If you’re a frequent business traveler, we’re sure you’ve got a story (or two… or multiple…) about travel disruptions you’ve dealt with on the road.
Maybe your baggage was lost on a connecting flight… Or you’ve experienced an hours-long delay… Or worse – you ended up stranded in the airport due to an unforeseen flight cancellation.
No matter what your story (or stories) are, we know just how frustrating those kinds of obstacles can be while travelling.
(Trust us, #teamgant has been there, too.)
But, some good news was recently announced related to these disruptions…
Just in time for the busy summer season – Government officials decided to implement new policies that will require US-based airlines to accommodate and/or compensate their passengers who are subjected to disruptions they didn’t cause.
Which means… you can expect to receive assistance with rebooking your trip and any necessary meals, hotel stays, car rentals, etc. the next time you have a “significant change”. So long as you’re travelling with carriers like Delta Airlines, United Airlines, American Airlines, Alaska Airlines, Southwest Airlines, and more.
On top of that – if the disruption DOES qualify as a “significant change” you will likely be entitled to a full automatic refund from the airline (effective October 28, 2024). And… it can be in cash.
That’s huge… RIGHT?!
Here are the full details on these policy changes…
Cancellations and delays policy
The new U.S. Department of Transportation (DOT) rules surrounding cancellations and delays specify that airlines MUST provide a full refund to customers who experience a “significant change” to their flight that is within the airline’s control.
A “significant change” has been defined as any of the following:
- A change in departure/arrival time longer than three hours from the original time for domestic flights
- A change in departure/arrival time longer than six hours from the original time for international flights
- Changes to the departure or arrival airport
- Changes that add an increased number of connections
- Changes that result in a downgrade to a lower class of service
- Changes to a different airport or flight that is less accessible to a person with a disability
If you end up in one of these situations, the airline will be required to automatically issue a full refund of your ticket cost. This refund will either be given in cash or directed to the original form of payment – whichever the customer prefers.
However… It’s important to note that those who wish to accept travel credits or an alternative flight/transportation option will NOT be entitled to a full refund of their ticket cost. Regardless if the original flight underwent a “significant change”.
On top of this requirement, Southwest Airlines is also expected to issue vouchers worth $75 or more to customers impacted by “significant changes” until April 29, 2027. This extra voucher rule is in place due to Southwest’s operational disaster that stranded approximately 2 million of their passengers during the 2022 winter holiday season.
Most major airlines have committed to providing meal vouchers, hotel accommodations, rental cars, etc. for their customers impacted by cancellations or delays that fit the criteria listed above.
Baggage policy
Government officials are also cracking down on mishandled luggage with new policies related to baggage delays…
In the event that you don’t receive your luggage within 12 hours of a domestic flight and 15-30 hours of an international flight, customers will be entitled to a full refund of any baggage fees paid at the time of booking or check-in.
This move comes as many U.S. airlines decided to raise their checked baggage fees earlier this year, including American Airlines, JetBlue Airways, United Airlines, and Alaska Airlines. All of which hiked their respective fees by at least $5-$10 each.
Extra services policy
When it comes to any extra services the customer may have purchased, such as onboard Wi-Fi, seat selection, or inflight entertainment, the airlines MUST fulfill those offerings or risk granting a full refund.
For example: If you purchase an onboard Wi-Fi package and the internet service only works properly for 10 minutes of your six hour flight, you would be entitled to receive an automatic refund.
Hidden fees policy
Those of us who fly often have probably fallen victim to hidden fees at least once (or… maybe… more often than we’d like to admit). Under previous government policies, that was allowed to happen ALL. THE. TIME.
Certain airlines are known for displaying lower fares on their initial booking screens and then sticking ancillary fees on top of those fares right before the customer decides to finalize the purchase.
These practices aren’t going to slide when the new DOT policies take effect. There will be no more guessing games. No more jumping through hoops. And no more hoping the fare price won’t go up by tens (or hundreds) of dollars as you click through the checkout screens.
In an effort to “prohibit unfair and deceptive practices in air transportation and the sale of air transportation”, airlines will be required by the government to disclose the ENTIRE fare cost (including any hidden fees) on their initial booking screens.
This will ensure customers are fully aware of what they’re paying for and allow for more informed decision-making when comparing flight options.
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Curious how this will impact your travel program moving forward? More information about unused tickets, airline waivers, etc. is coming your way soon!
Questions in the meantime? Get in touch with your Gant account manager, they’re here to help.
For additional details on the new DOT policies that are going to be enforced, we recommend checking out these articles:
https://www.cbsnews.com/news/biden-airline-rules-junk-fees-refunds-cbs-news-explains
https://www.washingtonpost.com/travel/2024/04/24/canceled-flight-refund-lost-bag-rules
