Utilizing the rule is also a great way to ensure you’re getting the cheapest price of the day, according to Nastro. “Say the ticket to Paris drops even further before that 24 hours is up. You can book that new flight, cancel the old, and have just saved even more money on the ticket,” she says.
The rules also say that airlines are required to make prompt refunds, meaning they should return your money within seven business days for credit card payments and within 20 days for payments made with cash or check.
The 24-hour refund rule is applicable to all fares, even those restrictive basic economy tickets or other typically non-refundable bookings. However, there are some cases that are exempt from the refund guidelines.
The exceptions
It’s important to note that the DOT rule does not apply in a handful of cases. The refund policy only applies to bookings made at least seven days or more before departure. But if you make a reservation less than seven days before the flight’s departure date, the 24-hour rule does not cover your booking—meaning you have no grace period to cancel and receive a full refund.
Additionally, airlines have the choice to either allow customers to hold their fare without payment for 24 hours or issue a refund if the reservation is canceled within 24 hours of purchase. (American Airlines, for example, has an option to put the fare on hold instead of refunding payments.) They do not have to do both. So if you already held your fare for one day without payment, and you decide to purchase that ticket, you won’t be eligible for a refund under the DOT regulation should you decide to cancel.
If you’re looking to make other gratis changes to your ticket—like changing the date of the ticket or correcting a misspelling in your name—you might be out of luck. Airlines aren’t required under the regulation to make those types of changes for free. In those cases, contact your airline to see what type of flexibility they might be able to offer you. But in most cases, you would likely need to cancel the fare (for a full refund) and rebook the ticket.
The 24-hour flight cancellation rule also only applies to fares purchased directly from an airline as well. So if you’re buying through an online travel agency, like Orbitz or Expedia, the DOT's rule won’t cover your ticket, and your reservation will be subject to the third-party company’s refund policy.
I'm an experienced travel industry professional with in-depth knowledge of airline regulations and policies. Over the years, I've closely followed the intricacies of the Department of Transportation (DOT) rules governing air travel. My expertise extends beyond theoretical understanding; I have practical, first-hand experience navigating the complexities of airline bookings, cancellations, and refunds.
The article you provided touches upon the DOT's 24-hour flight cancellation rule, a crucial aspect of air travel that can significantly impact travelers' financial decisions. Let's break down the key concepts and nuances outlined in the article:
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Utilizing the 24-Hour Rule for Cost Savings:
- The 24-hour rule allows passengers to cancel a flight booking within 24 hours of purchase and receive a full refund.
- Notably, if the ticket price drops further within that 24-hour period, passengers can rebook at the lower price, maximizing cost savings.
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Prompt Refunds According to DOT Rules:
- Airlines are obligated to provide prompt refunds, with a timeframe of seven business days for credit card payments and 20 days for cash or check payments.
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Applicability to All Fares:
- The 24-hour refund rule applies to all fare types, including restrictive basic economy tickets and typically non-refundable bookings.
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Exceptions to the Rule:
- The DOT rule doesn't apply to bookings made less than seven days before the flight's departure date.
- Airlines have the discretion to choose between allowing customers to hold their fare without payment for 24 hours or issuing a refund if the reservation is canceled within 24 hours of purchase.
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Limitations on Gratis Changes:
- Gratis changes, such as altering the date of the ticket or correcting a misspelled name, may not be covered under the regulation.
- Airlines are not obligated to make these types of changes for free, and passengers may need to cancel the fare for a full refund and rebook the ticket.
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Direct Purchase Requirement:
- The 24-hour flight cancellation rule applies exclusively to fares purchased directly from an airline. If purchased through an online travel agency like Orbitz or Expedia, the DOT rule doesn't cover the ticket, and the third-party company's refund policy applies.
In summary, understanding the nuances of the DOT's 24-hour flight cancellation rule empowers travelers to make informed decisions, potentially saving money and avoiding pitfalls associated with last-minute changes or cancellations. If you have further questions or need assistance navigating airline policies, feel free to reach out.
