Travelers Facing ‘Perfect Storm’ of Post-Holiday Headaches — What To Know About Refunds and More
Written by
Fiona Tapp
Edited by
Rebekah Evans
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Traveling during the holidays is already stressful with packed airports, crowded roads and tight schedules. On top of that, a LegalShield study showed that 63% of travelers lose money due to travel disruptions and most are unclear about what they’re legally entitled to when flights are delayed or canceled. Combined with government shutdown impacts, rolled-back passenger protections and confusing airline policies, this holiday season could create a “perfect storm” of headaches for travelers. Here’s what you need to know.
Why Travelers Are Vulnerable
The LegalShield study highlighted the following several factors that leave travelers exposed to costly setbacks.
- Government shutdown impacts: Disruptions to essential services and regulatory oversight have limited the resources available to help passengers.
Changes to U.S. protections: The Department of Transport (DOT) has officially withdrawn a 2023 Biden-era proposal that would have required U.S. airlines to pay passengers cash compensation for cancellations or delays of three hours or more, citing deregulation goals and stakeholder feedback. - Confusing airline policies: Each airline’s approach to refunds, credits and rebooking varies, making it difficult for travelers to know what to expect.
- Limits on what’s covered: According to the U.S. Travel Insurance Association (USTIA), while DOT rules do require airlines to refund disrupted flights and delayed baggage fees, they do not cover broader financial losses such as missed hotels, rebooked flights at higher prices or meals and lodging during unexpected delays.
Travelers Facing Confusion Over Flight Compensation
Many travelers mistakenly believe they are automatically entitled to compensation for delays or cancellations. We pay airlines our hard-earned money with the expectation they’ll get us to our loved ones, but many travelers assume that if their flight is disrupted, they’re automatically entitled to a refund. That’s not actually the case, explained Wayne Hassay, LegalShield provider lawyer
Although federal rules cover matters like excessive delays, preventable disruptions, overbooking, and time spent on the tarmac, the decision to offer extra compensation — such as meal vouchers, hotel accommodations, or cash for delays — remains mostly at the discretion of individual airlines, even when your flight eventually operates, he added.
He noted that consulting a lawyer can make a real difference when airlines deny refunds or mishandle claims, helping travelers understand their rights and potentially save time, stress and money.
What Travelers Should Know About Refunds and Cancellations
- Check airline policies carefully: Refund and cancellation rules differ by airline and can change frequently.
- Document everything: Keep receipts, emails and screenshots of communications to support any claims.
- Act promptly: Refund requests or claims for delays may have deadlines; don’t wait weeks to contact the airline.
- Know your legal options: If airlines are unresponsive, consulting a travel expert or legal professional can help ensure you’re fairly compensated.
Tips To Avoid Losing Money
- Use travel protection plans or travel insurance when booking flights or hotels.
- Be flexible with dates and routes; rebooking may help minimize financial loss.
- Follow official airline or government sources for updated guidance on passenger rights.
With the combination of holiday travel stress, policy changes and confusing airline practices, travelers need to stay proactive to avoid losing money and ensure they receive the refunds or compensation they are entitled to. According to Hassay, leading with kindness during the holiday season goes a long way. He said a positive attitude can help smooth out the resolution process and make interactions with busy airline staff easier. Still, don’t rely on goodwill alone — be thorough in your documentation. He suggested travelers take screenshots of airline updates, snap photos of baggage, and hold onto every receipt connected to the delay or cancellation. Depending on current regulations and your airline’s rules, this careful record-keeping might be essential for securing reimbursement.
Being prepared and informed can save travelers significant stress and financial loss during the busy holiday season.
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