Find out how to choose between non-refundable and refundable flight tickets in business travel.
When booking business flights, one common question travellers face is whether to choose non-refundable, changeable or fully refundable flight tickets. From cancelled meetings to employee illness and last-minute itinerary changes, there are many situations in business travel requiring flight cancellation. And though refundable flights often come at a higher cost than their non-refundable counterparts, this flexibility often pays off when encountering unexpected delays.
The dynamic nature of business travel makes built-in flexibility an asset, but is the higher ticket price of refundable flights warranted for every journey?
In this blog, we’ll break down the practical decision-making process for booking flexible business flights. Taking budget implications and logistics into account, you’ll be armed with the information needed to choose the best ticket type for upcoming business travel.
Most airlines offer a choice between refundable and non-refundable tickets. Refundable fares allow flyers to change or cancel flights after booking. Some refundable tickets carry restrictions such as defined cancellation windows or a small fee for ticket changes. However, you won’t lose the full value of the ticket when plans change, as you might with a non-refundable fare.
When buying plane tickets for business travellers, you already need to consider factors like layover lengths, routes, and cost. It’s also important to understand the different fare types to determine whether refundable or non-refundable options best meet your team’s needs.
Here’s a closer look at the differences.
It’s important to note that cancellation and change policies will vary widely by airline, so it’s always important to read terms and conditions carefully.
The primary benefit of refundable flight tickets is flexibility, and there are often scenarios in business travel where this is beneficial due to unpredictable, last-minute schedule changes.
For example, travel managers might need to book a series of roundtrip tickets in relation to a project with shifting timelines and an evolving scope. With refundable tickets, late-notice shifts to meeting times would be easier to accommodate without financial penalty.
Another benefit is the ability to lock in lower flight prices during an airline sale, knowing you can change these dates later when itineraries are finalised. Booking in advance gives added peace of mind.
Yet there are also considerations to keep in mind before automatically selecting refundable flight tickets. They do come at a higher cost which can stretch your travel expense budget. For straightforward journeys that are unlikely to change, the higher cost isn’t always justified. It’s also important to consider the policy variations between different airlines and fare types before booking.
Choose refundable tickets at the time of booking, whether directly through the airline or a third-party agency or aggregator. With online solutions like Tripeden.com for Business, you’ll be able to use filters to find the most suitable ticket type from multiple airlines at once. Look for options labelled with filters like:
Refundable options are available across different fare types, including economy and business class flights.
There are a few situations where you might receive a full refund or partial compensation on a non-refundable fare.
Many airlines offer a 24-hour cooling-off period, including British Airways, Delta, and LOT Polish Airlines. This means you can cancel your ticket within 24 hours of purchase for a full refund. This policy is mandatory within the USA, with the US Department of Transportation stating that airlines must either provide a full refund for purchased tickets or allow customers to place the quoted fare on hold for 24 hours.
Refundable tickets provide reimbursement when the business traveller decides to change or cancel their own flight. When airlines must cancel or change their flights due to unforeseen factors like extreme weather, airport worker strikes, or mechanical issues, travellers may be eligible for full refunds. You’ll be able to choose between taking a refund or rebooking your flight, with policies dependent on region and airline.
Even severe delays carry compensation in many countries, no matter the ticket type. For example, business travellers within the EU can automatically claim compensation up to €250 for short-haul flights delayed at least three hours, and €600 for long-haul flights delayed at least four hours. And in Canada, large airlines must pay up to $1,000 for flight delays over nine hours.
Business travel insurance often includes cancellation reimbursement to cover the expenses of last-minute schedule changes and delays. To receive reimbursement, passengers must retain boarding passes, receipts, and other applicable documents.
For a clearer breakdown of whether refundable flights are worth the additional price, here’s a sample cost-benefit analysis.
Imagine you’re a travel manager tasked with purchasing business flights for 20 colleagues due to an upcoming conference. The roundtrip ticket from London to New York costs £585 for a non-refundable fare, and £695 for a refundable fare – a £110 markup.
Analysing your corporate travel programme reveals that there’s an average cancellation rate of 5%, with 1 in 20 business travellers cancelling their tickets.
The full cost for refundable tickets is £13,900, or £11,700 for non-refundable tickets. If one of the business travellers cancelled, you would only lose the single £585 for their non-refundable fare, compared to the £2,200 extra spent on refundable tickets.
In this case, it would be more cost-effective to purchase non-refundable tickets.
While the example above shows that non-refundable tickets can be a more cost-effective option, this won’t always be the case. For smaller group numbers, or riskier routes, refundable tickets may be preferable.
Explore these key considerations as part of your decision-making process.
Business executives often face last-minute adjustments. For high-stakes mergers, board presentations and client meetings, refundable tickets provide peace of mind through flexibility. Your team will have the freedom to arrive earlier or extend your stay as needed to see the job through to completion.
When it comes to the potential for travel disruption, destinations will vary. Some areas are more prone to political instability and weather events than others. Choosing flexible fares offers one way to reduce business travel anxiety in unpredictable situations.
The type of business trip will also impact the best ticket type. There are industries notorious for scope creep and schedule changes, such as construction and product development. For example, business travellers may need to reschedule an upcoming product launch due to competitor activities or extend their stay on a film shoot delayed due to inclement weather conditions.
By contrast, large-scale conferences and events are less likely to change dates. Schedules are carefully determined in advance, so non-refundable fares could be the more logical option.
The price difference between refundable and non-refundable fares is negligible in some cases, and significant in others. How will the cost of non-refundable cancelled flights compare to the higher prices of refundable tickets?
Corporate travel policies will also influence the best ticket type. Some companies will prioritise refundable tickets for certain types of business travel to accommodate changes.
Set up team booking guidelines, spending limits and contact information with this simple online tool.
With over 380 airlines represented on a central platform, Tripeden.com for Business makes finding refundable flights easy. You can choose from economy and business class flights to chosen destinations, filtering by flexibility and fees.
We also offer 24/7 assistance from travel specialists to help with lost itineraries, booking changes, or cancellations, so when there’s a change of plan, employees get the assistance they need.
For fixed itineraries with little likelihood of change, non-refundable fares will usually be the better, cheaper option. Yet business travel arrangements are often fluid, calling for the flexible booking options to match. With refundable flight tickets, business travellers can cancel trips without penalty, making them a convenient solution for anyone with an unpredictable schedule. While they do come at a higher price point, the assurance given often outweighs the cost.
Most major airlines offer a choice between refundable and non-refundable flight options, making it easy to get started with your comparison. Try using Tripeden.com for Business to gain an overview of available business flights for your next journey and find the ideal balance between cost and convenience.
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