Getting a refund for travel can be a hit-or-miss proposition
Cancellation policies vary with different companies
Cancellation policies can vary greatly during the coronavirus outbreak.
The coronavirus crisis is an opportunity for the travel industry to show how much it cares about you, its customer. But talk to travelers dealing with a coronavirus cancellation, and they’ll tell you it’s an opportunity the travel industry has missed – at least so far.
Gianna Fornesi is among them. She prepaid her rooms at the Hilton San Jose for a conference in March. This week, organizers canceled the event. Santa Clara County is a coronavirus “hot zone” and banned gatherings of more than 1,000 attendees. Hilton refused to refund the room, she says.
“Given the global pandemic that is happening right now, I think I should be entitled to a refund or a hotel credit at the very least,” says Fornesi, a marketing director from San Francisco.
Hilton has granted waivers of its refund policy for guests in China, South Korea, Italy and Saudi Arabia – but not San Jose. That means Hilton gets to keep her $588.
“That’s a lot of money for me to lose,” she says. “This is a moment where companies can take action to set new standards. But it’s clear Hilton values profits over people’s needs.”
Hilton did not respond to questions about Fornesi’s refund.
Coronavirus cancellation policies are all over the map
The travel industry’s refund policies change almost by the minute. Here’s what they look like now:
❚ Airlines waive their change fees for flights in March and April.
❚ Cruise lines offer credit for sailings until the end of spring.
❚ Hotels loosen their cancellation policies for certain areas affected by the coronavirus outbreak.
Though many companies have relaxed their refund rules, some have gone the other way. The industry’s coronavirus policies show how it really feels about you. It’s something to note for when you start traveling again.
The best and worst refund policies
Airline change policies are problematic. Air carriers first waived change fees for travelers buying new tickets, a move designed to encourage ticket sales. After intense pressure from passengers and Congress, the major carriers announced this week that they would allow travelers holding tickets to any destination for travel during March and April to change or cancel their flight without paying a change fee.
United Airlines’ attempted policy change was particularly troublesome. This month it quietly modified its rules for schedule changes. Under its old policy, if United changed your itinerary and couldn’t get you to your destination within two hours of the original flight, it would offer a full refund. Now, your itinerary must change by more than 25 hours. Anything less and you get a ticket credit valid for a year from the date of your initial reservation. United appears to have backtracked and now allows for refunds when your schedule changes “significantly.”
Ironically, many of the companies trying to hold on to your money may end up asking Congress for tax breaks. If they’re successful, then you’ll subsidize their new refund policies when you pay your taxes. Lucky you!
At the other end of the scale, some companies go above and beyond. Cruise lines such as Princess, which has had two ships quarantined since February, and Viking canceled their sailings for the next two months and offer full refunds. At Princess, all affected guests will have the option to transfer 100% of money paid to a future cruise of their choosing. The company said it will provide an additional “generous future cruise credit” to be used for cruise fare or onboard expenses. Viking offers customers the choice of a 125% voucher good for two years, and if it can’t be used in that window, a refund will be issued after it expires.
Airbnb’s policy is also a standout. It classifies a coronavirus cancellation as an extenuating circumstance. Anyone who can’t complete a trip because of official travel restrictions covered by the policy, medical or disease control duties, flight or ground transportation cancellation initiated by the provider because of coronavirus, or suspected or confirmed cases of coronavirus, can cancel and receive a full refund.
You get what you negotiate
When it comes to coronavirus cancellations, you get what you get – unless you negotiate for better terms. Travel companies want to keep your money, but you can fight an unfair policy.
That’s what Chelsea Henderson did when she tried to cancel a hotel stay at the Marriott Rivercenter in San Antonio this week. Her trip, like Fornesi’s, was supposed to be for a conference, but she decided to cancel. When she called the hotel, a representative cheerfully canceled her entire stay without telling her she’d have to pay a one-night penalty.
Henderson, a consultant from Washington, appealed to Marriott’s corporate office. “The woman I talked to there was sympathetic and said she thought I should be refunded, but they were letting the individual hotels make the call,” she says. “Still, she took my case, and I was eventually refunded.”
Since refund policies can change by the minute, there’s a lot of uncertainty – if not flexibility – in the customer service departments of the major airlines, cruise lines and hotels. Don’t take “no” for an answer. But definitely take names.
“Companies that tighten refund policies are only focusing on the short-term hits,” says Marcia Flicker, an associate professor of marketing at the Center for Positive Marketing at Fordham University. “Travel brands that have loosened or eliminated refund restrictions are earning consumer trust and building positive relationships with their customers. They are telling current and future customers that the people who use their services matter more than immediate profits.”
In short, the coronavirus pandemic has brought out the best – and the worst – in travel companies. Their refund policies, and the speed with which they process your refund, are proof. All you have to do is pay attention to their behavior. Remember who treated you well and who didn’t.