Should You Accept Airline's Voucher Offer?
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It is common nowadays for flights to be cancelled before the planned travel dates. The airline may no longer be able to fly to certain destinations. Please read our article to learn which is wiser: whether to accept the refund as an airline voucher or apply for a monetary refund.
Covered in the Article
Cancellation Compensation as a Voucher
Lately, airlines have cancelled multiple flights, and unfortunately, more cancellations will be coming. Also, in normal conditions, flights are cancelled now and then. A route may get suspended, or another similar reason may lead to a cancellation. Airlines rarely offer a refund to passengers in the form of money, but they prefer a more favourable option - airline vouchers.
Often, an airline proposes postponing the flight or an alternative route to the destination. This is impossible if there are no alternative routes or if it is unclear when the airline flies to the destination. In that case, the airline normally suggests accepting a gift card or voucher. The voucher can be used later as a payment method for future bookings with the airline.
Pros of Vouchers
Undeniably, vouchers have advantages for both parties. You should not instantly reject a voucher offer without evaluating its benefits. Instead, we suggest you carefully analyse its terms by looking at the facts.
Support for the Airline
In a difficult financial situation, an airline needs all the possible money. Airlines are reluctant to refund the tickets as money but prefer giving vouchers to keep money in their accounts. You may accept the voucher offer if you feel supporting the airline in a difficult financial situation. However, it is not one's responsibility to support commercial companies; instead, customers are free to decide whatever they feel is the best.
Increased Value
Almost all airlines offer vouchers with increased value. For example, the value may be 20 euros higher than the original ticket value. Finnish airline Finnair has promised to increase the value of the cancelled ticket by 10 per cent. Accepting the voucher if you intend to fly with the same airline soon is a good idea. Then, you will get more value for the same amount of money.
Easy to Accept
Airlines have made it easy to accept vouchers. Usually, that is much easier than asking for a full refund. Of course, this is not a coincidence, but the airlines try to influence customers to choose a voucher compensation. Everyone knows that dealing with an airline is complicated, even in normal circumstances. The easiest solution is to accept the voucher offer. However, if the voucher doesn't seem wise for you, there is no reason to accept it.
Cons of Vouchers
Vouchers also have bad sides. It is essential to understand drawbacks well before accepting the compensation as an airline voucher.
Strict Terms
Gift cards have terms. For example, they have a validity period, and the expiration date can arrive surprisingly soon. Using the voucher in several batches may also be impossible, but you must use the whole value simultaneously. Some airlines even ask for an extra service fee when paying with a voucher; sometimes, extra services can't be paid with a voucher. Before accepting a voucher compensation, you must familiarise yourself with the terms.
Bound to the Airline
A voucher is bound to the airline which granted it. It may be that the airline is no longer flying to your favourite destination on future dates you would like to travel. In that case, the voucher is useless. A competitor airline company may fly to such a destination but does not accept your voucher. Therefore, the voucher won't benefit you anymore.
The Route Network of the Airline Becomes Smaller
The airline's route network may get significantly smaller due to a turbulent financial situation. For example, the airline may not fly anymore to your home country. It is then impossible to use the voucher provided by the airline.
Future Flight Prices Unknown
Indeed, getting a voucher with an increased value is nice, but nobody can predict the flight price level in the future. Even though the voucher's value may increase by 10 per cent now, it won't help when the flights cost 50 per cent more. Consequently, the flights may become so expensive that you do not want to travel.
Not Valid on Online Travel Agencies
You must almost always redeem airline vouchers on airlines' websites. You can't use them on online travel agencies like Expedia, even though Expedia may sell the same flights cheaper. Airlines' websites are more expensive compared to online travel agencies. When booking through the airline, you end up paying more. You will easily lose the extra value of the voucher.
Impossible to Select the Cheapest and Best Flight
A voucher is strictly bound to a certain airline. Comparing flight prices and routes on the internet is no longer useful because, with the voucher, you can't choose the best and the cheapest route. You are bound to book the flight offer only from this concerned airline.
Bankcruptcy
Bankruptcy of the airline is not impossible. Then you will most likely lose the whole value of the voucher. Even your credit card company may be unwilling to compensate you since you had agreed with the airline to change the refund to a voucher.
What Did We Choose Ourselves?
We had a plan to visit Eurovision Song Contest in Rotterdam. Because ESC was cancelled, we no longer intend to travel to Amsterdam. Luckily, we got a full refund for our hotel booking. Also, airBaltic cancelled our flight to Amsterdam, and we decided to apply for a refund. We don't see any reason to accept airBaltic's voucher offer even though we would have got 80 euros extra value. The financial situation of airBaltic is unforeseeable, and the airline has announced the end of many of its routes. Most likely, the voucher would have been useless for us.
Bottom Line
There is no single answer as to whether to accept the airline's voucher or to apply for a refund. Everyone needs to consider themself by evaluating personal circumstances. As a tip, we recommend not accepting a voucher offer if you can't justify its benefits with facts. It is more than likely that you will never be able to use the voucher.
Getting a refund from the airline is a slow process. It is unclear if the passenger gets money back or if the airline's cash reserve is empty. In that case, you may apply for compensation from the credit card company.
Did you have flight bookings cancelled? Have you requested a full refund of your money, or did you accept an airline voucher offer? Comment below!
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