March 18, 2003 -- With war against Iraq now a near certainty, travelers who have booked in the recent past are quite naturally worried about cancellation polices of companies in the travel industry. There is, no surprise, good news and bad. Firms seem to be about evenly divided as to whether they have changed or liberalized cancellation policies. A recent informal sampling of USTOA tour operators indicates 47% say yes, they have, and 53% no, they haven't. The USTOA is the U.S. Tour Operators Association, in which 135 active members account for $8 billion in sales annually; it requires its members be bonded to the tune of $1 million each, in order to protect consumers. About 55 of its members responded to the survey.
Some allow travelers to cancel for any reason up to as little as three days prior to departure, with no penalty if they rebook within a year. Some companies may allow full refunds for any reason, while others tie their cancellation policies to the status of U.S. State Department advisories, typically meaning the status must be at "warning" level for a specific destination. You can see a complete list of advisories here, travel.state.gov/travel_warnings.html.
Bob Whitley, president of USTOA, says, "It's important to remember that tour operators do not directly own the hotels, airlines, and other suppliers whose services they use. Therefore, they are dependent on these suppliers to issue refunds and credits when passengers cancel." About 40% of the USTOA companies responding offer insurance either covering cancellation tied to the U.S. government alert system, or due to fears of terrorism or war. Other companies advise travelers to buy independent travel insurance. (To learn about travel insurance policies and Frommer's recommended providers, click here.)
Here's a brief roundup as of March 18, 2003. Note that all this is subject to change, as companies are altering their plans by the minute in light of the war talk. Also, be sure to contact the airline, cruise line or tour operator you are using as each may have its own policies and/or may change their policies without notice.
Major Airlines
The usual penalty for changing tickets is $100 on most airlines in this category.
American Airlines. In event of military action or a Code Red alert by the Homeland Security Department, passengers will be able to change their tickets without a fee. You have to do this within 30 days of the action or alert starting. To read the full policy, go to www.aa.com and click on "AA Offers Customers Travel Reassurance", or go directly to the policy by clicking here.
Continental Airlines passengers who purchase tickets for destinations outside the U.S. & Canada before March 31, 2003, can change tickets without a penalty through May 31, 2003, with some restrictions. In the event of military action or a Code Red alert, passengers can change their itineraries without incurring a change fee as well. In either instance, you will have to pay the difference between your credited ticket cost and the any additional costs for the new dates. To read the full policy, click here.
Delta Airlines. Those who purchase tickets on transatlantic flights by March 31, 2003, can change without penalty by May 31, 2003, again with restrictions. You can read the full policy online here.
Northwest Airlines. Since March 11, 2003, Northwest has a new policy. Should a military conflict commence, a flexible ticketing policy applying only to international tickets already issued, provides an option of changing travel within 90 days of when hostilities commence to an earlier or later date, one time, without paying any fee. All return travel must be concluded by December 15, 2003. Alternatively, applying the full value of their original ticket towards the purchase of another ticket on Northwest or KLM, provided the travel is completed by December 15, 2003. You have to advise Northwest before your scheduled flight, or within 30 days of military action commencing, whichever occurs first. Read the company's online statement here.
United Airlines. If you buy tickets before the start of military action, you can rebook through September 1, 2003 for domestic trips and December 31, 2003 for international travel, without a penalty. Click here for full details.
US Airways. If there is military action or a Code Red alert is effect, passengers will be allowed to change tickets without a fee. You have 90 days to travel after the start of those actions. Read the full policy on USAirway's Web site.
Budget Airlines
ATA announced on March 11, 2003 that consumers who want to purchase airline tickets for future travel can do so without incurring fees and penalties. ATA has established a flexible travel policy that waives standard rebooking fees for customers who wish to change their plans. This change is effective immediately upon the "declaration of war" or an announced "Code Red" by The Department of Homeland Security. You have to travel within 90 days of the start of military conflict or Code Red alert. Tickets purchased after the start of military conflict or Code Red alert will be subject to the usual rules. For more information, click here.
Southwest Airlines and it vacations subsidiary said there is no change in plans and the usual rules will apply for cancellations. Oddly enough, its Senior Fare tickets are always fully refundable, but for anything else, complicated rules pertain. There are no refunds for cancellations made less than 48 hours prior to departure date; a $50 charge up to 46 days prior; $75 charge from 45 to 2 days prior. And you have to put your request in writing. See www.swavacations.com for complete details. The airline also strongly urges passengers to buy its Travel Protection insurance policy at just $20. This covers trip cancellation and more. Contact them at 800/272-2242 for this plan.
Cruise Lines
Two lines say they have no plans for any special consideration on cancellations. Cunard says its two ships are either going round the world (QE2) or "already in Europe" at the moment (Caronia), so "no policy is needed." Carnival says its ships are "around the USA and in the Caribbean, so we don't need such a policy."
Naturally, the lines that are more upscale and which venture into the Mediterranean and other European waters are the most likely to have new cancellation policies. You pay for the privilege, of course. On Seabourn, you buy their standard insurance policy, then pay an extra $295 for the cancellation option, which allows you to cancel for any reason up to 24 hours before the ship departs, giving you 90% of your cost of the trip as a credit for a future voyage. This policy is valid for cruises from June 1 through October 31, 2003. You can get more information online at www.seabourn.com.
A similar upgrade in cancellation insurance is available from Crystal Cruises, where you purchase their regular protection, then the upgrade, for a total of a minimum of $440. You can then cancel up to three days before departure and get 90% credit toward a future sailing within 12 months. You can read the full policy online here: www.crystalcruises.com/mc_release.aspx?PR=199.
Tour Operators
Here are some of the USTOA respondents mentioned above, and the changes, if any, to the their cancellation/rebooking policies:
Gate 1 Travel has not changed its policies, but if you have their insurance policy, you can cancel up to 72 hours prior and get a certificate good for 12 months.
General Tours, yes, they have changed their policy, you can cancel up to seven days before departure, and rebook through 2004 without penalty.
Go-Today hasn't made any significant changes recently in their policies. They do advise potential customers that purchases are non-refundable and to make decisions accordingly. That being said, they will look at any cancellation on a case-by-case basis and may provide a credit towards future travel or a refund in extreme cases.
Image Tours has two kinds of policies: you cancel within 50 days and get a voucher for future travel, or cancel within 30 days, with no penalty, and get a voucher for future travel.
Insight Vacations says you can cancel for any reason up to three days prior to departure, and receive a full credit for cancellation penalty.
On the Scene, specializing in Chicago, says it has changed its policy, without being specific about it, the case also with America West Vacations and Virgin Vacations.
Pacific Delight Tours they will issue a full refund if the State Department issues a travel warning..
Tauck World Discovery, no change, no new insurance covering cancellation, because, they say, "we offer cash refunds to people...regardless of reason if they purchase our Guest Protection Plan."
Uniworld says that for certain river cruises in April and May you may cancel any time with no penalties.
Changing its previous policy, the Mark Travel Corporation managers met on St. Patrick's Day, promising to come up with new information "soon." In the meantime, one of their companies, Funjet Vacations, offers a Pre-Travel Penalty Waiver, which covers cancellation for any reason up to the day of travel and a lowest-price guarantee if Funjet advertises their vacation at a lower price later on. The cost of the PTPW for domestic travel is $49, and it's $69 for Hawaii, Mexico, Caribbean and Central America. As a second option, customers may choose a certificate program for charter or land-only bookings that refunds the vacation amount in future travel credits. The cost for this is $30 for domestic travel and $45 for the other countries/areas mentioned. Contact them at www.funjet.com.
Mark Travel, in business for 28 years, sends three million people a year on vacation. It's the parent of many well-known vacation companies, including Adventure Tours, ATA Vacations, AeroMexico Vacations, Blue Sky Tours, Funjet Vacations, MexSeaSun, MGM Mirage Vacations, Mountain Vacations, Showtime Tours, Southwest Airlines Vacations, TMTC International, Town & Country Tours, TransGlobal Vacations, Travel Charter, U.S. Airways Vacations, United Vacations and "Vegas and More." For more information, visit the corporate site at www.marktravel.com.
If you want a copy of USTOA's "Smart Traveler's Planning Kit," phone 800/GO-USTOA (the same as 468-7862) or e-mail ustoa@aol.com. You can get a list of all USTOA members, the destinations they serve and contact information (including phone numbers, e-mail addresses and Web sites) at www.ustoa.com.
A Non-USTOA Operator
Outside of USTOA are many fine tour operators, one of which, TourCrafters, we have written about several times. Now, people hoping to go to Italy this year but who have put their plans on hold, can buy new "expanded reasons" insurance coverage. With this, you can cancel and reschedule your trip within one year, for the following reasons: war (declared or undeclared); a terrorist act anywhere in the world; government imposed cessation of travel activity; loss of your employment or that of a traveling companion who has bought this coverage; military deployment, activation or cancellation of leave; a natural disaster or earthquake. This expanded coverage is $100 per person for a trip costing less than $1,500, or 10% of the total for a trip costing more than $1500. For more information or reservations, phone TourCrafters at 800/482-5995, e-mail info@tourcrafters.com or online at www.tourcrafters.com.
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