My ticket price fell — how about a refund?

by Christopher Elliott on September 22, 2009

hawaiiQuestion: I’m trying to get a refund from United Vacations, but nothing seems to be working. I booked a car-and-air package from Denver to Lihue, Hawaii, through United Vacations recently. I registered my airfare through Yapta.com, which alerts you when the price of your flight drops.

A few weeks later, I received a notification that the price of my flight had fallen by $733. That amount of money is significant to me. I called United Vacations, but was told I couldn’t get a refund. Had I booked through United Airlines, I would have received a voucher.

Is there anything I can do to persuade United Vacations to change its mind? I will happily rebook another trip with United Vacations if this is rectified properly. — Mary McInnis-Efaw, Fort Collins, Colo.

Answer: You would think United Vacations — which is owned by United Airlines — would offer the same no-questions-asked refund when fares drop.

Not necessarily. When you booked your flight on United, you were entitled to a refund of the difference between the new, lower fare and the old fare, minus a $100 change fee. But if you buy a package through United Vacations, you’re subject to a more complex set of terms and conditions (you can read them online here) that don’t seem to offer any such guarantee.

Part of the reason is that United is selling tickets for other airlines, including Air Canada, US Airways, Hawaiian Air, and various regional airlines. All of the air carriers have different refund rules. Another part of the reason is that tour operators and travel agencies that offer package deals sell what are known as “consolidator” fares, or bulk fares that have more restrictions than the average ticket.

Still, I think it’s reasonable to assume when you’re dealing with a company owned by United Airlines, and you’re also flying on United, that you could qualify for the refund. And $733, as you point out, isn’t chump change.

United wasn’t the only airline that offered refunds when fares fall at the time you made your reservation. But I don’t think they should. In real life, I don’t run back to the department store three months after I buy a pair of shoes and demand the difference between the price I paid and the sale price. I think the only reason airlines feel they have to offer these refunds is because they play price games, offering a rock-bottom ticket price one minute and quadrupling the price the next.

Maybe if they stopped that nonsense, you wouldn’t feel ripped off when the price of your airline ticket fell.

Calling United Vacations was a good first step, but a quick, polite e-mail to the company, explaining why you felt a refund was in order, might have worked better. Often, call center agents are nothing more than script-reading drones that are incapable or unable to appreciate the nuances of your compelling arguments. A concise e-mail, however, is more difficult to dismiss and can easily be forwarded to a supervisor if you’re turned down.

I contacted United Vacations on your behalf. It sent you a voucher for $733. It also implemented a process to allow a credit to be issued on the airfare portion when a price has decreased.

(Photo: PhotoluluGuy/Flickr Creative Commons)

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  • Bodega

    First off, UA Vacations is not operated by United but by Mark Travel.

    Second, did Mary read the terms and conditions of her package before purchasing her travel arrangements? Did she purchase the Cancellation Waiver? This isn’t mentioned. Had she purchased the Cancellation Waiver, she could have had UA Vacations rebook, based on availability for no fee. Fares go up and down daily. The small cost of the waiver gives you some protection for cases like this, but I guess she didn’t realize that.

    Third, why did she think she should have received a refund if she purchased a package that clearly states the rules that every passenger is suppose to go by?

    A voucher isn’t the same as a refund and to use it she has to spend more money to travel again. Smart move by UA Vacations.

  • John

    United actually has a $150 change fee when there is a price drop. I found this out the hard way recently. I wrote an letter to customer service, letting them know that as a frequent flier, I had never seen any communication that the price change policy had taken place, and that they should do a better job of communicating that information. Never heard anything back, and I didn’t even bother pushing the issue for the $40 refund.

  • Bodega

    Actully John, the change fee varies according to domestic and international and we don’t know what type of fare Mary had in her fly/drive package. It could have been a bulk fare or a published fare. My guess is she had a published fare as the site she registered with wouldn’t know the bulk fare as those are contracted fares that are private.

    As for price drops on published fares, you won’t get anything back on a $40 fare drop unless your ticket was on an unrestrictive fare.

    What cancel policy are you referring to? There isn’t anything new.

  • Amy

    What a pain to have to undo the bits and pieces of a package when parts of it change. That’s what happens when you buy a package. I would not have been surprised if she had to eat the difference.

  • DCTA

    John –

    You’re a “frequent flier”? United and just about every other airline has been charging a “change fee” since at least 1990 – at that time it was as low as $20, but it’s pretty much been $150 for at least two years now on domestic tickets and as high as $250 on international. There’s nothing new here.

    I agree with Bodega, if you read the Terms & Conditions and then opted to not purchase the Change and Cancellation Waiver, why would you expect a refund of the difference of a fare that has dropped? Does not make any sense at all.

  • DCTA

    Amy – there’s nothing wrong with packages, as long as you pay attention to the Terms & Conditions – a frequent (almost always) trap that self-bookers fall into is that they don’t read the Terms & Conditions, just simply check off on it.

  • Laura

    Airfares change frequently. If the price went up, and the airline came back to you and wanted more money, you’d probably be ticked. So why do you think you’re entitled to a refund when the price goes down?
    You agreed to take that flight at that price. If you didn’t get the insurance. it’s the chance that you take. I am sure it’s frustrating to know that you could have paid less, but you also could have wound up paying more.

  • Mr JJ

    The change if is $150.00….But isnt this calling the kettle black.

    If she used a travel agent int he first place the agent would have given her the rules.
    But honestly Chris……Your stepping in like that makes you look like a hero when all your doing is bypassing the rules and contradicting yourself.

    There are exceptiions to every rule but you constantly think its ok for Joe public to break them and not have any consquences.

  • DCTA

    I can understand an argument that the rules may not be “fair”, but rules are rules and if one “signs off” (clicks that is) onthe Terms and Conditions – well…….

  • Nina

    Dealing with any tour company run by Mark Travel for a price adjustment can be exhausting. Their goal in my experience is to buy their insurance which allows changes or cancel for any reason without charges. This holds true with many tour companies.

  • Arizona Road Warrior

    I don’t know why Chris continues to give a platform to travelers like her. It seems like she didn’t read the T&Cs; didn’t purchase the insurance; didn’t deal with a travel agent; and etc. It will be a different story if United Vacations didn’t follow their T&Cs.

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