Prepaid and non-refundable hotel stays and flights don’t mind keeping your money when you can’t make the trip, but why do they withhold the points too?
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Non-Refundable Flights and Prepaid Hotel Stays
If a customer buys a non-refundable flight, they don’t get their money back if they choose not to fly. The taxes, however, are refundable if the customer does not fly and should a customer’s plans change, they should certainly call to get the taxes back for their unflown segments.
No problem there.
Prepaid hotel stays work the same way, taxes should be refundable if a customer does not fulfil the stay but they are due no cashback on the nightly rate.
They Keep The Money, But I Don’t Get The Points?
What really grinds my gears… is that the customer relinquishes the revenue but doesn’t receive the points they would have for spending money and staying. Before Mileage D-Day (devaluation), when a mile flown was worth at least a mile earned, it made a lot more sense. The miles and points earned weren’t connected with the dollars you spent, they were connected with the distance that was flown.
However, now that miles are earned in exchange for what is spent, why do the airlines and hotel chains get to keep the points your reservation purchased? There was a direct correlation to the miles earned from the transaction based on what was spent, if the agreement is that it is unchangeable, then the miles shouldn’t only apply if the traveler flies the route.
Is This Legal?
Much like the issue with taxes, if the room isn’t stayed in and the flight isn’t flown, anything calculated based on that which didn’t occur should go back to the purchaser, right? Not necessarily. When I brought this up to Matthew he was quick to point out, “their program, their rules” and while that’s, of course, true, there are still legal standards in place that don’t permit airlines to operate outside the law. There was an exchange for a service and that service does not fall solely to the airline seat.
There were some mistake fares from Alitalia a few years ago that cost $0. Courts found that the carrier could cancel tickets where nothing was exchanged of value from the purchaser, but in cases where tickets sold for at least €.01, they had to be honored. Something was exchanged from the purchaser to the vendor and whether it was priced by mistake or not, it was sold and completed. Spanish courts have also ruled in the last year that airlines cannot impose penalties for skipping legs of a ticket, as United famously attempted to do.
The courts have not been favorable to claimants seeking fairness from the airlines in recent years. Though I travel every single week, I find it flumoxing that a hotel can sell a prepaid room, fully intend for me to show up, be prepared to pay out the points, oversell the hotel so that they do not lose out on my night of revenue and yet do not have to give me the points for my stay.
This is Why
If hotels and airlines allowed travelers to earn points and miles from trips they did not take, bad actors would book many to secure status or accrue points without leaving home. Toward the end of the year, those close to status may buy obscure tickets they never intended to fly, or book hotel stays they never intended to use on cheap routes, in cheap markets simply to maintain status, or game the system. If anyone is going to game their system, it will be them.
They also, simply, do not have to. Many reservations go abandoned every year and while the minimal cost of points paid out by airlines and hotels on a per reservation basis would be low, the effect to the business in the form of liability incurred would be drastic. Until the law changes or consumer behavior drives it, the travel companies will continue to retain any points associated with a vacated reservation.
Conclusion
Am I a little whiny and annoyed by this? Sure. But if the airlines and hotels are going to make loyalty all about the money that’s spent rather than dedication to the brand, then they should comply fully with the terms of their sale.
What do you think? If you can’t make a flight or hotel and can’t refund it should you still earn the points? Or is it more a case of “their house, their rules?”
Wyndham used to award points on no shows, for what it’s worth.
Seems like you should earn qualifying dollars (you spent the money) but not qualifying miles (you did not fly). Similarly no show money should count towards Marriott’s $20k spend requirement for Ambassador, but not nights since you didn’t spend the night.
Excellent points.
Not to out myself here but I have checked in on the Hilton app to a room which I later never showed up to and was credited the points. I got a digital key so they never would have seen me.
This was maybe late last year…so I don’t know maybe they’ve updated this to where if you never use the digital key they count you as no show?
I agree that for mileage runs at the end of the year I would just scour obscure routes for sales to get cheapest miles per dollar, but I wish it could be that way.
I’m not aware of all the legal issues regarding FF points but are travelers ever entitled to them as a part of the contract when buying a ticket? I assume not.
That is if the airlines merely say you must actually travel to get the points, whether or not you paid is beside the point?
Before the switch to a direct relationship between the amount paid and the miles earned, I think that could be said – you used to only earn miles and points from the stay – but now I am not so sure. You are buying the miles at a fixed rate along with the reservation, just as you can’t buy a soda without the cup or straw.
Matthew is right. Their program, their rules. Comparing it to taxes showed how high your education was. Tax is compulsory to the state. Nobody forces you to fly, use a particular airline, moreover be a member of its program.
Please, as an “expert” in mileage and points, showing a creative solution rather than ranting is better for bussines, as it advertised your savvyness of the industry.
The resolution is to offer the redeemable points but not the status points when not travelling on a non-refundable reservation.
You might want to upsell that idea by explaining the benefit of it, for both parties. Otherwise, its still a rant…
I think I stated as much at the conclusion so… what’s your point?
If you see a problem, give your best creative solution of it. Best means beneficial to all parties involved. Best means they can do it in corporate sense. Try to wear their shoes and ask yourself, would you do it? With all the considerations same as you being in their position.
Can you?
Or this is just a millenial teenage rant?
It’s all because the airlines/hotels sale T&C was worded as such that a no-show will attract a “penalty” equal to the fare/rate. In case of a a no-show, obviously there is no “sale”, therefore no points/miles awarded.
If there is no sale, where’s my money?
The point here is that yes, you spent your money, but not on the “sale” of a hotel room. Rather, you paid a “penalty” that just happens to be equal to one night’s room rate. Ergo, the hotel doesn’t owe you any benefits that normally accrue from the sale of a hotel room, dining, etc.
That being said, I do think Gary has a worthy compromise solution, i.e. awarding redeemable points, but not stay credits, for no-show charges, though I would limit it to a set number of no-shows per year. That largely eliminates the potential for abuse, but arguably engenders loyalty further.
Thank you for clearing that up. Some one is slow it seems…
I think the more frustrating scenario is when the airline rebooks you (due to no fault of your own) on another airline that they have no alliance with and you lose the credit for that leg of your trip.
That should be a bonus for you. Contact your original carrier and request your “original routing credit” meanwhile you get to earn on the alternatively flown carrier. This is something I’ve done several times successfully, in fact, I’ve never been denied this because they owe it to you.
I am annoyed when my flight gets cancelled or severely delayed and I need to take an alternate carrier. I believe loyal clients deserve a mileage credit in these situations.
I should have added that in my case American made no attempt to rebook me on another carrier recently, they wanted me to fly them the next day. I opted for a Southwest flight that got me to my destination same day.