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Wanting to reduce the number of refunds they pay out for canceled flights, some airlines are offering bonus flight credits for customers who take a voucher.
Among them are Lufthansa, Aer Lingus, Qatar Airways and Singapore Airlines. Qatar and Aer Lingus will provide vouchers equal to 10% above the cost of the booking. Lufthana’s vouchers entitle holders to a 50 euro discount when rebooking. Singapore is making a more stratified offer, with voucher bonuses ranging from $50 for coach tickets to $350 for first-class tickets.
American said in late March that it was incentivizing customers who choose a voucher, though the carrier has no formal policy in place.
So, should travel advisors encourage clients to choose this option?
Peter Vlitas, senior vice president of airlines for Travel Leaders Group, cautions against it unless a refund isn’t an option.
One problem, he said, is that accepting a voucher locks the traveler into a single airline. When rebooking, customers may want the ability to shop for fares.
Vlitas also said that managing vouchers can be an added complication for agents, requiring them to input rebookings manually rather through the normal workflow.
Michael Wraight, director of U.S. sales for Singapore Airlines, says its flight credit program is designed to offer genuine value to customers and travel advisors alike.
Unless a customer requests a refund, Singapore is providing vouchers, including bonus credits, automatically for all unused tickets through June 30 that were booked up to March 15. The credits are good until June 30 of next year.
Wraight said agents benefit when clients opt for credits because they retain the booking and because they get the opportunity to upsell to a premium product when the client decides to rebook.
But he emphasized that Singapore’s policy also allows for ticketholders to request a refund even after they’ve been issued a voucher and bonus credits.
“Having that choice or flexibility is great,” Wraight said. “It also puts a lot of ease on the agents. Passengers who have the flexibility and can wait, it gives them an option.”
Source: travelweekly.com