Archives for Mar,2018

In the past, people used to book their train tickets and cancel them bearing very little to no cost for cancellation. The airlines’ industry has seen such a trend in the recent past, but the cancellation fee is not as simple as in case of trains or other modes of travel.

This happens when the airlines release early bird tickets and passengers book their flight tickets in advance, sometimes even 2-3 months before the date of travel. Tickets are booked and then cancelled before the date of flight because plans change, and the refund given on the tickets is minimal due to the penalties imposed by airlines on the cost of exit.

It has been observed, that almost 9% of the total passengers end up cancelling their flight bookings on online travel booking site MakeMyTrip. At Paytm around 10% – 15% of travel customers cancel or reschedule their flight.

According to the rules for cancellations on most flights in India, if a customer does not check in for a flight at least 45 minutes prior to the departure time, the total amount of ticket will be forfeited, except government and airport fees such as Passenger Service Charges(PSF) and User Development Fees(UDF). If you cancel at the last minute, you could lose out on almost the entire ticket price.

Here are the rules implemented by the government on refund of a flight ticket if you cancel –

• Cancellation charge can’t be more than the basic fare plus fuel surcharge
• All statutory taxes must be refunded
• User Development Fee and Passenger Service Charge must be refunded
• There will be no charge on the process of refund

So how do you bring down your losses?

There are two ways to do this. One is by opting for “free” or “zero” cancellation offers, and the other is to buy travel insurance. Let’s look at these options in detail.

Zero Cancellation Offer

These days, passengers have a wide range of travel booking sites, such as MakeMyTrip, Paytm and Goibibo, to choose from while booking flight tickets. Such sites offer “Free Cancellation Offers”.

For example, MakeMyTrip offers 100 % refund of airline penalties on Domestic travel. You get a refund of close to Rs3000 on an average in case of refundable flights, and Rs 5,000 on an average for non-refundable flights. You are also entitled to full refund of MMT’s cancellation service fee.

One out of 8 passengers at MakeMyTrip and 6%-10% of Paytm’s passengers booking a flight opt for free cancellation.

But opting for Free Cancellation Offers is not really “free”. For instance, at MMT, you must pay Rs99-549, depending on the ticket’s price. At Paytm, you have to pay Rs199 onwards, and with Goibibo, the cancellation fee starts at Rs149 for select one-way domestic flights.

You, as a passenger, have to be aware of such rules and have to weigh the pros and cons of whether the offer given is worth the effort and fee.

• With MakeMyTrip, this offer is available on select routes and flights. You can get a complete waiver only if you cancel 24 hours prior to departure. If you just want to change the date of travel, this option is not available.
• Paytm offers to refund the ticket amount on select routes and only if you cancel at least 3 hours before the flight time.

Also, according to the Reserve Bank Of India guidelines, the refund amount has to be credited back to the source of the initial payment. So, if you booked using a credit card, the refund will be to the same card.

Travel Insurance

The other way to save on your cancellation charges is to buy a travel insurance.

Just like “Free Cancellation Offers”, you must be aware of the rules and policies of insurance companies and the extent to which they cover the insurance.

Here is a list of benefits you get if you apply for travel insurance –

• Travel insurance plans cover the loss of baggage, medical expenses and pays the total cost of your bookings
• It costs a fraction of your total trip
• You can claim insurance online and get phone support 24/7
• You are at ease while travelling when you are insured

Most of the insurance companies follow rules where the insurer pays you refund on the ticket, but you have to keep in mind that they do so in a specific situation and there is a limit to the claim.

Cancelling flight tickets and claiming the refund can be a very difficult task but Zero cancellation offers, and travel insurance can make that task easier for you.

So, the next time you book your ticket, Download the AirWhizz app and apply for a travel insurance with us. We at AirWhizz have partnered with prestigious travel insurance companies such as HDFC Ergo to help you plan for any unforeseen changes that might occur.

Enjoy peace of mind while traveling and Fly Stress-Free!