The State of Business and First Class refundable fares in 2022
Fully refundable fares have historically been very high. But the Lockdown created not only a waiver of cancellation fees, but also a whole new category of relatively low fully refundable fares.
And here’s the catch – the industry hasn’t noticed or emphasized this, with all the attention going to fee waivers. Not the same thing.
Since travel is back and booming post Lockdown, we thought we’d check the status of refundable fares to see how the opportunity landscape may have shifted with American, Delta, and United.
Let’s first review non-refundable, but fee-free, cancellable tickets
Fee-free cancellations get you a voucher or a trip credit that’s usually valid for 12 to 36 months (more about that here). Although you have that year+ up your sleeve to plan something, “voucher” or “trip credit” means you won’t get any cash back in your hands.
As we were working on this report — which focuses exclusively on fully refundable fares, NOT fares that are cancellable and rebookable for free or a fee — we discovered several things:
- They go by many names, including “flexible fares,” “fully refundable,” and “refundable.”
- Opportunities vary for the same flight, from one airline and partner to the next.
- The Gold Medal goes to American for seemingly charging the least extra for refundability.
Why Pay Extra for a Refundable Fare?
- It’s good insurance if you don’t fly too often. Otherwise you might just end up with an expired voucher after the 12- to 36-month period runs out.
- There’s no buyer’s remorse. It makes changing or canceling your travel plans much more palatable.
- You’re protected if you have an unpredictable schedule.
- You’re protected if you’re traveling for business and the client is covering the cost (or not).
- When you’re simply unsure about your dates, plans, etc.
Given Lockdown unpredictability, it’s important to note that much of this is subject to change. So, use this special report to learn about what variables to look for if you care about no-risk ticketing.
On American, Delta, and United websites, you can see what their refundable fares are when selecting your flights, allowing you to take control of your destiny. In the new world order, this can net some huge savings over traditional, exorbitantly priced refundable fares. All in just a click or two.
Sample of the New Refundable Fare Environment
Notice how Boston to London is only $400 dollars more.
Lowest Business Class Fare…
Lowest Refundable Business Class Fare…
Comparing the Big Three U.S. Carriers
Let’s take a look at some sample costs for the privilege of refundability.
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The News Isn’t All Good
Keep in mind that some routes offer low flexible fares and some do not. The lowest American Airlines Los Angeles-Tokyo fares are $6,354, while the lowest flexible fare is a whopping $18,502.
Lockdowns may have wound down, but we’re not out of the weeds or the madness just yet. Keep your eyes on airlines’ refundable fares to potentially net some big savings, protect yourself if plans change, and get some cold hard cash back in your pocket if you need to rebook your next vacation. There’s no telling how long this new refundable fare world will last, so take advantage while you can if it makes sense for you.