Travelers are furious.
During the past month, they’ve watched the travel industry line up at the trough for government handouts. A $500 billion loan fund for hotels and $50 billion for airlines. Travel agents who book airline tickets can apply for $25 billion in loans and loan guarantees.
Yeah, that’s billion with a “B.”
And what did America’s taxpayers get for it? Not much.
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Travel companies didn’t have to promise to fix their abusive policies. Airlines may continue charging outrageous fees and squeezing us into small seats. Tour operators are allowed to force us into ridiculous contracts when we book a vacation. And hotels can keep on charging “gotcha” resort fees.
In fact, many travel companies just turned around and retroactively changed their refund policies to allow them to keep even more of your money.
“I’m really fuming,” says John Kovacs, a retired consultant and frequent traveler based in Denver. “They get a bailout and continue to force us into hamster-size seats.”
So what would make travelers less angry? Well, maybe we need a bailout. Not a financial bailout, but a helping hand from the government. Travel companies should obey their own rules and government regulations. Maybe we can’t go back and impose conditions on that $2 trillion in government aid, but can’t we at least attach a string or two to future assistance?
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Companies have to follow federal regulations
When it comes to customer service, travel is lightly regulated. But there are a few rules. One is the Department of Transportation’s requirement that airlines fully refund a flight if they cancel it, regardless of the reason.
By the way, if a refund is due, the DOT says your airline must process it within seven business days if you paid by credit card, and 20 business days if you paid by cash or check.
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But airlines apparently believe this rule is negotiable in the coronavirus outbreak. Last week, United Airlinesbegan telling customers that it can offer only a ticket credit, even when it cancels a flight. Others quickly followed.
I checked with the Transportation Department, which reaffirmed that the rule is very much in effect. Then it issued an enforcement notice reminding airlines that passengers should be refunded promptly when their scheduled flights are canceled or significantly delayed.
“Although the COVID-19 public health emergency has had an unprecedented impact on air travel, the airlines’ obligation to refund passengers for canceled or significantly delayed flights remains unchanged,” the agency said in its April 3 order.
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It’s the height of corporate arrogance to ask their customers – the American taxpayer – for a bailout and then to take even more of their money. Yet that’s exactly what is happening.
No wonder travelers are livid.
Travel companies should follow their own rules
It gets worse. For years, travel companies pushed their customers into one-sided contracts that limited – or completely eliminated – their rights. If you wanted a full refund on a cruise, flight or resort stay, there was only one certain way you could get it: The company had to cancel. But in recent days, companies have reneged on that industry-standard practice, too, citing “extraordinary” circumstances.
Consider what happened to Kelly Kraft when Sandals canceled her coming vacation at Beaches Turks Caicos, an all-inclusive property. A representative contacted her and told her that the $11,284 she’d paid for her vacation was “fully nonrefundable.” Sandals offered her a credit valid for one year.
“They are trying to find a reason to justify keeping the money I paid for services I am not going to receive,” says Kraft, a sales director from Diamondhead, Mississippi.
Interestingly, Kraft’s cancellation isn’t even addressed in her contract. Sandals has rules for when you cancel a vacation, but not when it cancels. A Sandals representative said the company has always addressed these rare instances on a case-by-case basis. But she added that reaction from customers to its voucher offer has been “overwhelmingly positive.”
I’m not so sure about that. Many travelers are stuck at home and are facing sickness or unemployment as the coronavirus spreads. Is it asking too much for a travel company to refund a vacation it canceled?
If companies want more aid, travelers should get something
Travel companies may ask for even more aid soon. if and when they do, legislators should attach a list of common-sense requirements to the next bailout. At a minimum, airlines, cruise lines and hotels must follow their contracts and obey all applicable rules and regulations.
But these companies should also promise to do better. They can’t just pick up where they left off when the outbreak started. Their customers deserve to be treated with respect and dignity, now more than ever.
In an age of social distancing, airlines should offer all of their passengers a humane – and safe – amount of personal space on a plane. Hotels must stop charging surprise resort fees. And all travel companies should honor their agreements.
The travel industry should have been treating their customers better all along. But if they’re going to take our money, they need to start behaving better now.
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What travelers want from the airlines
The airline industry is likely to ask for more aid in the coming weeks. Here’s what tax-paying travelers want in return for bailing out the airlines:
Fair fees. Airlines should agree to stop charging fees that are unreasonable or disproportional to the costs they incur. That means no more $750 ticket change fees or $200 baggage fees.
Humane seat sizes. The government is under a congressional mandate to set minimum airline seat sizes. Until it does, airlines must promise to refrain from moving their seats even closer together.
Flexible refunds. Airlines must fully refund a ticket when a passenger has an infectious disease. And those change fees they waived for spring flights? Make them permanent, please.