Alaska Eliminates Change Fees (9/1/2020)
#91
Join Date: Mar 2017
Location: British Columbia
Programs: AS MVPG100K, Marriott Marriott Titanium Elite, Hilton Gold
Posts: 7,263
It is fairly obvious to me, at least, given the way Alaska's wallet functions, and the competitor's rules on this, that a "change" where future plans are not known, but must occur within the original ticket validity period (or what one might call a "cancellation" without a refund), will be permitted under the new policy.
I realize there are some instances where a carrier charges a "cancellation" at the time original plans are cancelled, but it's pretty much the industry standard that one is able to cancel a reservation and pay any applicable penalties when tickets are exchanged for new travel. I am fairly certain AS will send an electronic ticket record instead of issuing a wallet credit net of the "cancellation fee" as policy stands today, which will defer any penalties until travel is rescheduled. Travel agency tickets work the same way--penalty applied at time of exchange, not cancellation of the reservation.
I realize there are some instances where a carrier charges a "cancellation" at the time original plans are cancelled, but it's pretty much the industry standard that one is able to cancel a reservation and pay any applicable penalties when tickets are exchanged for new travel. I am fairly certain AS will send an electronic ticket record instead of issuing a wallet credit net of the "cancellation fee" as policy stands today, which will defer any penalties until travel is rescheduled. Travel agency tickets work the same way--penalty applied at time of exchange, not cancellation of the reservation.
A ticket change is not the same thing as a ticket cancellation! AS has not said that they are removing cancellation fees, permanently. The current cancellation fee is $125, the same as the change fee was. AS could change the cancellation fee to any amount they see fit, even $0. While a $0 cancellation fee would effect the utility of waived change & cancellation fees that Gold Level Elite members enjoy for everyone, it doesn't guarantee
permanence. Simply announcing an increase in the cancellation fee, even to $25, would effectively impose a fee on unallowable changes, a fee that Gold Level Elite members would still have waived. Imposing a cancellation fee, even at $0, is very much different than permanently removing that fee.
Implemented with the CARES act, nobody is paying the 7.5% Excise tax on commercial passenger service. Does that mean they permanently removed the tax? Of course not, the tax is still imposed but the imposed tax is currently zero percent.
James
#93
Join Date: Oct 2014
Location: SEA
Posts: 2,021
A bottle of water that costs me $0 is free.
#94
Join Date: Jun 2005
Programs: AS MVPG
Posts: 2,206
Until there is clarification or the actual policies are in place, we don't know what keeping the cancellation fee means at the moment.
#95
Join Date: Mar 2017
Location: British Columbia
Programs: AS MVPG100K, Marriott Marriott Titanium Elite, Hilton Gold
Posts: 7,263
"You are saying that Alaska is going to lower the cancelation fee to $0 instead of simply removing the fee?"
Here's the "thing!" AS has never said they are removing the cancellation fee. AS has two fees. 1) A change fee & 2) A cancellation fee. Both of those fees are $125, separate and independent of each other. When we talk about fee waivers for Gold Level Elites, the change/cancel waiver covers both fees as appropriate.
Everyone probably knows that you can change or cancel a ticket free of charge within 24 hours of purchase. Many may not know that if you change the ticket you cannot also cancel the ticket within that 24 hour window fee free. The $125 cancellation fee would apply because the "one" fee waiver was consumed on the change.
So what do we know? AS is removing change fees, permanently! That is it! Nothing more! If you think that means you can also cancel a ticket without a fee, you are likely to be disappointed.
"Even if they did that... who cares. $0 fee = no fee"
Nobody, I guess, until the fee is no longer $0. The current waivers have temporarily reduced both the change fee and the cancellation fee to $0. Hence "waivers," (plural) not a single all encompassing waiver (singular) are currently in effect. We know AS has removed the change fee permanently but what happens to the temporary $0 cancellation fee once that waiver expires?
Why the need for any waivers now if the permanent removal of the change fee means what you "think" it means? If it did, then a, "we have removed change fees on Main & First Class tickets permanently, Saver ticket changes will be allowed through December 31st, 2020," should suffice, shouldn't it?
Oh! A bottle of water to you without a charge, isn't without a cost! Think about that!
James
Last edited by Flying for Fun; Sep 4, 2020 at 3:38 am
#96
Join Date: Apr 2009
Location: YYF/YLW
Programs: AA, DL, AS, VA, WS Silver
Posts: 5,951
It’s the difference between keeping the toll booths in place on a highway but setting the toll to $0 and completely removing the toll booths. It’s significantly easier to reinstate non-zero tolls in the first case than in the second. Obviously not impossible in either case, but more difficult.
#97
Join Date: Dec 1999
Location: NYC/PHX
Programs: IATA, Sabre, AvgeekAgent
Posts: 1,958
Under the curent policy, the current "cancellation" fee ONLY applies if a passenger want to exchange the ticket's value for a wallet credit, less the "cancellation" penalty.
Otherwise, the reservation can be cancelled and the passenger may exchange the ticket for future travel at full value, less the penalty at a later date.
From my perspective as a travel agent, It simply makes no sense that AS will require anyone to rebook immediately to avoid a fee for taking wallet credit, since the penalty can be deferred by retaining the ticket (vs accepting a wallet credit) until it is used later. Since there are now no "change fees", the change penalty is now ZERO.
Hypothetical phone conversation if "cancel fee" still applies:
AS agent: "I can cancel your reservation and ticket for $[125] and deposit the residual amount in your alaska.com wallet for future use, or I can cancel your reservation and you can exchange your ticket for travel within one year without a penalty".
Passenger: "Ummm, I guess I'll exchange it later"
AS agent: "OK, great!, I will email a copy of your original receipt. You will need the 13 digit ticket number to exchange the ticket when you're ready to travel".
Passenger: "OK, why is there a fee for the first scenario, but not the second?"
AS agent: "I know it's confusing, but the company has waived ticket change fees, but not the cancellation fee for receiving a wallet credit. I apologize. We are constantly telling management that passengers are perplexed by this."
Passenger: "Oh well, as long as I can reuse the ticket without a fee later, I guess it's the same thing. Thanks!"
...If this is the customer service nightmare AS chooses to pursue, I will be very, very shocked.
Otherwise, the reservation can be cancelled and the passenger may exchange the ticket for future travel at full value, less the penalty at a later date.
From my perspective as a travel agent, It simply makes no sense that AS will require anyone to rebook immediately to avoid a fee for taking wallet credit, since the penalty can be deferred by retaining the ticket (vs accepting a wallet credit) until it is used later. Since there are now no "change fees", the change penalty is now ZERO.
Hypothetical phone conversation if "cancel fee" still applies:
AS agent: "I can cancel your reservation and ticket for $[125] and deposit the residual amount in your alaska.com wallet for future use, or I can cancel your reservation and you can exchange your ticket for travel within one year without a penalty".
Passenger: "Ummm, I guess I'll exchange it later"
AS agent: "OK, great!, I will email a copy of your original receipt. You will need the 13 digit ticket number to exchange the ticket when you're ready to travel".
Passenger: "OK, why is there a fee for the first scenario, but not the second?"
AS agent: "I know it's confusing, but the company has waived ticket change fees, but not the cancellation fee for receiving a wallet credit. I apologize. We are constantly telling management that passengers are perplexed by this."
Passenger: "Oh well, as long as I can reuse the ticket without a fee later, I guess it's the same thing. Thanks!"
...If this is the customer service nightmare AS chooses to pursue, I will be very, very shocked.
#98
Join Date: Apr 2009
Location: YYF/YLW
Programs: AA, DL, AS, VA, WS Silver
Posts: 5,951
Hypothetical phone conversation if "cancel fee" still applies:
AS agent: "I can cancel your reservation and ticket for $[125] and deposit the residual amount in your alaska.com wallet for future use, or I can cancel your reservation and you can exchange your ticket for travel within one year without a penalty".
AS agent: "I can cancel your reservation and ticket for $[125] and deposit the residual amount in your alaska.com wallet for future use, or I can cancel your reservation and you can exchange your ticket for travel within one year without a penalty".
#99
Join Date: Mar 2017
Location: British Columbia
Programs: AS MVPG100K, Marriott Marriott Titanium Elite, Hilton Gold
Posts: 7,263
Under the curent policy, the current "cancellation" fee ONLY applies if a passenger want to exchange the ticket's value for a wallet credit, less the "cancellation" penalty.
Otherwise, the reservation can be cancelled and the passenger may exchange the ticket for future travel at full value, less the penalty at a later date.
From my perspective as a travel agent, It simply makes no sense that AS will require anyone to rebook immediately to avoid a fee for taking wallet credit, since the penalty can be deferred by retaining the ticket (vs accepting a wallet credit) until it is used later. Since there are now no "change fees", the change penalty is now ZERO.
Otherwise, the reservation can be cancelled and the passenger may exchange the ticket for future travel at full value, less the penalty at a later date.
From my perspective as a travel agent, It simply makes no sense that AS will require anyone to rebook immediately to avoid a fee for taking wallet credit, since the penalty can be deferred by retaining the ticket (vs accepting a wallet credit) until it is used later. Since there are now no "change fees", the change penalty is now ZERO.
Another Hypothetical phone conversation if "cancel fee" still applies:
AS agent: "I can cancel your reservation and ticket for $[125] and deposit the residual amount in your alaska.com wallet for future use, this affords you the greatest flexibilty, or I can
Passenger: "I am not sure I will be able to use my reservation at a later date, can I exchange my ticket and let someone else fly?"
AS agent: No, changing the name on the exchanged ticket is not permitted. If you cancel your ticket, I can deposit the funds, less the cancellation fee of $X into your wallet and you can purchase a new ticket in a different name."
Passenger: "Ummm, I guess I'll exchange it later"
AS agent: "OK, great!, I will email a copy of your original receipt. You will need the 13 digit ticket number to exchange the ticket when you're ready to travel". "Please be aware that the exchanged ticket must be for the same passenger(s) and will be subject to any fare difference. The ticket also has no risidual value once it is exchanged. If the new ticket has a higher fare, we will need to collect the difference when you exchage it and you can use any wallet funds you may have at that time. If the new ticket has a lower fare, no credit will be provided and the unused value will be forfeited."
Passenger: "OK, why is there a fee for the first scenario, but not the second?"
AS agent: "We understand that changes can happen and you may not be able to travel as ticketed. For peace of mind, AS has removed change fees so that you have some flexibility even if you don't know when or where you will be traveling now. If your ticket isn't eligible for a change or you have multiple tickets that you may not be able to use, you can "cancel" those tickets and deposit the ticket value, less the $X cancellation fee, into your wallet. This will give you greater flexibilty.
Passenger: "Oh well, as long as I can reuse the ticket without a fee later, I guess it's the same thing."
...If this is the customer service nightmare AS chooses to pursue, I will be very, very shocked.
It is all Hypothetical until we know what constitues an "allowable" change where the fee has been removed, permanently. I don't think the intent is to reintroduce a "price guarantee."
James
#100
Join Date: Mar 2017
Location: British Columbia
Programs: AS MVPG100K, Marriott Marriott Titanium Elite, Hilton Gold
Posts: 7,263
And I don't know specifically about Alaska, but isn't it generally true that the cancellation fee has to be new money, not deducted from the residual value? So the part of the conversation you didn't include is if the customer really wants the funds in the wallet, for a $300 ticket, instead of getting $175 in the wallet, the agent asks for the credit card to charge $125 and then puts $300 in the wallet. That would be a very real difference between a cancellation and change fee if AS does keep it (which I agree is unlikely).
It is like the late night "medical coverage" commericials where the announcer finally declares authoritatively "IT'S FREE" call now. The coverage isn't free, but the call is. As long as they don't charge to take your call, its free, right?
What does removing change fees, permanently really mean?
James
#102
Join Date: Aug 2004
Location: SAT
Programs: AA EXP BA Gold, TK Gold, Hyatt Globalist, Hilton Diamond, AS 100K, QR PLT, SAS Gold, IHG Spire, AMR
Posts: 5,898
I am curious about that myself. If partner awards are covered, I would start making 2021 booklings now
#103
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,721
its OT but I support bag fees. These are super easy to avoid (either with elite status or a credit card) and the fees rack up millions per year which means fares are lower for the rest of us. Plus I rarely check luggage anyway.
#104
Join Date: Mar 2017
Location: British Columbia
Programs: AS MVPG100K, Marriott Marriott Titanium Elite, Hilton Gold
Posts: 7,263
..... back!
Change & cancellation fees generate billions of dollars in revenue annually for US airlines. Ultimately something has to replace that, most likely increased fares. Even $5 on 50% of AS' last year's passenger volume would generate $110,000,000. Reducing the chesse platter size by 7g (¼ oz) could also save millions over the year.
James.
#105
Join Date: Apr 2009
Location: YYF/YLW
Programs: AA, DL, AS, VA, WS Silver
Posts: 5,951
Kinda sorta back on topic: That network difference is of course why AS made the elimination of the change fee apply to all AS flights instead of just domestic (United) or domestic plus itemized short haul international flights (AA and DL).