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US DOT: 24 hour cancellation (flights) doesn't apply to Online Travel Agencies

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Old May 21, 2015, 6:34 pm
  #1  
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US DOT: 24 hour cancellation (flights) doesn't apply to Online Travel Agencies

Wow, definitely learned a lesson today. Last night I purchased 2 round trip airline tickets from New York to Iguassu Falls Brazil with Priceline flying with LAN Airlines. With the possibility of the tickets being a price error and spreading like wild fire on the travel forums, buy now think later kicked in, plus you always have 24 hours to cancel right? (according to the USA DOT). Well it turns out I couldn't make it work for the dates, and I attempted to cancel this morning (well within 24 hours) which turned out to be a massive headache.

Priceline's cancellation policy is as follows:
"The ability to change or cancel your airline tickets is dependent on the type of ticket you purchase. Cancel and change rules vary by airline and fare purchased. The airline fares rules associated with your flight can be reviewed pre-purchase on your contract and post purchase within the itinerary displayed on our website.

If cancellations are permitted, a link to cancel may be available within your itinerary or you can call us to complete the cancellation for you."

http://www.priceline.com/customerser...?question=1248

I looked everywhere on Priceline, there's nowhere on their website that states they have a 24 hour cancellation policy, other then random blogs on the internet that say they do (like Dan's Deals: http://www.dansdeals.com/archives/59196) and other people on Flyertalk, including a few posts in the actual travel deal thread:

http://www.flyertalk.com/forum/milea...igu-falls.html

Anyways, I spent hours on the phone this morning, Priceline quoting that they adhere only to the airline's policies on refunds, and on LAN's website and fare rules the RT tickets I purchased were non-refundable tickets, with absolutely no lee-way. They also say that the travel agency isn't obligated to follow the US DOT policy on 24 hour free cancellation on airfare.

When I called LAN a few times each time they replied, all cancellations has to go through your travel agent. LAN cannot process the refund. One LAN operator I spoke with though admitted they actually follow the US DOT 24 hour cancellation policy but LAN is currently in the process of updating their fare policies and the policy is nowhere to be found on their website/fare rules.

Then I complained to the US DOT and to my surprise got the following response:

"This responds to your communication regarding Lan Airlines and Priceline. Based on the information you have provided, your complaint appears not to fall under the Department's rules as the 24 hour cancellation policy doesn't currently apply to Online Travel Agencies (OTAs)."

WOW! How come nobody states warnings about this online? Online Travel agents like Priceline, Expedia, Cheapoair, etc are exempted from the US DOT 24 hour cancellation policy?

There seems to be lots of miscommunication about this online, and of course I got suckered in because of an extraordinary low fare that could only be bookable on OTA's (the low fare wasn't available on LAN's website).

I tried Priceline a couple times again, and got two agents (separate times) to talk to LAN airlines. The first priceline agent came back on, and said that LAN won't budge, stating its a non-refundable ticket. The second Priceline agent that called a couple hours later spoke to a LAN agent who said to call back 4 hours later so they can work something out. So I call Priceline 4 hours later, get that new agent to talk to LAN which finally said they will make "a one time exception", cancel my tickets and get a full refund.

Estimated time on the phone: roughly 3 hours lol, most of that time on hold.

It took a long time but at least I got my tickets cancelled and issued a full refund.
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Old May 21, 2015, 7:10 pm
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Why didn't you just use the cancel link that you can reach from your confirmation email?

I booked a JFK-IGU ticket on LAN as well and used that link to cancel fee-free. I even posted a screenshot of the cancel screen and policy:
http://www.dansdeals.com/archives/66307
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Old May 21, 2015, 7:11 pm
  #3  
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You're lucky. It was a hassle, but you got your refund eventually with not penalties.

Sometimes nagging works.

Lesson learned: Impulse buying is risky.
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Old May 21, 2015, 7:12 pm
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US DOT: 24 hour cancellation (flights) doesn't apply to Online Travel Agencies

In the US the airlines either offer a 24 hour hold or a 24 hour cancellation policy. Always check the airline you are booking with to avoid an expensive lesson. I've heard stories about people booking tickets with an airline that only offered a 24 hour hold feature and when they tried to cancel within 24 hours they were out of luck. Glad yours was resolved.
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Old May 21, 2015, 7:37 pm
  #5  
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US DOT: 24 hour cancellation (flights) doesn't apply to Online Travel Agencies

The fare was actually available on LAN website too
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Old May 21, 2015, 7:58 pm
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The DOT states that this rule applies to "each U.S. and foreign air carrier that has a website marketed to U.S. consumers," so as you've found, it doesn't apply to OTAs or other travel agencies.

Even so, some travel agencies voluntarily offer a similar refund rule as a matter of policy (and then only for some airlines but not others), so if you purchase through a travel agency (OTA or otherwise), you have to find out their specific policy on refunds for the itinerary you wish to purchase.

The last time I purchased a ticket from an OTA and was due a refund, it resulted in a similar round of finger-pointing between the OTA and the airline. I always try to buy tickets directly whenever possible. Glad you were able to (finally) get Priceline to refund your ticket!
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Old May 21, 2015, 8:08 pm
  #7  
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I bought some DL tix on Orbitz about a month ago just after midnight and had nearly 36 hours to cancel.

It may depend some on the airline.
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Old May 21, 2015, 8:10 pm
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There is nothing new in this thread. Yet one more person who thinks there is a rule when there isn't. DOT does cannot and does not regulate TA's, online or not, and thus the rule never has and never will apply to TA's.

Additionally, it does not apply to carriers unless booked through a carrier channel, e.g. website or phone center.

OP is a very lucky person.
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Old May 21, 2015, 8:25 pm
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US DOT: 24 hour cancellation (flights) doesn't apply to Online Travel Agencies

I think what the OP doesn't understand is that the Department of Transportation does not regulate travel agencies, and thus cannot force a non regulated entity to give you your money back. Travel agencies are typically regulated by cities or states.
It should be a lesson to you not to assume a website has a 24 hour cancellation policy.
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Old May 21, 2015, 8:33 pm
  #10  
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This thread is of high relevance to FlyerTalk's dedicated forum on online booking and bidding agencies. I'll move this to that forum. Ocn Vw 1K, Moderator, TravelBuzz.
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Old May 22, 2015, 3:24 am
  #11  
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So airlines serving the U.S. can skirt the refund/hold rule by having reservations handled by a related party that is its own corporation, even if the airline wholly owns the reservation booking company? Let's see how long it is until they go that way.

Travel agents are what, if not sometimes an agent for the airline?

Originally Posted by Doc Savage
I bought some DL tix on Orbitz about a month ago just after midnight and had nearly 36 hours to cancel.

It may depend some on the airline.
Yes.
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Old May 22, 2015, 8:58 am
  #12  
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Originally Posted by GUWonder
So airlines serving the U.S. can skirt the refund/hold rule by having reservations handled by a related party that is its own corporation, even if the airline wholly owns the reservation booking company? Let's see how long it is until they go that way.

Travel agents are what, if not sometimes an agent for the airline?



Yes.
That would be interesting. Please don't give DL any ideas.
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