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Online Travel Company Chargebacks and nonchangeable tickets.

Puting the shoe on the other foot..

         

lgn1

2:07 pm on Nov 9, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Usually in this forum, we discuss avoiding chargebacks, however this is a new twist.

As you know, most online travel companies have a norefund, no change policy on tickets.

For most consumers, this policy is either overlooked or ignored when online tickets are purchased from these companies.

If your travel plans do change, companies like Expedia can ussually be convinced to change ticket dates, with a payment of a sizeable penalty.

However one company (starts with price), will not change a ticket whatsoever. So basically you are out the full cost of the ticket, if your travel plans change.

So basically, if you cancel your ticket with Price#*$!x, they won't give you any of your money back, and then they can go ahead and resell your ticket to somebody else. This sounds like fraud to me.

I have a friend in this situation (no its not me, honest, im smart enough to book with the airline directly), and I am thinking of suggesting that they process a changeback, against this company.

However their website indicates that the will pursue chargebacks with penalties and lawyer fees. Im not sure if this is just smoke and mirrors.

My experience as an e-comm merchant is, that im 0 for 5 on chargebacks, and now I just lick my wounds and don't even bother trying, when it comes to chargebacks.

There are plenty of people on this board in the travel industry, and any comments on certain companies being totally inflexible on changing travel arrangements would be appreciated.

The way I look at it, more money would be made in the ticket change fee, rather than totally alienating the customer with a worthless ticket, and losing the customer for good, and risking a chargeback that you most likely wont win. Does not sound like a good way to grow your business.

justgowithit

4:21 pm on Nov 9, 2007 (gmt 0)

10+ Year Member



As you know, most online travel companies have a norefund, no change policy on tickets.

For most consumers, this policy is either overlooked or ignored when online tickets are purchased from these companies.

If that's the case, only the customer is to blame. One of the most effective things that a merchant can do to protect themselves against chargebacks is to post clearly defined policies.

I would bet that in this case the merchant would in fact fight the chargeback and that they would win. Large online merchants have complete departments dedicated to disputing and winning chargeback situations.

any comments on certain companies being totally inflexible on changing travel arrangements would be appreciated

I'm not in the travel industry but I am in business. Contrary to what many merchants think, card issuers are sympathetic to their merchant's needs and they will stand behind a merchant that clearly states and enforces fair policies that protect their bottom line.

If a merchant stands to lose money each time a customer returns their product then it seems the merchant has little choice but to make all sales final - and for good reason.

Your friend would probably save a lot of time, effort and money by accepting the situation as it stands. Perhaps your advice to order tickets direct from the airline was a bit late ;)

LifeinAsia

4:34 pm on Nov 9, 2007 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Does not sound like a good way to grow your business.

Well, it obviously worked for them- they generate over $1 billion/quarter in revenue.

The company in question is not for those people who may need to change/cancel their plans- there are plenty of other traditional companies offering their services to those people. The company exists for those willing to take a risk in order to get a btter price. In their years in business, I am sure the company has heard every trick in the book by customers trying to weasel out of their transactions. Trying to dispute the charge after agreeing to the terms constitutes attempted fraud, plain and simple.

Bottom line: either A) you friend knew the risks going into the transaction, or B) he didn't.

If A, he took the risk and it didn't work out for him. That's part of the risk. To hedge his bet, he could have (and should have) gotten travel insurance.

If B, then it's his own fault. From what I remember, the company in question makes its policies very obvious and you have to confirm at least once that you agree the ticket is non-refundable.

BTW, I am in the travel industry and in some cases the ticket/hotel room can NOT be resold to another customer, especially if cancellation is made with short notice.

Rugles

4:40 pm on Nov 9, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I was just going to point out that they can't resell the ticket. Its still his ticket until the flight leaves and the seat is empty.

You do take a chance with a non-refundable ticket.

lgn1

4:59 pm on Nov 9, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



So you are saying, that if the customer cancels the ticket, price**** can't cancel the ticket with the airline, and rebook with another customer, even if the flight is months away?

This is the first I heard about some hotels not allowing a change of name. In Canada, you show up with a valid credit card, and they don't care who stays in the room.

With all this talk of reducing carbon footprints, you think the airlines would want the planes full, for a reduced carbon costs per person.

My friend has acknowlege his own stupidity and has taken the lost. His concern was that priceline would resell the seat, so he won't actually cancel the ticket, but let the plane fly with one more empty seat.

Life was much easier in the 80's. Tickets were not changable in theory, but the airlines staff just wanted a ticket, no ID or nothing. They had their money, they didn't care who flew. If you couldn't go, your brother, or friend would just go in your place, or you put an ad in the newspaper selling your airline ticket at a discount.

Life was so much simplier back then.

LifeinAsia

5:21 pm on Nov 9, 2007 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



The main issue is the company's business model. While we (and even the company) may sympathise with your friend's plight, allowing any refunds completely throws the business model out the window as it creates an opening where people can game the system.

Consider this: Customer A decides to buy a ticket through the company because of the low price. Customer A agrees to the terms, then finds out that it wasn't exactly what he wanted (doesn't like that particular airline or whatever). So he waits a few days, tells the company his plans changed, and gets a refund. Now all risk to the customer is gone.

Also, most likely the company in question is able to negotiate better rates with the suplliers because they guarantee that once a ticket has been purchsed it won't be cancelled. This reduces the administrative overhead by the suppliers, making them willing to pass the savings on to Price*. If Price* starts cancelling a bunch of tickets, those discounted rates get thrown out the window.

In Canada, you show up with a valid credit card, and they don't care who stays in the room.

Again, it depends on the business model. All our reservations with hotels are pre-paid. So if the hotel gives the room to someone else who shows up without a reservation and bumps our customer, you can be d*mn sure that we're going to raise a stink, becuase the customer is going to blame US, not the hotel, for the hotel's mistake.

[edited by: LifeinAsia at 5:28 pm (utc) on Nov. 9, 2007]

lgn1

5:49 pm on Nov 9, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Life in Asia

When I was referring to the hotel, I meant to say say, they don't care who stays under that given reservation number.

Canadian Hotels will not give a room to some joe off the street with no reservation number, when they are fully booked.

LifeinAsia

6:39 pm on Nov 9, 2007 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Ah. Well, it still creates a chink in the armor.

Let's say Customer A makes the reservation and pays with his credit card, but he and his girlfriend check-in under his girlfriend's name. Later, Customer A disputes the charge with his credit card company, the travel agency gets the chargeback and asks the hotel for a copy of the check-in sheet to verify the guy actually stayed. Whoops- the name doesn't match the credit card name, and it's very doubtful the travel agent could fight the chargeback, unless he had some sort of proof that the cardholder and person checking in were actually connected. Even then, the card holder could say the girlfriend used the card without his permission. Especially because he doesn't want his wife to find out about the stay!