DECREASE IN FARE AFTER PURCHASE . IF A DECREASE OCCURS AFTER A TICKET IS PURCHASED AND PRIOR TO TRAVEL ONT THE TICKET OR A NEW FARE FOR WHICH THE PASSENGER QUALIFIES BECOMES EFFECTIVE THE DIFFERENCE IN FARES WILL BE CREDITED/REFUNDED PROVIDED . 1. THERE ARE NO CHANGES TO ORIGIN/DESTINATION/ STOPOVER POINTS/FLIGHTS/DATES.

I have never noticed this. Does it mean what it says? If I buy a ticket today for travel in May, and in April the same travel becomes available for $100 less, is the "credit/refund" provided directly to the credit card? As a TCV? In Spinzels?

based upon my (brief) experience with northwest, here's how to interpret that: yes, you get the difference credited back to you, BUT:

a) YOU have to notice that the fare for the EXACT SAME itinerary has dropped, and

b) YOU have to contact them in order to have the difference credited to you, and

c) you don't quite get the entire difference (i.e., there is a $25 "administrative fee" that applies each time you reduce your fare), and

d) you usually don't get your cash back, per se, but instead you'll likely receive a voucher good for the refunded amount, good toward the purchase of a future flight.

i think all airlines actually adhere to this policy (or, at least, one very similar to it). i have already taken advantage of this once with northwest, and i took advantage of it once (big-time) with a pair of tickets on us airways.

a good rule of thumb that i always try to follow: any time you hear in the press about another "big round of fare sales" or whatever, run through and re-price all your existing itineraries...you'll usually wind up finding somewhere that you can recoup some of your previously-spent money. even in the absence of any "fare sale" buzz in the media, it's a good idea to at least re-check your itineraries weekly.

-- he who slacks

I really do not understand, why US airlines are doing this. And I have never heard of anything like this outside the US.

I mean, both sides agreed on a contract. I am not aware that I can run into Walmart and require them to pay me the difference in the price today on what I paid a few weeks ago. IMHO this does not make sense for an airline.

This not only reduces revenue, but this also costs a lot of money in labor and other ressources.

You have a good point--after all, if the fare goes up, we wouldn't want the airline asking us for more money. However, many business operate this way. I'm not sure about Wal Mart, but lots of places will refund the difference on an item purchased in the last 2, 4, or 6 weeks (varying business by business) if it goes on sale. Most merchants that do this don't post/advertise this, but will take care of it if you ask.

FWIW, if you've upgraded that ticket with miles and the fare drops later, it's the TCV less the admin fee as well as the $50 WPs redeposit fee (for non-Plats) to redeposit the upgraded award and reissue it.

Really a pain in the arse if you ask me. Had a fare drop by $75, but would have required the admin fee plus the $50 fee.. wasn't quite worth all that hassle...

The policy makes sense. If you buy something at WalMart that isn't used and it goes on sale two weeks later, you can go to WalMart and get the difference refunded to you, in cash (or however you paid for the purchase in the first place). The reason they allow you to do this is that the stores can't stop you from returning an item at customer service and then going to buy the same exact item at the register for the discounted price.

Airlines operate in the same way. You've bought a ticket that you haven't used yet. If the price drops, the airlines can refund you the difference (minus an administration fee) in the form of a voucher. Makes perfect sense for the airline as you now have a travel voucher you have to use on their airline - hence, you will buy another ticket on their airline.

-RM

Interesting..

I was unable to find any information at nwa.com. Any links?
Where should I call for my "refund"???

Thanks.

The original ticket purchase is a contract (I pay the airline money, the airline promises to get me from point A to point B safely) but like most contracts, it can be renegotiated or nullified (refundable fares for example). Note that I didnt mention the time and the date in the first sentence, those terms can change, but like in most cases with a contract, the change can and will result in some sort of penalty. So if I make the change to get a lower fare, NWA has the right to charge me fees (for changing the terms) just as they can charge me the difference if I make a change to a higher priced fare. I see no problem in this at all.

Applying it to your Walmart example, the contract with Walmart is to buy a widget at a certain price, with the understanding that the widget will fit me or will work properly. If the widget doesnt work out as planned, and as long as I didnt violate the return policy (opening up software package for example). Then I have the right to return the item, and Wallmart has the right to compensate me for the item (whether that is cash, a credit, or a replacement - I dont know I shop Target ).

As to whether it happens in Europe or other places, I think that the difference there is the attitude of the consumer. In the US, for better or worse, the consumer expects to have the right to return an item or to demand better service. Since the US has an open market economy, companies like Walmart, Pottery Barn, Gap, etc. have to implement more flexible policies (at the risk of hurting their bottom line) to try to keep their consumers both loyal and happy.

Sorry for the long answer, but the topic was certainly interesting.

Josejsoe50

no way jose...

I've done this a few times. You are subject to a $25 fee and the rest is issued in an ECV, Electronic Credit Voucher. I've found now that I can go in and view my reservations on nwa.com. Click to change the reservation, go through the steps of choosing the same flights, same days, and it will show you the new price, show the difference in fare, take out the $25 and then click confirm and it will spit out a confirmation of your credit.

Plus you can then view all of your credits in one place on nwa.com (not sure if they show up if you make the change by phone with an agent). I think I read that you can combine these credits, but can only redeem one online, so if you combine, you have to call and make the reservation.

Airlines used to offer to price match themselves because otherwise people would tend not to buy tickets until fare sales (fare wars) occurred. This in turn made ticket sales and capacity planning erratic.

By offering the voucher as a refund the airlines kept passengers happy but also found that some people did not bother to ask for the voucher.

Now, more and more airlines are charging a change fee or administrative fee when passengers ask for a price match. This will cause a return to the days when passengers don't book as early hoping a fare sale will come along.

Travel tips:
http://members.aol.com/ajaynejr/travel.htm