In a significant move aimed at bolstering consumer rights, the U.S. Department of Transportation (DOT) has introduced new regulations that compel airlines to be more transparent about their fee structures and to offer full cash refunds in case of significant service disruptions.
The Total Ticket Price Must Be Prominent
The DOT now requires airlines and travel agencies to prominently advertise the total price a consumer must pay to buy a flight ticket. For example, airlines and travel agents may break down the fees that make up the total ticket price, but the total ticket price must now be more prominent than the respective breakdown of the charge.
Transportation Secretary Pete Buttigieg announced the regulation, saying that this was put in place to "[protect] airline passengers from being surprised by fees." Fees like baggage fees, change fees, and other potential charges must now be apparent.
Refunds Must Be Issued In Cash By Default
If an airline cancels or significantly delays your flight, they are now required to provide an automatic refund to the credit card used to book the flight within 7 days. Notably, refunds must be issued in cash as default unless a passenger voluntarily chooses another form of compensation. This practice of offering vouchers instead of cash refunds was particularly contentious during the early stages of the COVID-19 pandemic.
This now helps consumers, as they may not even realize they are entitled to a cash refund rather than future travel credit.
How Do We Feel About This?
I think these are overall good changes that are helping move things in the right direction. Refunds being automatically issued in cash is a great thing, especially considering I have noticed that refunds are typically always prominently offered as credit first rather than cash. Agents also are also sometimes pushy on this matter, so I really appreciate the direction we're moving with this.
Conclusion
With these changes, the DOT aims to not only improve the overall travel experience but also to restore trust in an industry that has often been criticized for prioritizing profits over passenger welfare. The regulations are set to take effect later this year, giving airlines time to adjust their policies and systems to comply with the new standards.
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