Affordable Refundable tickets?

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Affordable Refundable tickets?

At this time, any travel booked should be looked at as a gamble. Likewise, ways to hedge bets are also advised.

At stake is any money you invest in a hopeful trip, while the payoff is a trip that would cost much less than it did in 2019 and possibly much less than it will be in 2022. In the travel industry, we have never seen a pandemic like COVID-19 before, but we have seen others.

Historically, periods of extremely low travel are marked by equally low fares. These periods are nearly always followed by a period of revenue recovery when travel companies make back lost profits. COVID-19 has been so severe that we will almost certainly be seeing less supply than we did in 2019. Supply and demand economics is perhaps even more true in the travel industry than others.

Soon I will release a number of tips on strategies to hedge your bets in booking travel in the recent future. I just had one come up through Sweden that I can share.

One thing that some do not realize is that some airline tickets are refundable. They can be 100% refundable or, more commonly, refundable with a penalty fee.

To see this in action: I have a client that wishes to go to Sweden in September when the COVID-19 threat is still possible but hopefully mitigated at least. Ticket prices were half what they normally would be. After careful research, I found that one ticket on those dates to their desired location was refundable. The price difference between the refundable and non-refundable ticket was less than 20%.

Because I am not just an agent but also a travel counselor, when the client told me she could get that low, mostly refundable, ticket with her points (non-airline specific points), I was happy to tell her to do it. Not only did she reduce her liability in cost by over 80%, she differed that cost through credit card points.

While the agent in me would’ve liked the sale, the counselor loved finding such a great solution on this particular COVID19 gamble.

However, this trend has continued into South America and Africa as well, I just found refundable vs nonrefundable tickets with major airlines for less than a 5% increase in cost. Covid-19 may make travel insurance a bust, but airfares with penalties like this do not need to be insured. While many fares are still nonrefundable, I have never before seen so many great values on refundable or mostly refundable tickets.