There’s no denying that we are living in unprecedented times right now. There’s a lot of uncertainty, people are scared, and one of the industries hit hardest is the travel industry.
Airline and hotel companies are hurting. Between mandated cancellations/closures, huge reductions in bookings, and never-ending holds to get through to a customer service agent, it’s safe to say that things are pretty far from the norm. So, what should you expect over the next couple of months and what if you have reservations booked already?
Well, it’s tough to predict exactly what will happen, but it’s hard to imagine that things won’t come back eventually. While we can’t say exactly when that will transpire, there are some measures you can take now to handle your current and future bookings to put yourself in the best possible position.
Handling Current Reservations and Trips
If you’re a frequent traveler, there’s a good chance that you have one or more trips booked within the next 45 days and you may be unsure whether you’ll be able to travel. All international routes are now closed and there are even concerns about domestic travel being cancelled or reduced. It seems that we currently have no choice but to “wait and see”.
In this time, your best bet is to prepare yourself for the likelihood that your travel won’t happen and use the following three tips to mitigate your situation:
Expect Few Cash Refunds
With airlines and hotel chains hurting for cash the way that they are, it’s unlikely that you’ll be able to receive a cash refund on any bookings you have made. Instead, most airlines are issuing vouchers as part of their change/cancellation policies. There are certainly some cases that could generate a true refund such as if you booked with points but knowing this going in could help temper your expectations.
Most refund cases are circumstantial and revolve around the conditions of your ticket, when it was booked, and whether you initiated the cancellation, or if the airline did. If you booked a ticket with cash, as opposed to points, then you’ll want to investigate the airline/hotel’s policy prior to reaching out so you can plead your best case. Additionally, remember that kindness goes a long way when speaking with an agent.
Wait To Cancel/Rebook Because You’ll Have More Options
As explained above, your options for receiving compensation for cancelled reservations are based heavily on the circumstances regarding the request. For example, if the airline cancels your flight instead of you voluntarily cancelling it, you are in a better position to get a refund as opposed to a voucher. This is because the airline has the responsibility of making it right due to their choice of action, not yours.
With this in mind, you should wait until the final 48-72 hours before cancelling or rebooking your reservations to see if the airline/hotel will take first action. It is highly likely that they will given how things are shaking out right now. Not to mention, that most airlines are encouraging customers with plans more than 72 hours out to wait to call until their trip is closer since the customer service lines are very busy.
If You Have To Rebook, Push It As Far Out As Possible
Depending on how you booked your ticket or the terms of your booking, you may have no other choice but to rebook at a later date. Since it is very difficult to project the future right now, I recommend rebooking at the latest possible date. This will ensure a better chance of better timing and give you a longer runway to adjust your booking down the road.
Pushing your booking way back can also lead to some unexpected positive outcomes. For example, one of my clients had previously booked a trip for this week using a Delta Companion Pass. These Companion Passes clearly state in their terms that in the event of a cancellation there will be no refund. However, by trying to rebook further out than Delta’s system could handle (more than 311 days), the agent was forced to re-instate the Companion Pass for future use AND extend its expiration date.
Booking Future Travel
Right now, booking future travel may seem quite appealing due to lowered rates, increased award availability, and many people now holding travel waivers which equates to stored cash. However, there is no good data to suggest how long flight schedules could be altered or when it may be safe to fly again.
It doesn’t really matter how good the deals are if you will have to cancel your booking anyway. Not to mention, you might have to tie up valuable funds that you may need right now. So, you should proceed with caution if you are considering booking something soon.
Here are some recommendations to consider if you’re tempted to pull the trigger on traveling in the next couple months:
Booking With Points Is Your Safest Option
With the current uncertainty and great rates/availability we are seeing in travel, booking your reservations with points is clearly the best move. Almost all loyalty programs you’ll be able to book through will allow you to have your points refunded to your account almost immediately. While some may have previously enforced a fee for cancelling a point booking, most airlines and hotels have waived this requirement right now which will reduce your potential liability ten-fold. That means if plans change or this hasn’t blown over yet, you will not have lost anything.
Fair warning, this does not apply to point bookings through the Chase or Amex travel portal. At this time, you should only book using points directly with an airline or hotel. That means you’ll have to already have them in your account or transfer them from a credit card first. Just remember, once you transfer your points to an airline/hotel loyalty program you can’t send them back to your credit card account.
Plan Your Dates For Quarter 3 Or Later
As things continue to develop with COVID-19, it is quite likely that we won’t see travel begin to resume normally until at least the fall. Seeing as how that’s the best-case scenario, I wouldn’t recommend expecting to take a serious trip until the third quarter or later.
Ideally, you’ll want to avoid booking anything until the winter or even next year. Instead, take this time to research new possible future destinations and activities.
Know your cancellation/rebooking options
If you want to book travel and you don’t plan to use points, then you absolutely MUST make sure you are aware of the terms/conditions to cancel or change your reservations. The last thing you want is to end up in situation where you may lose your money or experience serious restrictions.
Many airlines are offering fee-free changes right now, but don’t forget that you can also cancel any plane ticket within 24 hours and receive a full refund as well.
Conclusion
COVID-19 has really put travel and society at large into quite the tailspin. With all the uncertainty right now, you need to know how to handle your current reservations as well as how to proceed with making future bookings. This is one of those times where it really pays of to use points and miles to protect your trips and also be an informed consumer.
