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Travel Troubleshooter: Why Is My Tour Operator Pocketing My Airline Refund?

A traveler's airline refund is issued directly to the tour operator. Will he be able to get his money back from the tour operator?

Donald Kne's British Airways (www.britishairways.com) flight is canceled, and the carrier refunds the money to his tour operator. So why isn't the company refunding the money back to him?

Q: My wife and I have traveled for more than 45 years together with no real problem with tour agencies and travel companies, including many third-world countries and remote places -- until now. We were returning from a tour of India and due to weather in London, our flight was canceled by British Airways.

We were able to make alternate arrangements with Air India for a direct flight to the United States since British Airways did not resume flights for three days. British Airways refunded our flight to the tour operator, Overseas Adventure Travel (www.oattravel.com). But the tour operator claims it is their policy not to refund this to us because it is part of a land-plus-air package.



Our travel insurance company paid us for all the expenses we incurred but not the cost of the flight, since they said we should be reimbursed by Overseas Adventure Travel.

I have talked several times to a representative from Overseas Adventure Travel, but they say this is their policy. Before I consult an attorney, I would like your comment. -- Donald Kne, Chagrin Falls, Ohio

A: OK, here's my comment: It's your money. Overseas Adventure Travel should return it. Immediately.

If British Airways refunded the unused portion of its flight to your tour operator, it shouldn't pocket the money. But here's the problem: Airlines typically don't offer refunds on nonrefundable tickets when there's a weather-related delay. But in this particular instance, BA bent its own rules and offered a refund.


The Overseas Adventure Travel representative with whom you spoke didn't believe BA would do that. She thought you'd made alternate arrangements to come home, and were asking for a refund to which you weren't entitled.

A company representative told me they were unaware of the refund in their system, and that the phone agent was simply repeating the company's policy that it can't refund a nonrefundable airline ticket.

Putting your grievance in writing might have changed the answer, forcing Overseas Adventure Travel to either consult with BA or to check with its own accounts receivable department, both of which would have readily confirmed the refund. Instead, you reached a representative who just parroted company policy.


For what it's worth, I don't think Overseas Adventure Travel would have kept your money. If you'd asked an attorney to send a letter to the company, it would have coughed up a refund quickly.

How to avoid a situation like this? You could have either asked British Airways to refund your ticket directly to you at the time of the cancellation, and if it couldn't, to verify in writing that it had sent the money to your tour operator. Sending Overseas Adventure that documentation might have persuaded it to do the right thing.


None of that should have been necessary. The company should have sent you a check for the refund as soon as it had the money.

"Clearly, we didn't communicate well internally on this one," a spokeswoman told me. Overseas Adventure Travel refunded you $882 for the unused airline tickets.

Christopher Elliott is the author of "Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals" (Wiley). He's also the ombudsman for National Geographic Traveler magazine and the co-founder of the Consumer Travel Alliance, a nonprofit organization that advocates for travelers. Read more tips on his blog, elliott.org or e-mail him at chris@elliott.org. Christopher Elliott receives a great deal of reader mail, and though he answers them as quickly as possible, your story may not be published for several months because of a backlog of cases.)


(c)2012 CHRISTOPHER ELLIOTT DISTRIBUTED BY TRIBUNE MEDIA SERVICES, INC.


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