If there’s one thing consumers thought they could trust it’s that if an airline flight doesn’t operate they can get their money back. Many have refused and now Canada is backing up its airlines against consumers.
The problem for airlines is that this tactic (1) erodes what little trust consumers had, and (2) incentivizes customers not to buy airline tickets now for travel far in the future because they now know they might get stuck without travel or money.
Air travel isn’t going to open back up all at once, or evenly everywhere. It won’t be uniform even domestically, and it’ll happen in waves across the world. People will be afraid to fly. Some businesses will have gotten used to online meetings and won’t fly as much. The world of air travel is going to be very different as we (eventually) transition back into the air.
Creating a mechanism for the money provided to airlines to be paid back is better than not, however it’s important for politicians not to meddle in the industry, forcing airlines to make decisions to please legislative constituencies rather than customers.
I’ve had several readers ask about expiring Hyatt free nights. They’re offering reservation cancellation flexibility, postponing peak season award pricing and hotel category changes and have paused expiration of points through May 31.
Like many other programs they haven’t said anything about elite status for the year yet. And they haven’t spoken to free nights – I have one myself expiring April 2. Here’s what I learned.
The U.S. government can issue over $50 billion in loans and grants (and take non-voting equity positions in airlines in exchange for grants) under plans that have been sketched out so far. There’s also nearly $20 billion for airports and cargo airlines. It is not too late to stop this.
A roundup of the most important stories of the day. I keep you up to date on the most interesting writings I find on other sites – the latest news and tips.
One thing that many airlines have done to make refunds more difficult is removed the ability for travel agents to process refunds for their customers through computer reservations systems. The Amadeus system maintains a list of those airlines.
Hilton has come out with new accommodations for prepaid reservations, points expiration, free weekend night certificates and elite status. With customers largely not staying at hotels, Hilton is going to hang onto elites, extending everyone’s status. They’re extending the validity of everyone’s points and any credit card free weekend night certificates. And they’re extending flexible cancellation of prepaid hotel bookings by two months through the end of June.
A lot of people are becoming unemployed. To a credit card issuer that means late payments and eventually chargeoffs. The reason banks sometimes reduce credit lights, and tighten lending standards, in a down economy is because there is more repayment risk. This reduces their exposure to bad debt.
I’m still excited for the long term of rewards cards. Thanks to the government’s money printer go brrr right now the cost of credit to banks is unbelievably low.
Two AirAsia pilots climbed out the window of their plane on Friday when they arrived in Delhi. Video shows one of them taking luggage from the other. They had learned a passenger on board might be infected with the novel coronavirus – or at least was sneezing, which isn’t commonly a symptom of COVID-19. No one on board actually had the virus.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
