PilgrimsProgress

DOT clarified if the airline cancels a flight, a refund must be offered. How does this rule apply to a ticket that is booked through foreign OTA (India-based) for travel to the US? Was not able to find an answer after searching the forums. Thank you!

mmff

IANAL but if this hypothetical OTA has no presence (or assets) in the USA you will have a hard time making them comply with directives from the DOT.

garykung

OTA is irrelevant. The same rule applies.

The only problem is how you can push the OTA to comply.

Often1

No, it does not.

DOT only regulates commercial air carriers (in this context).

OP will need to request the refund, wait 7 days and likely file a chargeback with his credit card issuer (bank). He will likely need a copy of his e-ticket receipt, the cancellation notice, his request for a refund, and the denial of a refund (or some note that no response has been received).

Should be fairly cut & dry.

ft101

I've read different reports on this. The customer has paid the travel agent for a service (booking flights) and the TA has carried out their instructions/provided the service so no chargeback allowed. This third party in the transaction muddies the water and is another good reason for booking direct.

mmff

The TA is paid to make specific travel arrangements for specific destinations in specific dates. If those arrangements fall through because a third-party (e.g. airline, hotel) is unable to deliver the contracted service(s), the TA fails to provide the arrangements agreed upon (and paid for). Thus, the case for a credit card chargeback should be clear-cut in most jurisdictions.

(If I you prepay a lobster dinner for next month and at the time and date of the reservation the restaurant does not have any lobster, you are also also due a full refund. It does not matter what failed in the supply chain of the restaurant, you paid for a service that was not delivered to you as agreed upon at the time of payment.)

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garykung

True. So if it is a tour package, then it can be a SOL situation.

But if it is an air ticket only situation, then I beg to differ. Specifically, because OTAs do not issue the tickets per se (as they are issued by airlines), the issuing airlines ultimately is responsible. The job of OTA is to act on behalf of the airline, i.e. an agent. When IRROPS, airlines provide exception policies, these policies apply to OTA tickets as well. OTAs simply need to follow the airline's guidance to proceed.

DOT does not enforce its law over the OTAs (Yes - I agree that DOT lacks jurisdiction). Instead, DOT enforces its law over the airline who is ultimately for the ticket.

TBD

This, although some OTAs, including Expedia, do occasionally issue their own tickets.
But, to Gary's point, why would the OTA refuse to refund if they're only processing a request on your behalf with the airline? It isn't the OTA's money, so they don't have much to lose here.

Often1

It all depends on the specific transaction. But, as a general proposition, the TA only holds the funds for a very short period of time (or none at all). In the ordinary circumstance, one contacts the TA, it contacts the carrier for approval, and then issues the refund with the carrier's approval. Now, it either cannot get the approval because it is denied or the carrier is overwhelmed and does not respond. Thus, if the TA issues a refund, it is doing so with its own funds. For a low margin business, that means funds run out quickly.

This is where the chargeback comes in. If it is just an unflown air ticket, it is easy enough because the amount in question is the amount paid. If the ticket has been partially flown or it is a package, apportioning what is the air ticket can be harder. More importantly, some jurisdictions -- not the US -- do not permit partial chargebacks. My thought is if one cannot readily determine the amount, one does one's best and provides a justification for the amount.

The consumer has no way of knowing who holds the funds and at what point. But, the carrier and the TA can sort that with the card issuer and leave the consumer out of what amounts to a back office transaction.

TBD

Wouldn't the OTA only hold funds if the OTA acts at the merchant?
I have plenty of scenarios, although I don't think any with Expedia, where the agency just facilitates payment via ARC. The charge on my credit card is from the airline and the agency never touched the money.

In either case, though, fair point on the OTA being stuck in the middle if the airline doesn't respond or denies the refund.

PilgrimsProgress

In this case airline ticket was purchased from OTA, who charged my CC, so OTA is the merchant on my CC statement. OTA subsequently paid the airline (SQ) with a different CC which shows up on the ticket receipt. The ticket is issued on 618 SQ stock. The ticket was for flights on April 24 but all the segments were cancelled by the airline, who sent out cancellation emails.

I feel SQ should be required to comply with DOT rules and cannot avoid doing so simply because it sold its ticket through an OTA. I agree with the poster above that the OTA is merely acting as an agent of the airline. Apparently, SQ is being unresponsive to the OTA. I have followed through with the DOT. I am also talking to the CC issuer as the charge was made 10 months ago. We are talking several thousand dollars, and vouchers would be totally useless to us.

ft101

Not sure, the TA made the arrangements they were paid for (booked a ticket) and the airline who now has most of the money failed to deliver their bit. TA is clean. Your analogy fails as there's no agent involved when you pre-book/pre-pay the restaurant.

That's part of their business model to make money on changes or cancellations. Ordinarily it's pretty rare but nowadays it's massive and they stand to benefit hugely if nothing changes.

PilgrimsProgress

Well SQ just updated its policy to provide either refunds or travel credit depending on customer preference for tickets bought directly or from TA or another airline rendering my original question academic. I will believe it when i see it!

https://www.singaporeair.com/en_UK/s...t/?id=k8jxbjvz

garykung

Then do you know the ticket number prefix for Expedia?

(Not trying to argue. Really want to know...)

As I have said previously, Often1 was correct that DOT's does not have jurisdiction over TAs, but the airline. So the only thing a consumer can do is to push the issuing airline, which at that point the airline can either bypass the TA and issue the refund or can push the TA to act accordingly.

While I don't know the exact itinerary, IMHO, unless you are required to use a TA, or it is an itinerary that you can only get from TA, don't ever use a TA at all.

Years of reading these stories has taught me 1 thing only - things will always be messier with TAs.

k374

exactly... if I order something from an online shopping portal and they have to order it in turn from a supplier, the supplier does not deliver then the online shopping portal can't keep my money, LOL! If the contract isn't fulfilled down the line then it implies the contract with the consumer isn't fulfilled as well. If the airline refunds the fare the the refund is due to the passenger.