.
How much does it cost to change a non-refundable ticket? ›
With a non-refundable ticket, you can change your flight when you pay a change fee of $0-$400, depending on your travel route, plus the price difference. As a reminder, Basic Economy tickets are non-refundable and non-changeable in most cases, but may be canceled for a partial eCredit.
Can you dispute something that is non-refundable? ›
You can't institute a no-refunds policy after a customer has bought something. The credit card company will honor the customer's chargeback request if the customer presents documentation that proves you did not have your refund policy in effect when the transaction occurred.
Does non-refundable mean non changeable? ›
Non-refundable tickets are usually a fraction of the cost of refundable tickets and most non-refundable airline tickets are reusable (with a change fee) in the case of a cancellation.
Is it better to cancel or change a flight? ›
If you purchased a round-trip flight and need to change the first leg to a different day, your best bet will likely be to pay the change fee and book a new flight. If you only need to change the return portion of a round trip, however, it may be cheaper to book a new one-way flight than to pay the cancellation fee.
What is a covered reason to cancel a flight? ›
Here are some examples: The unexpected death, sickness or injury of you, a travelling companion, or a family member. You need to attend the birth of a family member's child. Travel carrier cannot get you to your destination due to a natural disaster or severe weather.
Trip cancellation coverage: This policy can reimburse you for non-refundable, prepaid trip costs for trips canceled for reasons that are covered by your policy, such as the death of a family member or a medical emergency. Reimbursem*nts include airline tickets, hotel rooms and tours.
How do I get out of a flight cancellation fee? ›
A simple way to change or cancel a flight without paying a fee is to do so within 24 hours of booking. After this window, the next option is to wait to see if the airline makes a change to the flight — the departure time, the aircraft, etc. — which will automatically grant you a refund if you change or cancel.
How much money can you get back from a Cancelled flight? ›
If your flight is canceled, you'll be entitled to a full refund. If you'd rather be rebooked to your destination, you can also choose to accept another flight, travel credit or alternative transportation offered by the airline.
Does flights give refunds for cancelled? ›
RULES FOR FLIGHT CANCELLATIONS
If a flight gets cancelled, then the airline has to inform the passenger less than two weeks, but atleast 24 hours before the scheduled departure time. The passenger can then ask for a seat on an alternate flight or seek a full refund from the airline.
Do flights give full refunds? ›
You can get money back from airlines in case your flight gets cancelled, regardless of the reason. an airline must offer you a full flight refund for all flights within the same booking. an airline must find you a replacement flight so you can reach your final destination.
Can you make changes to a non-refundable airline ticket? ›
Extraordinary circ*mstances
There are some cases that an airline might deem eligible for free change or cancellation even on non-refundable tickets. These are generally in extraordinary circ*mstances, particularly in the case of a death in the family.
Do airlines refund unused tickets? ›
The base fare, also known as the “actual ticket price”, will only be repaid in full if the airline is able to resell your ticket and if permitted by the airline's terms and conditions. In such a case, up to 95% of the total ticket price can be refunded to the passenger.
Can non-refundable tickets be transferred? ›
That is what is known as NONREFUNDABLE. Get it? NONTRANSFERABLE means you have to use the ticket, no one else can. Sure, you can transfer the ticket to someone else, however, at the airport the ticket will be seized and the person presenting the ticket may be arrested for..
Can I cancel a non-refundable Delta ticket? ›
If you purchased a non-refundable ticket, you may cancel your ticket prior to departure and receive an eCredit if applicable. Basic Economy tickets are cancelable for a charge which is deducted from the original value of your ticket; remaining value will be issued as an eCredit.
