Uh oh: United updates its policy on mistake fares, gaming the system
Mistake fares generate a lot of buzz, but good luck getting them honored on United Airlines.
The Chicago-based carrier updated its contract of carriage document on Friday, Feb. 17, with some significant changes for those who purchase mistake fares.
Effective immediately, United "reserves the right" to cancel mistake fares, which the carrier now defines as "tickets priced at a zero or close to zero fare."
The airline also added a provision that it would reimburse any "reasonable, actual, and verifiable out-of-pocket expenses incurred by the purchaser in reliance upon the ticket purchase."
That means that if you purchase a nonrefundable hotel, car or tour package in conjunction with a mistake fare, the airline will make you whole by covering that cost when it decides to cancel and refund the ticket.
In addition to the updates regarding mistake fares, the carrier also added some additional language around what it considers an "improper reservation." In particular, consider yourself warned if you buy United flights that "are or likely will be delayed" and then "make a claim or receive a benefit" from United.
In those cases, your ticket is subject to cancellation, and United may also close your MileagePlus account, take away your miles, void any future flight credits, ban you from flying with the airline and assess you for any amounts owed in conjunction with these fraudulent practices.
While United didn't define what it means by booking a delayed flight and then making a claim or receiving a benefit from the airline, I'd imagine that this update is potentially targeted at travelers who purposely book last-minute delayed flights to collect compensation.
United often gives future travel vouchers or miles to travelers who experience lengthy delays, and compensation is a legal requirement for flights to and from Europe under the EU 261 regulation.
When a long-haul flight to or from the European Union is delayed by at least four hours or canceled due to an issue within the airline's control, you're entitled to 600 euros (about $640) in compensation. A similar rule applies to flights to and from the United Kingdom, as well as a few other countries, including Israel.
United seemingly doesn't want passengers gaming the system by booking delayed flights to collect compensation. In fact, a last-minute walk-up fare for a delayed flight between the U.S. and Europe could cost less than the amount of compensation that you'd receive under the EU 261 regulation.
While United didn't share with TPG the reasoning behind these contract of carriage updates, it's theoretically possible that some travelers have taken advantage of these rules and requested thousands of dollars in compensation. Now, the carrier is putting an end to that practice with these new provisions that could lead to a lifetime ban (and other punishments) from the airline.
Meanwhile, codifying a mistake fare policy into the contract of carriage doesn't actually change much from a passenger perspective.
That's because U.S. airlines must follow the Department of Transportation policies, which actually include a similar provision around mistake fares.
In the early 2010s, the DOT required airlines to honor these tickets as part of its prohibition on post-purchase airfare increases. However, honoring mistake fares seemingly wasn't the intention of the rule.
In 2015, the agency revised its policy to allow carriers to cancel and refund mistake fares after demonstrating that they are indeed mistaken. As part of the updated policy, the DOT also requires airlines to reimburse out-of-pocket expenses incurred upon reliance on the ticket purchased.
As you can see, United's update around mistake fares mirrors the DOT's, though this is the first time that the airline has codified the rule into its contract of carriage.
By purchasing a ticket with United, you must agree to abide by the airline's contract of carriage. Without checking the box that you agree, you won't be able to move forward in the purchase process.
So, whether or not you like the new rules, you must abide by them to fly with United. If not, consider yourself warned — you might lose the ability to fly with United, participate in the MileagePlus loyalty program, or worse ...
Related reading:
- 6 things you need to know about United Airlines MileagePlus
- The best credit cards for United Airlines flyers
- What is United Airlines elite status worth?
- Maximize your airfare: The best credit cards for booking flights
- The best credit cards to reach elite status
- How to survive basic economy on United Airlines
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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. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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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.