The "Cooling Off" Period When Purchasing Airline Tickets

By Mike Grasso

www.inFLIGHTout.com

Sale airfares come and go within a few days, while unadvertised drops in fares usually last just a matter of hours. Take some relatively recent examples such as Los Angeles to Fiji for a few hundred bucks, and San Francisco to upstate New York for $2 bucks. One minute you see them, next minute - poof, fare be gone. You're craving a vacation and the "deal of the century" is right before your eyes, but you're not sure how your significant other & work will feel about you taking more time away. How do you break free of your ambivalence to book?

While I don't have the perfect answer to that question, but perhaps more time to think it over will help! Most airlines offer some form of a "cooling off" period. They don't officially call it that, but essentially it allows you to purchase a ticket on their website and then later decide (usually within 24 hours) to cancel and receive a full refund, giving you plenty of time to chat up the S.O and Boss. This policy can can also be helpful if, for example, after booking you realized you selected the wrong date of departure, giving you an opportunity to make the correction at no charge.

A variation to the refund scenario is a 24-hour hold policy, whereby after you build a reservation on the airline website, you can place it on hold for up to 24-hours. Airlines offer a refund or hold - not both. Below I've outlined and linked the policies of major U.S. carriers. These policies are subject to change, and may not apply to every specific scenario, but do provide a general rule to follow when booking with the different airlines.

Southwest Airlines: (no link) 24 hour cancellation policy. Beyond 24 hours, Southwest does not charge a change fee, allowing you to hold as travel credit up to a year from date of purchase.

Continental Airlines: 24-hour cancellation policy

U.S Airways: 24-hour HOLD & cancellation policy

Virgin America: 24-hour cancellation policy

Delta Airlines: Cancellation until midnight the next day.

United Airlines: 24-hour cancellation policy

American Airlines: 24-hour HOLD policy.

United Drops Complimentary Refares

A long-standing benefit for frequent United Airlines travelers was the ability to, at no cost, refare ticket prices in the event the airfare drops after the initial purchase. With no notice to customers, United ended this benefit on March 20, 2009. The policy previous allowed customers to monitor their existing reservations, and if they find the fare dropped at any point prior to travel, they could call United and ask for a travel credit for the difference in price. There was no charge for this benefit. Now, United slaps on a $150 "administrative fee" for this service. The policy is effective for tickets purchased from March 20th onward; if you have tickets purchased before this date, and not yet flown, you may continue to refare these at no charge.

As a frequent beneficiary of this service, I have mixed feelings of the recent change. From a business perspective, few companies let you purchase a product then return it at any point up to a year later should the price go down, which is effectively what United was allowing customers to do. It was a generous benefit indeed! But I question how many people even knew about this policy - it was certainly never anything United marketed itself on. From a travelers perspective, Southwest Airlines again stands apart from United and many other airlines which charge for refaring, in that they do not charge to reprice an airline ticket if the fare drops. So if you were going to purchase a ticket between San Francisco and Orlando, for example, and the cheapest tickets were $300 on Southwest and $275 on United, you could have confidence in your Southwest ticket purchase that if the airline decided to have a sale, you could reap the benefits of the lower price. On United, you are stuck with that higher fare (unless you pay the new $150 fee), even if they drop their prices at a lower date.

Don't get me wrong, there are many great reasons to fly United Airlines. But based on this recent policy change, there is now one less reason to consider them a preferred carrier.

Frontier Modifies Same-Day Flight Change Rule

Effective immediately, Frontier Airlines will charge a flat $75 fee for same-day confirmed changes. Previously, customers were charged the difference between their previously purchased ticket price and a new one.  

"We realize how important it is for our customers to have the flexibility to change their flight on the same day of travel. This new flat fee should make same-day confirmed changes convenient and accessible to any customer who needs it," said Frontier President and CEO Sean Menke, in a press release. 

Customers wishing to make a same-day change to their travel plans must submit the request in-person at the airport, and is subject to space availability. Requests made prior to day of travel will incur the existing $150 change fee. 

Summit members are exempt from the $75 same-day change fee. 

Frontier Airlines To Charge Fee for "Free Ticket"

Award redemption fee part of a package of changes announced
In a press release today, Denver-based Frontier airlines announced they will institute a $25 non-refundable redemption fee for travelers booking a free flight using Frontier EarlyReturns miles. Previously, members of their frequent flier program could redeem miles without being subjected to this fee.

Frontier also announced a 5,000-15,000 across the board increase in miles needed for a free ticket. Previously known as one of the best redemption options in the industry, 15,000 miles for a free, capacity controlled domestic ticket will now climb to 20,000 miles; still a relative bargain.

Other changes announced in the press release include adding a $75 fee for close-in redemption's - whereby travelers book award travel within 14 days of travel, and $75 bucks for redepositing miles for an unused award travel booking.

"We have always been incredibly proud of our EarlyReturns program, which offers one of the lowest redemption levels in the industry," said Frontier Vice President of Marketing, Sales and Distribution, Jim Young. "Unfortunately, with oil still nearly 50% higher than just six months ago, we had to review the current structure and revise elements that will afford our ability to remain both customer friendly and cost conscious. Even with the new fees and redemption levels, we still offer one of the most competitive programs in the industry."

The changes are effective September 15th. Some fees are waived for Frontier elite members.

Northwest Institutes 'Service Fee' On Award Travel

One of several new/adjusted fees and personnel reductions announced by the airline
Just two weeks after Delta Airlines announced they would slap a fuel surcharge on all award redemption's, Northwest Airlines jumped on board and confirmed they too will institute a similar fee.

Described in a Northwest press release as a temporary "service fee" to offset fuel costs, passengers redeeming Northwest Worldperks miles will soon pay a fuel surcharge ranging from $25 for domestic travel, all the way up to $100 for trans-Pacific flights. The fee will be charged for ticketed itineraries beginning September 15th.

That's not all. Changing your itinerary will cost extra too. Beginning today, changes to non-refundable domestic tickets will increase $50 to $150. Changes to International itineraries will be hiked by as much as $150 more than present fees, depending on class of service and other restrictions.

The airline is matching several other carriers $15 first checked bag fee for tickets being sold as early as July 10th. No more checking your bags in for free.

Domestic Airline Fee Chart

Rick Seaney from FareCompare has compiled a comprehensive list of fees sorted by each domestic airline. As I've talked about extensively here, there have been many fee increases over the past several months, as well as a few circumstances where the airlines have instituted a new fee for services previously free. Kudos to FareCompare for providing this information to the traveling public. Click here for the list.

United Increases Fees for Award Travel

According to an update on the United website, higher fees will be incurred when making or changing award travel reservations with United Airlines.

• Change fee of $150 applies for changing the routing or destination of an existing ticket. (Originally $100 fee)


• $150 fee if you decide to cancel your ticket and redeposit miles. (Originally $100)


• $25 fee for booking award travel with United Reservations phone reps, such as when booking with United partners. (Originally $15)

Additionally, the "last minute travel" processing fees policy has changed. You will now pay a fee of $75 for booking within 3 weeks, or $100 for booking within 1 week of your requested departure date. Previously the airline did not penalize you for booking travel 2 weeks or more in advance.

These new changes go into effect on May 15th, 2008. Tickets booked prior to this retain the original rules and fee structure. Click here for more information.

United Airlines Increases Change Fee

By Mike Grasso

In what could result in a domino effect among other mainline carriers, United Airlines has raised change fees for non-award tickets to $150.00. The change appears to be effective immediately.

The news was initially mentioned on flyertalk, and although United has not made a public announcement of the increase, I just confirmed the change in the q&a section of the ual website.

Most mainline carriers, including United, charged no more than $100 (plus any applicable fare change) for making changes to a reservation. With the increase, United is making a bold move, one likely to upset business & leisure travelers worldwide.

But, in February United announced they would pioneer a special $25 fee for checking in a second bag, and despite grumbles from flyers, within weeks most of the larger U.S-based airlines announced a matching the fee. Here, they were successful.

In addition to increasing change fees, in the coming months I expect many airlines to find other creative ways to charge passengers, far beyond the price of the ticket. As fuel costs rise to an all-time high, the industry must find solutions to offset the higher cost of flying planes.