Tag Archives for change fees.
Someone buying a basic economy ticket far in advance, and cancelling travel six months later, will literally receive no credit at all. The validity of the credit is based on when you buy the ticket, not when you cancel travel and get a credit.
I’m looking at changing an American Airlines business class ticket. This is not a cheap ticket. It’s well over $3,000 one way. American’s website says it’s possible to do what I want.
United Airlines’ Super Bowl ad with Kyle Chandler promotes “No Change Fees,” but is misleading about basic economy and how long you can use your travel credits when you cancel a trip. However the broader industry shift to dropping change fees on most fares has meant ticket changes that would have cost customers $10 billion to make.
United marketed the end of change fees as permanent, but in the airline industry permanent means for now, until we change our mind. It appears they’re experimenting with bringing back change fees.
When change fees were $200, a lot of customers didn’t bother using their credits. You might think that’s better for an airline but it’s not. The customer probably resented the airline they gave money to and got nothing in return (other than the right to fly on the itinerary they purchased – but that’s not usually how the customer sees it).
There’s the obvious way in which eliminating change fees fosters loyalty, and a less obvious way.
U.S. airlines began permanently eliminating change fees during the pandemic, starting with United Airlines though others quickly followed suit.
You can expect many international fares for trips originating outside the United States to come with change fees.
A JetBlue passenger learned he was exposed to Covid-19 and was supposed to fly the next day. Many airlines have dropped change fees from some fares, but this passenger was on a ‘Basic’ fare. He called JetBlue to find out what to do. He had taken a Covid-19 test, but wouldn’t get the results before he was supposed to fly.
He asked to reschedule his trip a couple of weeks into the future. He was told he’d have to pay a difference in fare and also a $100 change fee. JetBlue wouldn’t waive the change fee without presentation of a positive test.
People flying sick has been a problem for a long time. Some of that is because of airline policies – it’s costly to change your plans, and a doctor’s note won’t even help you. Much of it is more broadly cultural. We expect people to ‘tough it out’ and colleagues don’t want us to ‘let them down’.
Before the pandemic the CDC actually recommended foregoing travel if you had a fever over 100 degrees and other symptoms, but a fever alone wasn’t reason to cancel a trip in their medical opinion. And about half of people said they’d fly even if they had the flu. That really needs to change.
United Airlines CEO Scott Kirby shared that in 1998 he was a Vice President at America West and a single conversation changed his view about change fees, and he’s wanted to eliminate them ever since. It took until August 2020 to do it and then American, Delta, Alaska and JetBlue all followed.
The interesting part of the story isn’t the golf game that game him the epiphany, it’s why it took 22 years for this change to happen.
Nine years ago Delta started requiring all changes or cancellations of award travel be made at least 72 hours prior to departure. If you had a last minute change of plans, you’d have to forfeit your ticket and buy a new one. If better award space opened up close to departure, you were out of luck.
Delta has finally dropped the 72 hour requirement to change or cancel an award.
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 »
