Travel managers are essential in organizing successful business trips, navigating numerous complexities like policy compliance, round-the-clock traveler support, securing sensitive employee data, and simplifying business travel booking. However, one often overlooked challenge that can significantly impact your budget is dealing with unused flight tickets. According to Business Travel News, businesses worldwide reported approximately $1 million worth of unused tickets during the early stages of the COVID-19 pandemic.
Understanding Unused Flight Tickets
An unused flight ticket is essentially an airfare purchase that hasn’t been used due to changed travel plans, emergencies, or last-minute cancellations. These tickets often carry restrictive conditions. While fully refundable tickets allow a complete refund upon cancellation, non-refundable or partially refundable tickets usually offer limited credit for future travel and may include penalty fees, residual value limitations, and expiration dates.
Managing such tickets effectively is crucial. Travelers or corporate travel managers can potentially reuse these tickets or seek refunds, depending on the airline’s specific policies and restrictions.
What Happens to an Unused Ticket?
Unused tickets can commonly fall within two categories:
- Airline-Initiated Cancellation: When an airline cancels a flight, they usually offer passengers rebooking options or full monetary refunds, regardless of the ticket’s refundability.
- Voluntary Cancellation by the Traveler: Typically, if travelers voluntarily cancel, securing a refund is challenging unless they do it within a designated period (often within 24 hours of booking). Otherwise, airlines may issue ticket credits or vouchers to apply towards future travel.
For instance, Southwest Airlines issues travel fund credits valid for future bookings when a passenger cancels a ticket.
Main Challenges Managing Unused Credits
After cancellation, travelers often receive airline credits. However, these credits come with significant administrative issues, such as:
- Tracking Difficulties: Without automated tracking, corporate travelers struggle to remember existing credits or vouchers, leading to wasted resources.
- Employee Turnover: Credits allocated to former employees create logistical challenges. Transferring ticket credits between different employees is difficult and often results in additional charges by airlines, directly impacting the company’s financial bottom line.
How to Effectively Manage Unused Flight Tickets with Travel Code
Implementing these actionable insights can significantly minimize unused ticket challenges:
1. Regularly Track Balances and Expiry Dates
At Travel Code, we advise corporate managers to consistently monitor ticket balances and expiration dates. Establish clear policies around proactively using credits for upcoming corporate trips, ensuring timely utilization and minimal waste.
2. Apply for Refunds Where Possible
Always apply for a refund, even if partial. Under U.S. federal guidelines, passengers are entitled to full refunds when airlines cancel flights. Prioritizing cash refunds over vouchers simplifies unused ticket administration significantly.
3. Adopt Automated Ticket Management Solutions
Employing Travel Code’s specialized corporate travel booking company tools helps automate ticket tracking, providing comprehensive visibility, easier reconciliation processes, and preventing misuse of credits reserved for business purposes.
4. Facilitate Name Changes with Airline Assistance
If tickets are associated with former employees, our experts at Travel Code can assist you with airline communication, advocating for converting credits into reissued tickets under new employee names—potentially incurring manageable fees or adjustments.
5. Promptly Report and Document Losses
It’s important to communicate promptly and document lost or expired tickets. Coordinating with your finance team ensures appropriate expense management and helps recover some finances through tax adjustments if applicable.
Time to Maximize Your Company’s Unused Ticket Value
Businesses continue losing substantial amounts annually due to inefficient unused ticket management. The remedy is straightforward—utilize a reliable platform such as Travel Code. Offering the best options for cheap flights and most convenient hotel booking service, our team provides specialized guidance to strategically handle unused flight tickets.
Ready to Better Manage your Corporate Travel?
If you want to streamline your unused ticket tracking and optimize your business travel expenditures, choose Travel Code, your trusted business travel booking provider. Schedule your consultation with our industry experts today.
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