BA's predatory cancellation policy
#151
Join Date: Oct 2003
Location: Traveling the World
Posts: 6,072
Why is it sneering? The OP thinks they were treated unfairly by BA because they relied on the experience with U.S.-based airlines. The agent explained what needed to be done in order to use AA miles for an upgrade - to book with AA (and cancel the existing ticket). Agents do not have fare rules in front of them the minute they open your reservation. In some markets even I class ticket can be refunded with steep penalties, so seeing that it was I class (which I assume it was) would not have told the agent anything. It does not seem that the OP actually asked what the refund would be but just assumed that the value of the ticket would be preserved. It does not seem from the description of the conversation that a refund or cancellation rules were discussed - the call was more about the upgrade rules.
I don't think it matters who advised the OP to cancel and re-book with AA. The advice was correct - in order to use AA miles for an upgrade the ticket must be booked with AA. It was up to the OP to decide what to do. Explaining the upgrade rules does not amount to a promise of full refund.
I don't think it matters who advised the OP to cancel and re-book with AA. The advice was correct - in order to use AA miles for an upgrade the ticket must be booked with AA. It was up to the OP to decide what to do. Explaining the upgrade rules does not amount to a promise of full refund.
A friend could tell me go and book with their friend a travel agent. Guess what the trip is messed up and my friend gets a kickback for the reference. Guess who is not my friend? Sad but true. Advice is just that. No reason to be obligated to act on good or poor advice. Advice is just that guidance to help you make an educated decision. Its you who needs to learn how to critically wade through the good or poor advice.
Last edited by danielonn; May 22, 2017 at 2:53 pm
#152
Join Date: Oct 2003
Location: Traveling the World
Posts: 6,072
First, it is a fallacy that in the US market, "non-refundable" means that the ticket will not be refunded to the original form of payment, but rather converted into a credit less a penalty. While that is general practice, DL has had fully non-refundable/non-changeable fares for almost 3 years and both AA and UA have introduced these rock bottom fares as well. While they are far less common than what most here describe, the fact remains that this whole "local market practice" argument is rubbish.
Second, the BA rules are clear and concise and the final cancellation screen which OP himself questioned and then wrote off to a currency difference is a final warning for those who do not pay attention. I cannot think of anything more consumer friendly than terms and conditions that are clear and concise and then have a back stop which essentially says, "are you really sure? You are only going to receive a little bit of tax back."
Third, taking OP's recitation of what the agent said to him, it is true and it is not misleading. But, it is easy to get confused. That is why well-run organizations put these rules in writing. BA did so. OP clearly knew this and had multiple warnings which he chose to ignore.
The credit card chargeback dispute was a mistake. All this does is flag him in the future as a potential chargeback abuser. When something really is close to the line, this one will not help. For those who say that the issuers sometimes reverse themselves, that is true. But, in a case such as this where the contract terms are clear (and also specify that no agent has authority to vary them orally), the only way this changes is if the issuer values OP's business so much that it is prepared to eat the roughly $1,600 in question. An issuer might do this for some minor error, but this is a lot of money. While I have no idea how much of an HVC OP is, it's not likely sufficient to justify a US bank eating this much.
How to handle this differently?
- Read the terms. They are clear.
- Every e-ticket issued in the US must under DOT rules contain certain specific information in plain English in addition to a link to the fare rules. One of those items is are the refund & change rules. Read those. Even if you are flying a US carrier, the notion that there are no non-refundable fares is simply wrong.
- Listen and ask follow up questions. The agent provided the information which OP sought. But, how about, "if I cancel, will that be refunded?"
- When cancelling and you hit a screen which tells you how little you will receive back and a buddy tells you that $1,600 is the currency fluctuation, unless he is a currency arbitrage guy (and a good one at that), ignore.
Second, the BA rules are clear and concise and the final cancellation screen which OP himself questioned and then wrote off to a currency difference is a final warning for those who do not pay attention. I cannot think of anything more consumer friendly than terms and conditions that are clear and concise and then have a back stop which essentially says, "are you really sure? You are only going to receive a little bit of tax back."
Third, taking OP's recitation of what the agent said to him, it is true and it is not misleading. But, it is easy to get confused. That is why well-run organizations put these rules in writing. BA did so. OP clearly knew this and had multiple warnings which he chose to ignore.
The credit card chargeback dispute was a mistake. All this does is flag him in the future as a potential chargeback abuser. When something really is close to the line, this one will not help. For those who say that the issuers sometimes reverse themselves, that is true. But, in a case such as this where the contract terms are clear (and also specify that no agent has authority to vary them orally), the only way this changes is if the issuer values OP's business so much that it is prepared to eat the roughly $1,600 in question. An issuer might do this for some minor error, but this is a lot of money. While I have no idea how much of an HVC OP is, it's not likely sufficient to justify a US bank eating this much.
How to handle this differently?
- Read the terms. They are clear.
- Every e-ticket issued in the US must under DOT rules contain certain specific information in plain English in addition to a link to the fare rules. One of those items is are the refund & change rules. Read those. Even if you are flying a US carrier, the notion that there are no non-refundable fares is simply wrong.
- Listen and ask follow up questions. The agent provided the information which OP sought. But, how about, "if I cancel, will that be refunded?"
- When cancelling and you hit a screen which tells you how little you will receive back and a buddy tells you that $1,600 is the currency fluctuation, unless he is a currency arbitrage guy (and a good one at that), ignore.
#153
Join Date: Sep 2015
Programs: LH SEN; BA Gold
Posts: 8,405
The price of your ticket includes a carrier imposed charge or fuel surcharge, where applicable, per sector levied by the carrier. All taxes, fees and charges are to be paid by the member (not British Airways).
#154
Join Date: Sep 2010
Location: Las Vegas
Programs: BA Gold; Hilton Honors Diamond
Posts: 3,227
I wanted to chime in on the subject of what constitutes a refund / cancellation etc. For a lot of tickets in the US, including those issued by BA, the fare rules will include something along the lines of the following text:
RESERVATION CANCELLED PRIOR TO THE TICKETED
DEPARTURE TIME RETAINS TICKET VALUE FOR FUTURE
TRAVEL WITHIN THE TICKET VALIDITY AND CHANGE FEE
OR CANCELLATION FEE APPLIES UPON REISSUE/REFUND.
IF THE RESERVATION IS NOT CANCELLED PRIOR TO
TICKETED DEPARTURE TIME REBOOKING IS NOT
PERMITTED AND TICKET HAS NO VALUE AND ONLY UNUSED
TAXES WILL BE REFUNDED.
This will be in addition to anything concerning refunds - either that the ticket is non-refundable or that it is refundable for a fee etc.
The point here is that the ticket itself is not cancelled. The flight reservations are cancelled. The ticket value is retained as a credit against future flights.
Whether or not that would have been an option for the OP is a matter of conjecture.
RESERVATION CANCELLED PRIOR TO THE TICKETED
DEPARTURE TIME RETAINS TICKET VALUE FOR FUTURE
TRAVEL WITHIN THE TICKET VALIDITY AND CHANGE FEE
OR CANCELLATION FEE APPLIES UPON REISSUE/REFUND.
IF THE RESERVATION IS NOT CANCELLED PRIOR TO
TICKETED DEPARTURE TIME REBOOKING IS NOT
PERMITTED AND TICKET HAS NO VALUE AND ONLY UNUSED
TAXES WILL BE REFUNDED.
This will be in addition to anything concerning refunds - either that the ticket is non-refundable or that it is refundable for a fee etc.
The point here is that the ticket itself is not cancelled. The flight reservations are cancelled. The ticket value is retained as a credit against future flights.
Whether or not that would have been an option for the OP is a matter of conjecture.
#155
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Join Date: Jan 2002
Posts: 44,597
Straw man!
I'm discussing the abysmal level of customer care. You want to deflect this to talk about this customer's responsibility. Two different things.
Let me ask this. How would your view of the OP's situation differ if the representative HAD added the simple caution that he'd be losing his booking and would need to buy a second ticket if he did what he just asked about doing?
Would you be any less dismissive? You could hardly be more.
I'm discussing the abysmal level of customer care. You want to deflect this to talk about this customer's responsibility. Two different things.
Let me ask this. How would your view of the OP's situation differ if the representative HAD added the simple caution that he'd be losing his booking and would need to buy a second ticket if he did what he just asked about doing?
Would you be any less dismissive? You could hardly be more.
The person , however, seems to have just spoken to agent about rebooking with AA and then gone off and cancelled it on their own online whilst (a) being concerned about refund amount and (b) taking the advice of a friend rather than checking with BA
#156
A FlyerTalk Posting Legend
Join Date: Jan 2002
Posts: 44,597
I wanted to chime in on the subject of what constitutes a refund / cancellation etc. For a lot of tickets in the US, including those issued by BA, the fare rules will include something along the lines of the following text:
RESERVATION CANCELLED PRIOR TO THE TICKETED
DEPARTURE TIME RETAINS TICKET VALUE FOR FUTURE
TRAVEL WITHIN THE TICKET VALIDITY AND CHANGE FEE
OR CANCELLATION FEE APPLIES UPON REISSUE/REFUND.
IF THE RESERVATION IS NOT CANCELLED PRIOR TO
TICKETED DEPARTURE TIME REBOOKING IS NOT
PERMITTED AND TICKET HAS NO VALUE AND ONLY UNUSED
TAXES WILL BE REFUNDED.
This will be in addition to anything concerning refunds - either that the ticket is non-refundable or that it is refundable for a fee etc.
The point here is that the ticket itself is not cancelled. The flight reservations are cancelled. The ticket value is retained as a credit against future flights.
Whether or not that would have been an option for the OP is a matter of conjecture.
RESERVATION CANCELLED PRIOR TO THE TICKETED
DEPARTURE TIME RETAINS TICKET VALUE FOR FUTURE
TRAVEL WITHIN THE TICKET VALIDITY AND CHANGE FEE
OR CANCELLATION FEE APPLIES UPON REISSUE/REFUND.
IF THE RESERVATION IS NOT CANCELLED PRIOR TO
TICKETED DEPARTURE TIME REBOOKING IS NOT
PERMITTED AND TICKET HAS NO VALUE AND ONLY UNUSED
TAXES WILL BE REFUNDED.
This will be in addition to anything concerning refunds - either that the ticket is non-refundable or that it is refundable for a fee etc.
The point here is that the ticket itself is not cancelled. The flight reservations are cancelled. The ticket value is retained as a credit against future flights.
Whether or not that would have been an option for the OP is a matter of conjecture.
Looking at the PE fares for that route issued at that time, that text is not in the fare rules
Code:
CANCELLATIONS ANY TIME TICKET IS NON-REFUNDABLE.
Last edited by Dave Noble; May 22, 2017 at 2:48 pm
#157
Join Date: Oct 2003
Location: Traveling the World
Posts: 6,072
I wanted to chime in on the subject of what constitutes a refund / cancellation etc. For a lot of tickets in the US, including those issued by BA, the fare rules will include something along the lines of the following text:
RESERVATION CANCELLED PRIOR TO THE TICKETED
DEPARTURE TIME RETAINS TICKET VALUE FOR FUTURE
TRAVEL WITHIN THE TICKET VALIDITY AND CHANGE FEE
OR CANCELLATION FEE APPLIES UPON REISSUE/REFUND.
IF THE RESERVATION IS NOT CANCELLED PRIOR TO
TICKETED DEPARTURE TIME REBOOKING IS NOT
PERMITTED AND TICKET HAS NO VALUE AND ONLY UNUSED
TAXES WILL BE REFUNDED.
This will be in addition to anything concerning refunds - either that the ticket is non-refundable or that it is refundable for a fee etc.
The point here is that the ticket itself is not cancelled. The flight reservations are cancelled. The ticket value is retained as a credit against future flights.
Whether or not that would have been an option for the OP is a matter of conjecture.
RESERVATION CANCELLED PRIOR TO THE TICKETED
DEPARTURE TIME RETAINS TICKET VALUE FOR FUTURE
TRAVEL WITHIN THE TICKET VALIDITY AND CHANGE FEE
OR CANCELLATION FEE APPLIES UPON REISSUE/REFUND.
IF THE RESERVATION IS NOT CANCELLED PRIOR TO
TICKETED DEPARTURE TIME REBOOKING IS NOT
PERMITTED AND TICKET HAS NO VALUE AND ONLY UNUSED
TAXES WILL BE REFUNDED.
This will be in addition to anything concerning refunds - either that the ticket is non-refundable or that it is refundable for a fee etc.
The point here is that the ticket itself is not cancelled. The flight reservations are cancelled. The ticket value is retained as a credit against future flights.
Whether or not that would have been an option for the OP is a matter of conjecture.
#158
Join Date: Oct 2003
Location: Traveling the World
Posts: 6,072
if he had asked what the penalty to cancel would be or if he had asked the agent to cancel the booking and the agent decided to not tell the person, then I would feel that there was an issue in the service
The person , however, seems to have just spoken to agent about rebooking with AA and then gone off and cancelled it on their own online whilst (a) being concerned about refund amount and (b) taking the advice of a friend rather than checking with BA
The person , however, seems to have just spoken to agent about rebooking with AA and then gone off and cancelled it on their own online whilst (a) being concerned about refund amount and (b) taking the advice of a friend rather than checking with BA
#159
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Analogies never work.
OP, by his own admission, knew that there was an issue with the refund and chose to ask a friend rather than BA, what it meant. The friend told him that the language likely referred to the exchange rate.
The friend was wrong. The friend was $1,800 wrong.
This is where one picks up the phone and calls BA. Perhaps BA ought to be held liable for not including a disclosure to the effect: "if a numpty friend of yours gives you advice on BA's fare rules, you should ignore it and instead call BA."
Whether the amount of the refund is accurate is irrelevant. The fact is that until OP had an answer, he took the risk of his rash action with a ticket which he knew to be non-refundable.
OP, by his own admission, knew that there was an issue with the refund and chose to ask a friend rather than BA, what it meant. The friend told him that the language likely referred to the exchange rate.
The friend was wrong. The friend was $1,800 wrong.
This is where one picks up the phone and calls BA. Perhaps BA ought to be held liable for not including a disclosure to the effect: "if a numpty friend of yours gives you advice on BA's fare rules, you should ignore it and instead call BA."
Whether the amount of the refund is accurate is irrelevant. The fact is that until OP had an answer, he took the risk of his rash action with a ticket which he knew to be non-refundable.
#160
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Location: Minneapolis: DL DM charter 2.3MM
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Posts: 100,409
I wanted to chime in on the subject of what constitutes a refund / cancellation etc. For a lot of tickets in the US, including those issued by BA, the fare rules will include something along the lines of the following text:
RESERVATION CANCELLED PRIOR TO THE TICKETED
DEPARTURE TIME RETAINS TICKET VALUE FOR FUTURE
TRAVEL WITHIN THE TICKET VALIDITY AND CHANGE FEE
OR CANCELLATION FEE APPLIES UPON REISSUE/REFUND.
IF THE RESERVATION IS NOT CANCELLED PRIOR TO
TICKETED DEPARTURE TIME REBOOKING IS NOT
PERMITTED AND TICKET HAS NO VALUE AND ONLY UNUSED
TAXES WILL BE REFUNDED.
This will be in addition to anything concerning refunds - either that the ticket is non-refundable or that it is refundable for a fee etc.
The point here is that the ticket itself is not cancelled. The flight reservations are cancelled. The ticket value is retained as a credit against future flights.
Whether or not that would have been an option for the OP is a matter of conjecture.
RESERVATION CANCELLED PRIOR TO THE TICKETED
DEPARTURE TIME RETAINS TICKET VALUE FOR FUTURE
TRAVEL WITHIN THE TICKET VALIDITY AND CHANGE FEE
OR CANCELLATION FEE APPLIES UPON REISSUE/REFUND.
IF THE RESERVATION IS NOT CANCELLED PRIOR TO
TICKETED DEPARTURE TIME REBOOKING IS NOT
PERMITTED AND TICKET HAS NO VALUE AND ONLY UNUSED
TAXES WILL BE REFUNDED.
This will be in addition to anything concerning refunds - either that the ticket is non-refundable or that it is refundable for a fee etc.
The point here is that the ticket itself is not cancelled. The flight reservations are cancelled. The ticket value is retained as a credit against future flights.
Whether or not that would have been an option for the OP is a matter of conjecture.
This is generally true for AF and KLM tickets exUSA and also for DL tickets using AF/KLM flights, regardless of whether they're sold as DL codeshares or not. Unfortunately I've never looked at DL tickets for VS flights to LHR or VS tickets on this route (using either DL or VS metal and regardless of whether the flights are sold as codeshares). [However, DL seems generally to allow the credit even if the ticket isn't cancelled before departure.]
OTOH, I have seen a few reports of DL RT TATL tickets exEU that have the harsher "use it or lose it" fare rules that say the entire value of the ticket is forfeited if the flights are not flown exactly as ticketed. Like BA, when AF/KLM/VS sell TATL RTs from Europe to the USA, they commonly have such fare rules unless one buys an expensive refundable ticket.
IMO it's not unreasonable to expect someone purchasing a ticket in the USA for a RT exUSA to Europe to assume that the standard rules about a credit minus a change fee would apply. Of course we shouldn't assume, but only travel experts would know that tickets from Europe usually have very different rules. Moreover, BA isn't (yet) a LCC and a $2000 TATL RT is not likely to be a deeply discounted fare, although if speculations here are correct, it could be a premium economy ticket in the lowest fare class for that cabin. By this reasoning, I would expect the fare rules to be similar to what I see when I purchase a deeply discounted business class ticket on DL/AF/KLM, namely a change fee of about $400-500, but still being able to use the credit for myself later on a ticket that is called nonrefundable. Yes, I know that one shouldn't assume and should check the fare rules, but again, a novice traveler would know to do this and probably would have a hard time understanding those fare rules, even if they can be found.
To me, a key aspect of the story is the OP asking the BA phone agent "SHOULD I cancel the ticket [and repurchase a new ticket on AA to get the upgrade]?" Surely any phone agent realizes, when not dealing with someone who has purchased a very expensive full J/C or full F ticket, that most people would want to think twice before throwing away $1800 in order to buy an entirely new ticket So as to get a one cabin upgrade on what's probably about a nine hour flight. At this point, the BA agent *should* have said something about the likely total cost of such a strategy or warned the OP about how much money would probably be lost on the original ticket. The agent doesn't need to look at the precise fare rules or calculate the exact refund to do this, just to apply some common sense and say "well, maybe you shouldn't do this because it will be very expensive."
Nevertheless, I have two questions:
***Would it have been possible to pay more money to BA to upfare the ticket to discounted business class? Would a nonrefundable ticket permit this, even with a fee? If so, would this potentially have been cheaper than totally abandoning the $2000 ticket and purchasing a new ticket from AA for the upgrade? [Again, I'm asking because it would typically be possible with a DL/AF/KLM RT to Europe exUSA, and even without paying a change fee, only the fare difference.]
***Is there any chance that the OP indeed does have the usual exUSA style credit sitting in BA's computer system somewhere, attached to the ticket number perhaps? BA refunded the taxes to the original form of payment, which seems to be required by British law, but do we know for sure that the OP doesn't have the more typical exUSA style fare rules allowing for remaining funds after a change penalty to be applied to another BA ticket within a year of the original purchase? [AFAIK the OP has never posted the fare code, fare class, or even stated whether it was a WT or WT+ ticket.]
Last edited by MSPeconomist; May 22, 2017 at 3:10 pm
#161
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Join Date: Jan 2002
Posts: 44,597
***Would it have been possible to pay more money to BA to upfare the ticket to discounted business class? Would a nonrefundable ticket permit this, even with a fee? If so, would this potentially have been cheaper than totally abandoning the $2000 ticket and purchasing a new ticket from AA for the upgrade? [Again, I'm asking because it would typically be possible with a DL/AF/KLM RT to Europe exUSA, and even without paying a change fee, only the fare difference.]
It would seem that the passenger may well have not even checked for award availability for the date before going through cancellation process - there seems to be no awards for that day anyway
***Is there any chance that the OP indeed does have the usual exUSA style credit sitting in BA's computer system somewhere, attached to the ticket number perhaps? BA refunded the taxes to the original form of payment, which seems to be required by British law, but do we know for sure that the OP doesn't have the more typical exUSA style fare rules allowing for remaining funds after a change penalty to be applied to another BA ticket within a year of the original purchase? [AFAIK the OP has never posted the fare code, fare class, or even stated whether it was a WT or WT+ ticket.]
#162
Join Date: Sep 2010
Location: Las Vegas
Programs: BA Gold; Hilton Honors Diamond
Posts: 3,227
Looking at the PE fares for that route issued at that time, that text is not in the fare rules
The cheapest 1st class show a $375 penalty, business class shows a $250 cancellation penalty, the economy ones show as non refundable; none of the cheapest AUS-LHR r/t fares in each class for June , sold in July show a provision for using the value later
Code:
CANCELLATIONS ANY TIME TICKET IS NON-REFUNDABLE.
#163
Join Date: Nov 2011
Location: West Coast, USA
Programs: Skywards Platinum
Posts: 3,747
Being US based for years, I also am used to the US-way of handling non-refundable cancellations: cancellations result in a calculation of "original cost less change fee" held as a credit for one year. I can apply this to a future fare.
I had a rude awaking when I discovered that this wasn't true with BA (or VS) reservations, and got burnt one or two times. One underlying problem is that BA doesn't expose the full fare rules to a purchaser - only a summary, which can be misleading or incomplete.
By the way, I recently tried to get around this by calling AA to book a BA-operated flight under its AA flight number. Same restrictions as if I had booked directly with BA. One difference though was that the AA customer service person took the time to explain this all to me before booking.
I had a rude awaking when I discovered that this wasn't true with BA (or VS) reservations, and got burnt one or two times. One underlying problem is that BA doesn't expose the full fare rules to a purchaser - only a summary, which can be misleading or incomplete.
By the way, I recently tried to get around this by calling AA to book a BA-operated flight under its AA flight number. Same restrictions as if I had booked directly with BA. One difference though was that the AA customer service person took the time to explain this all to me before booking.
#164
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However, if you purchased the ticket from AA (with AA codeshare flight numbers for BA operated flights?), that might make all the difference.
#165
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Join Date: Jan 2002
Posts: 44,597
The SHX2D1C1/DIF2 was $1259 which comes to $1821. The next fare up is SHX2S1C1/DIF2 at $1309 which comes to $1871. Other PE fares exceed $1900
Both are non refundable with no credit held for later use
The AA codeshares for those prices have the same penalties
Last edited by Dave Noble; May 22, 2017 at 4:11 pm