Airlines join cruise lines in offering incentives for not canceling tickets
Airlines around the world have been hit hard by the coronavirus outbreak, with many making significant capacity reductions and some suspending operations altogether. Airlines are currently in fight-or-flight mode and doing whatever they can to conserve cash and limit refunds.
While some airlines like United are making it harder to get a refund for flights canceled due to schedule changes, some are taking more customer-friendly approaches and offering incentives to get passengers to hold on to their tickets and accept travel credits instead of refunds.
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For instance, One Mile at a Time reports that American Airlines is offering at least some passengers a 20% bonus when they opt for a future travel credit with the airline instead of a cash refund for the flight. According to the airline's website, when a flight is canceled, passengers will either be rebooked on an alternative flight or offered a full refund. An American Airlines spokesperson was unable to confirm or deny the reports of this incentive, but did tell us that the airline works with impacted customers on a case-by-case basis and will provide options that make the most sense for them, whether that be an alternative flight, travel credit or full refund.
Related: Waivers and schedule changes in effect at U.S. airlines due to coronavirus.
While not quite as generous, on March 24, Qatar Airways announced an official policy that incentivizes customers for taking a travel credit instead of refund. Customers who choose a travel credit will receive the full unutilized value of their ticket plus an additional 10% of the fare cost. As Qatar explains:
Qatar Airways has amended its ‘Travel with Confidence’ and flight disruption policies to give customers even more flexibility. Customers who choose to receive a travel voucher for future use will receive the full unutilized value of their ticket plus an additional 10% of the fare cost as an added value offer. Customers also have the option for a refund back to the form of payment they used when purchasing their tickets – the administration of this refund will take up to 30 days to process. Vouchers for future travel continue to be the most expedient way of helping customers while we manage the backlog.
While not a new policy, the Hungarian-based low-cost airline Wizz Air also offers a 20% bonus when you opt for a travel credit instead of refund for a canceled flight. The credits are provided automatically when flights are canceled online.
Related: Can I claim EU261 compensation if my flight was delayed or canceled because of coronavirus?
Frontier Airlines previously offered a limited-time waiver policy that incentivized passengers with an extra $50 credit if they voluntarily canceled an itinerary for travel between March 22 and June 17. However, that bonus was only available for cancelations made by March 23 and there's no telling if the airline will offer that bonus again.
In offering incentives to passengers to get them to accept travel credits instead of cash refunds, airlines are copying a strategy that has become widespread in the cruise industry.
Most major cruise lines in recent weeks have begun offering passengers on canceled sailings a bonus credit of 15% to 25% if they choose a credit instead of a cash refund.
On Royal Caribbean, for instance, passengers on canceled trips can choose between a full refund or a future cruise credit in the amount of 125% of the fare paid for the canceled trip. The credit can be applied to any voyage through Dec. 31, 2021.
Royal Caribbean has canceled all departures worldwide through April 10, as have all other major cruise lines. Some lines have canceled sailings even further out.
Related: Cruise line 'draws' 16-mile-wide smile at sea as departing gift for passengers
Other cruise lines offering a 25% bonus credit to passengers who forgo a cash refund include Celebrity Cruises, Crystal Cruises, Norwegian Cruise Line, Oceania Cruises, Seabourn, Silversea, Viking, Windstar and Regent Seven Seas Cruises. River line AmaWaterways is offering a 15% bonus. Greek Islands cruise specialist Celestyal Cruises is giving out a 20% bonus.
At least one cruise line is going even further. Start-up line Virgin Voyages, which postponed the inaugural sailing of its first ship, Scarlet Lady, from March to August due to the coronavirus outbreak, is offering passengers on canceled trips a travel credit in the amount of 200% of what they paid to apply to a future sailing. That's in lieu of taking a cash refund.
Those who do ask for a refund from Virgin Voyages still will get a 25% credit that can be used toward a future cruise in addition to all their money back.
Bottom line
It's nice to see that at least some airlines are providing an incentive for taking a travel credit instead of refund. However, keep in mind that if you do take an airline up one one of these offers and your new flight gets canceled, the airline will not provide a cash refund down the line. It's also important to take note of when your travel credit will expire as ticket credits are often only valid for a year from the date that the ticket was originally issued.
For more on the coronavirus outbreak, see:
- What does the deadly coronavirus mean for travelers?
- How coronavirus has left the travel industry reeling
- No coronavirus waiver? Some airlines have you more covered than others
- How to ward off coronavirus in your hotel room
- Guide to traveling during the coronavirus outbreak
Additional reporting by Gene Sloan.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.