Businesses have busy and ever-changing plans. Business travel plans sometimes fall through due to shifts in scheduled meetings, changes in business strategy, or change in staff. These are some of the many reasons to cancel a business trip. Sometimes, it’s not even the company’s fault. The airline may cancel or schedule flights for multiple reasons. This leads to unused flight tickets which can lead to a huge loop in the planned and actual budget of business trips. The travel management must know the rights and hacks to minimize the chances of unused flights and should be able to get as much refund as possible if a flight ticket goes unused.
What is an unused flight ticket?
An unused airplane ticket is made when the traveler responsible to avail the specific flight is unable to take the flight due to a change in plans or unexpected situations. Usually, such a ticket is non-refundable but can be refunded if the travel agent knows his way around such circumstances. There can be multiple reasons that can lead to an unused flight ticket.
Majorly there can be two situations
1. Airline itself canceled the flight
There can be multiple technical issues that lead to the cancellation of a flight. Weather conditions, sudden strikes, political situations, or faults in the aircraft are some of the many reasons why an airline voluntarily cancels a flight. In this scenario, the refunds are easy to get. Either the airline reschedules the said flight or makes immediate refunds to the travelers or travel management company.
2. Traveler is not able to take the flight
It is very common in business travel to change plans at the last moment. There might be a sudden important meeting, the staff might have left the company, or there can be personal emergencies. It is relatively hard to get the whole amount of airfare refunded when the individual cancels their ride. Most airlines refuse to give refunds if not informed before 24 hours of the departure.
What to do with unused airline tickets?
An efficient travel manager should be able to manage an unused flight ticket properly. The best possible thing to do is to try and get the amount refunded. Some airlines offer a refund amount in terms of vouchers. The travel manager must insist on a direct refund. Sometimes, it can be hard to manage an unused ticket. Below are some things, a manager can do:
1. Know your rights
A flight ticket fare is made up of a lot of components such as base fare, taxes, processing, and convenience fee. When a flight itself cancels the flight for whatever reason, the passenger has the right to get the full amount refunded or a rescheduled flight.
In case when the passenger cancels the flight, they are still entitled to a refund of fees and taxes at any point in time whether they notified the airline or not. Usually, taxes and fees amount to 70% of the total flight fare. Some airlines even have a refund policy, so contact them before making any decisions and try to get the whole amount refunded. Even when an airline is able to occupy the unused seats, the traveler is entitled to a full refund of the ticket.
2. Unused flight credit
In the case of a non-refundable ticket, the passenger gets a flight credit for an unused flight ticket. This credit can be utilized in a specific period of time (usually 10-12 months). For this, the travel agent must be able to manage and review the balances and expiry dates of all the unused credits as these credits are given to individual employees. It might not be possible to change the names assigned to unused credits. To avail of maximum benefits and minimize costs for the company, the manager should be able to incorporate these unused flight credits into the upcoming trip.
3. Apply for refunds through vouchers
If there is no option available to get the amount refunded directly to the bank, apply for the vouchers that you think can be useful for the business and future trips. It might not offer a great deal, but something is better than nothing. Usually, the timeframe to avail an unused flight ticket benefits is short. So, the manager must act fast to get the maximum benefits.
Suggested Read: What Is The Meaning Of Open Booking?
Steps to avoid unused flight tickets
To avoid the cases of unused flight tickets in the future, below are some suggestions that you can consider while booking a flight ticket.
1. Book a refundable ticket
There are various types of tickets offered by an airline. Non-refundable tickets might be a little cheaper, but the travel manager must not take risks while planning a business trip and should always book a refundable ticket to ensure the security of being able to cancel your flight and receive the ticket refund.
2. Automated ticket tracking system
To make the life of a travel manager simpler, there are much online software that automatically manages all the unused tickets and helps the finance and travel department in minimizing the cost of travel.
3. Airlines with better customer services
Do some research and find the best airline that provides flights with cheaper rates and the flexibility to cancel flights with minimum loss. Booking tickets from an airline that understands business travel and its complexities can provide better customer service in times of emergencies.
Conclusion
Every year, many companies lose about 5-7% of their travel money due to unused flight tickets. Strengthening the unused ticket management system can help the company to save a lot of travel money. It can provide assistance to the accounting department and the travel managers as well. Always remember to compare the prices and the benefits of different airlines while booking.
Suggested Read: 8 Tips To Get Best Deals On Corporate Flight Bookings
Unused Flight Tickets FAQs
When can we get a full refund for a flight ticket?
There are many cases when you can get the whole amount refunded to your bank account. Some of the guaranteed situations are: a) If the airline itself cancels the flight, b) If the traveler cancels the flight 48hrs before the departure time.
Are the travelers entitled to a partial refund for an unused flight ticket?
Yes, the travelers can get the fees and the taxes part of the flight ticket refunded. However, there are specific time frames when you’ll be eligible to get that refund.
What happens when the airline cancels the flight?
Whenever an airline cancels a flight, they generally allot all the travelers to a different flight. If that is not possible due to certain circumstances, the airline must refund the total ticket fare to the customers.
Can we change the names of the passengers entitled to unused flight credits?
Most airlines do not give the option to change the name of the traveler for an unused credit. However, some top airlines charge a certain amount to change the name of the passenger on the ticket.
