Why is Air non-refundable

[FierceAXBoi]

I understand certain vacation offers or cruises may not be. The way I see it things happen and people have to cancel plans. I paid $218 for my plane ticket to NYC now if I canceled it I am sure someone would buy it and at todays rate AA would make an additional $150. Chances are better then avarage that my seat will be sold. Just like things happen that cause me to cancel well things happen that cause people to have to fly last minute. So i was wondering if perhaps a T/A or someone who knows about Airlnes cuold explain

[greatam]

I understand certain vacation offers or cruises may not be. The way I see it things happen and people have to cancel plans. I paid $218 for my plane ticket to NYC now if I canceled it I am sure someone would buy it and at todays rate AA would make an additional $150. Chances are better then avarage that my seat will be sold. Just like things happen that cause me to cancel well things happen that cause people to have to fly last minute. So i was wondering if perhaps a T/A or someone who knows about Airlnes cuold explain

 

You can buy fully refundable tickets. They are much higher priced.

 

Can you imagine the nightmare for scheduling and loss of revenue if the airlines allowed all tickets to be refundable? Oversold flights/undersold flights/changed flights-a total nightmare for all, including pax. Last minute cancellations are one of many reasons to purchase travel insurance.

[Sthitch]

Non-refundable tickets are less risky for the airlines; therefore they can sell them for less. They are less risky because they already have your money, and know that they will have to provide service for it. Refundable tickets carry a certain amount of risk to the airline because they might have to reverse a charge and either fly with an empty seat, or resell it and incur an additional sales cost, so to mitigate this risk they make the purchaser share in it by charging more money.

[gizmo]

There is only one real answer. $$$$ for the airline ;)

[mahdnc]

Can you imagine the nightmare for scheduling and loss of revenue if the airlines allowed all tickets to be refundable? Oversold flights/undersold flights/changed flights-a total nightmare for all, including pax. Last minute cancellations are one of many reasons to purchase travel insurance.

 

But if I remember correctly, most (if not all) tickets used to be sold on a refundable basis years ago (maybe as late as the early 80's).

[Jimsgirl]

For me the problem is that air tickets from cruise lines can be classed as non transferable/non refundable. depending on the staff at the air line.

 

I was going on Cunard, the plane from my gateway city left 2 1/2 hours late (the air line was fully aware that many passengers about 20 had a transatlantic connection to make at Atlanta)

We were still circling Atlanta when our transatlantic plane took off leaving us stranded. The desk closed down , many of us found the desk for the next plane to UK, (same air line) but the staff there where "not interested" as far as they were concerned we all had to go down to the main hall, stand in line, buy new tickets, and be put on "standby".

 

Some wandered off ,elderly passengers very stressed out, some had no money even for hotels. Others like myself insisted we wanted to see someone higher up than the desk staff.after all it was the Air Lines fault the plane from FL was late (it arrived late, and the staff would not make the flight back etc).

 

Finally we got word that our tickets were to be accepted, and all the delayed passengers were to go to the head of the standby list. We all got on, landed at Gatwick. but everyones luggage was left behind on the tarmac at Atlanta!

Retaliation ? Who knows?

[FlyerTalker]

But if I remember correctly, most (if not all) tickets used to be sold on a refundable basis years ago (maybe as late as the early 80's).

 

Yes, and fares were regulated by the Civil Aeronautics Board (CAB). Compared to today's fares (adjusted for inflation), they were as high as today's full-fare refundable tickets.

 

It's all part of a black art known as "yield management". A couple of interesting links are HERE and HERE. Or just google "airline" with "yield mangement".

[greatam]

For me the problem is that air tickets from cruise lines can be classed as non transferable/non refundable. depending on the staff at the air line.

 

 

It is not that they "can be classed", they ARE classed. Cruiselines book the cheapest consolidator fares they possibly can. They book under contracts with the airlines and those tickets are ALWAYS non-transferable/non refundable. When there is a problem with a cruise air ticket, you cannot go directly to the airline. The airlines will very rarely make other arrangements. You MUST get the cruiseline involved.

 

Then the cruiseline negotiates with the airline to move pax. To board another airline with your current ticket, you need a ticket that is "endorsable". Cruise air tickets are NOT endorsable without input from the cruiseline. They are originally purchased by the cruiseline as non refundable/non transferable/non endorsable. Just one more reason to purchase your own air tickets.