Can this trip be saved? I paid for the ticket — where’s my credit?

One of the things travelers love about an airline like Southwest is that it goes against the grain. When other airlines charge baggage fees, it doesn’t. When they impose change fees, it doesn’t. When they have assigned seats, Southwest refuses.

So passengers can be forgiven for getting a little upset when Southwest starts acting like … well, other airlines.

Case in point: Linda Tober’s ticket credit problem. Earlier this year, she bought tickets for her daughter and three grandchildren to fly from Baltimore to Manchester, NH.

I bought the tickets far in advance to be assured that, with children involved, there would be a guarantee that they would all be on the same flight. A couple of months later, I checked to see if there had been a fare reduction and there was. Upon reissuing the tickets, a combined credit of $207 was accrued.

By the way, Southwest is unlike other airlines in that regard, too. Tober didn’t face any “reissuing” fees that would have nullified her fare reduction. (That’s something other airlines do.)

But unknown to her, Southwest had changed its policy. Instead of reissuing the credit to her, it gave the $207 to her kids and grandkids.

The dilemma and frustration about the above is three of the four ticket holders are children and the likelihood that these funds can be used by them within the time limit is remote. I respect that there are sound reasons to support your new policy, however, I personally paid for these tickets, these are youngsters, and the ink on this policy change was not yet dry when I bought the tickets.

Tober made her reservation in February, just a few days after Southwest quietly changed its policy to allow unused travel funds to only be applied to the purchase of future travel for the individual named on the ticket. The switch happened Jan. 28.

She asked Southwest for an exception to its policy, since it had just gone into effect. It refused.

Tober sent a letter to a Southwest supervisor last week, asking it to reconsider.

“My loyalty to Southwest Airlines has been unwavering for many years,” she says. “I look forward to the continuation of our partnership.”

She hasn’t heard back from the airline yet, and wonders what she should do.

I can’t defend Southwest’s latest policy change, which brings it closer to the rest of the airline industry. I think it’s probably just a matter of time before it imposes a ticket change fee or a “reissuing” fee of some kind that would zero out the difference between fares.

If you think about it, the idea that Southwest would issue a refund of any kind is a little odd. Few other businesses issue refunds when the price of their merchandise drops. Apple famously issued a $100 store credit to iPhone customers in 2007 after it lowered prices on its phones, but such a move is highly unusual.

What if the situation was reversed? If Southwest’s fuel expenses suddenly rise (which, coincidentally, they almost certainly did after Tober’s purchase) would it be able to ask her for more money?

Alas, that’s something another airline would like to be able to do. But that’s another discussion.

Should I jump in and mediate this? Or should I stand behind its new policy, even if it means Tober will probably lose $207?

Update (Aug. 16): Tober has a happy ending to report!

I spilled my tale of woe to a very attentive agent. When I was done he asked if my husband and I had any future flights booked on SW.

When I said that we had, he identified himself as a supervisor and proceeded to cancel the flights, re-book the same using the funds I otherwise would have sacrificed and now I can apply the funds accrued from the flights he canceled for travel into 2012.

  • Freddy H

    If you’re nice and get lucky, then yes, they often are willing to bend the rules to work with you.
    But if you are whiny and have this great sense of entitlement (you didn’t expect to use the credits, but got a nice surprise) like OP, then don’t expect any favors.

  • djp

    I do wonder if legally if southwest can since these passengars are under 18.

    The credit should go to the person who purchased the tickets…or to the guardian of the children.

  • Lindabator

    Since they issue the credits back to the ticketed name, they are not concerned with the age of the client, just that the name is the same when rebooked.  Since they are “old” enough to be ticketed, they are old enough to have a credit for their next ticket.

  • Guest

    prices fluctuate, and anyone who still thinks that “the earlier they buy the cheaper it is” deserves to get a financial lesson.

  • http://pulse.yahoo.com/_SYR4YYOAPY4X3UUYLPCADARF3Q emanon256

    Except SouthWest bought AirTran, so I would expect that to change too.

  • http://pulse.yahoo.com/_SYR4YYOAPY4X3UUYLPCADARF3Q emanon256

    Except SouthWest bought AirTran, so I would expect that to change too.

  • http://twitter.com/purplekat99 Becs

    I too am sad about the change in their policy (now I no longer can “sell” unused fares!) but rules are rules, no matter who paid. It was just a matter of time before SWA created this policy anyway. And it’s still not unreasonable.

  • Michael K

    Do you really believe that searching for lower fares is “something out of the ordinary?”

    Do you believe it’s an unreasonable burden for SW to mail or email its regular customers when something that will affect them and is buried in 30 pages of legalese changes?   Or failing that, to at least publicly highlight which sections of their CofC were recently revised?

    It’s not like airlines are shy about mailing customers when they have new credit card offers, new partner offers, or new destinations to advertise.

    —————
    Would you really accept for any company that you do frequent business with to abruptly change it’s policy without notification and without limits?  (Oops, now the policy says I have to give up custody of my first born.  Well a policy is a policy and so it applies to me too… I should have re-read the contractual terms again between my 30th and 31st purchases…).

  • L2y2

    I purchased tickets on SW before the change went into place. I knew the change was happening. The reason they do not issue credit in anyone other than the ticket holders name is due to the fact that they now fly international, not just domestic. This affects tickets being issued with passport info. The credit can only be issued in the original flyer’s names. At least, this is what I was told by SW. I can understand that. Considering how generous SW is compared to other airlines, she should accept the credit in the young flyer’s names. You never know when they may take another trip within the expiration period. Life happens…

  • L2y2

    I purchased tickets on SW before the change went into place. I knew the change was happening. The reason they do not issue credit in anyone other than the ticket holders name is due to the fact that they now fly international, not just domestic. This affects tickets being issued with passport info. The credit can only be issued in the original flyer’s names. At least, this is what I was told by SW. I can understand that. Considering how generous SW is compared to other airlines, she should accept the credit in the young flyer’s names. You never know when they may take another trip within the expiration period. Life happens…

  • Carver

    Disclosure is merely one element, i.e. it addresses adhesion contracts.  It doesn’t affect unconscionability, illegality, etc.

    The point is that it is an incorrect statement to say Rules are Rules, touch luck.

  • Carver

    Maybe

    Its not as cut and dry as either of you suggest. To make your hypo analogous, Cheapomart would be saying that the credit voucher belongs to the minor children.  That effectively makes them a party to the contract and now everything just got sticky.

  • Carver

    “if you find a fare you can live with move on”

    No, I don’t think so.  It depends on how much the dare dropped in relation to the hassle.  IF the fare drops $1.00 I don’t care.  If it drops by hundreds, I’m on the phone.

  • Carver

    I agree.  Major policy changes should be highlighted to the customers. 

  • DavidZ

    “So they punish everybody, instead of those who are actually causing a problem. Classy.”

    If they went after those who caused the problem, how exactly is that going to stop others from doing the same? Lots of drivers get fined for beating speed limits inspite of drive-under-this-speed signs, and we still see that happening.Now, if you tell all your friends they can’t step on your lawn just because a few messed it up, aren’t you effectively punishing them all as well inspite of that arguably and effectively solving the problem?

    I somewhat get your idea behind that. Only…it goes both ways.

  • DavidZ

    “It’s reasonable to issue the flight credits back to the ticket holders.”

    Except in the case where someone else paid for that ticket and wasn’t reimbursed because of a fall-out. That was like one of the most common complaints I got in my past travel agency life.

    Only thing we could tell that person was to try disputing the charges. Unfortunately we really couldn’t do anything else other than that, and neither were we willing to cover anything that especially wasn’t our “direct fault”.
    Alas, that doesn’t stop some people from believing you did them wrong for whatever reason. Just pointing out a reality.

  • http://www.facebook.com/people/Allan-Jayne/100000343947533 Allan Jayne

    Not exactly on topic but here is a reason why a credit should go to the ticket holder as opposed to the ticket buyer.

    I’m traveling on employer paid business. The flight is oversold. I might volunteer if I can keep the compensation. If the compensation goes back to my company then I won’t volunteer and it might be some other company’s president who can’t get on the flight.

  • DavidZ

    I can be mistaken, Chris, but wasn’t Southwest’s changing their policy to become non-transferable tickets discussed here last year? I remember two online discussions about it in other places, though:

    http://www.flyertalk.com/forum/southwest-rapid-rewards/1106134-bank-southwest-has-restricted-ttf-withdrawals-effective-april-29-2011-a.html
    http://boardingarea.com/blogs/thewanderingaramean/2010/07/the-bank-of-southwest-restricting-funds/
    In essence, Southwest gave about six months before that took effect. I’m sure that’s not enough for some people, but giving a six-month leeway to make a major change was an arguably good thing, wasn’t it?

    Now, I’m not entirely sure how much Southwest made this publicly known. If, say, they released print ads or press releases about this exact change, though, I wonder how exactly this would’ve affected them short and/or long term.

    Toyota’s public recall of their vehicles months back surely affected them short-term, though I have no doubt they’d eventually bounce back in the long term if they did a follow up on that. I wonder also how exactly could Southwest have possibly bounced back if they did something similar here.

  • Linda

    Bought tix for 3 relatives and now have $22 credit for each.  But, tix are in their names, so it’s unlikely that we’ll recoup the money for future travel.  However, overall, flying Southwest is such a better experience than ANY OTHER airline . . I can forgive this unfortunately policy change.

  • cjr

    Well, one way this could be avoided is to simply issue refunds, rather than credits. But that would apparently be too easy.

  • cjr

    “so it’s unlikely that we’ll recoup the money for future travel.”

    And this is why the policy is what it is: credit is less likely to be used, therefore, they still get to keep your money.

  • BillC

    Yes really. If you are going to keeping checking after you have purchased a ticket I believe it is out of the ordinary.

    Do you really believe that if SW (or any company for that matter) told you that its terms have changed that a person would actually read it? LOL!

    Companies change their policies all the time. As an example Apple changes their iTunes terms several times a year.

    As a last comment, if you really care about something you make it your business to know about it. Whining after the fact shows that a person is just too lazy.

  • Steve R

    Yes, but in the vernacular nowadays, most people mean fees for the first and second bag when they talk about “baggage fees.” I don’t think many people are surprised that you can’t bring a dozen bags with you for free on Southwest. (Some probably are, though).

  • Michael K

    Most of us who are not Hollywood scriptwriters lack the imagination to dream of  (and scan through thick documents for) every possible policy change that might affect us in some way that we care about.

    Would it occur to you to check every time you purchase something that you might be signing away custody of your first born? ;)  Does failure to do so mean you’re lazy and don’t care about your children?

    If you’re arguing that no one reads anything anyway, and even disclosure of changes is not a reasonable expectation, then it sounds to me like you’re arguing that every single human being is a lazy bum who deserves to be fleeced.

  • http://www.facebook.com/andrelot Andre Lot

    In relate of the minor status of those issued the credit, I think the situation is not much different than minors having mileage accounts, or – say – being issued coupons to use in a theme park.

    Nothing is restricting the ability of M(r)s. Tober to buy tickets for her children with the credit issued to them.

  • flutiefan

    actually, that language had been in SWA’s COC for quite some time, they just started actually *enforcing* it this year.

  • flutiefan

    actually, that language had been in SWA’s COC for quite some time, they just started actually *enforcing* it this year.

  • guest

    then you would be amazed when they walk up with 6 oversized 70-lb bags and then get angry at the CSA & yell, “but Southwest says bags fly free!!”

  • guest

    then you would be amazed when they walk up with 6 oversized 70-lb bags and then get angry at the CSA & yell, “but Southwest says bags fly free!!”

  • flutiefan

    it’s NOT payment credit, that’s the exact issue.  it IS a credit to be used later.

  • flutiefan

    i was just about to post the same thing. i wish i still had the email, but Southwest indicated that this has long been their written policy, they just were allowing blanket exceptions and letting the purchaser transfer the credits as they saw fit.  now, SWA is adhering to their contract as written.  this wasn’t a secret.  like others have said, it’s because of the unscrupulous folks who were selling their credits that SWA had to end the “exception” standard.  a few rotten apples spoil the barrel…

  • DavidZ

    Yup. Depending on how one manages his/her finances, though, one can only refund so much, so often.

    Not that people would care how that one manages that, anyway.

  • DavidZ

    Thus, all the more reason to use that ASAP, right? It’s unfortunate if you can’t use it by then, but that can make you decide what’s maybe more important by then.

  • Brooklyn

    Presumably, she paid by credit card.  This means that Southwest knows who should get the credit.  It also knows that children don’t just hop on a plane by themselves. Maybe they’ll drop their credit policy in the future, but for now the money should go to the person who paid for the tickets.  Sounds like a no-brainer to me!  I’m sorry you won’t be mediating the case, but maybe the bad publicity will make Southwest change its mind.  

  • Brooklyn

    Presumably, she paid by credit card.  This means that Southwest knows who should get the credit.  It also knows that children don’t just hop on a plane by themselves. Maybe they’ll drop their credit policy in the future, but for now the money should go to the person who paid for the tickets.  Sounds like a no-brainer to me!  I’m sorry you won’t be mediating the case, but maybe the bad publicity will make Southwest change its mind.  

  • Brooklyn

    Presumably, she paid by credit card.  This means that Southwest knows who should get the credit.  It also knows that children don’t just hop on a plane by themselves. Maybe they’ll drop their credit policy in the future, but for now the money should go to the person who paid for the tickets.  Sounds like a no-brainer to me!  I’m sorry you won’t be mediating the case, but maybe the bad publicity will make Southwest change its mind.  

  • Kohleth

    rule was not in effect when she purchased the ticket, had she known the new rule was going into effect she may have hesitated on the purchase.  I have the same issue and am very irked about it.