Refundable flight tickets: Are they worth it?

You’re faced with the decision every time you book a plane ticket: to buy refundable or non-refundable? While a refundable ticket is the sensible choice, it’s often much more costly, and if you’re looking to save a few dollars on your ticket, you might be swayed to a non-refundable one.

To help you make the most informed decision for future ticket buying, here’s everything you need to know about refundable flight tickets.

What is a refundable flight ticket?

A refundable plane ticket allows you to cancel your ticket and receive a full or partial refund, depending on the airline policy and fare rules. A refundable ticket offers flexibility, giving you a cost-free option to cancel your travel if needed.

Why book a refundable ticket?

Refundable tickets offer you something non-refundable tickets can’t and that’s peace of mind. It’s generally the safest option to choose when traveling, as a refundable ticket allows you to cancel your flight and get your money back, without having to jump through hoops or being financially penalized. 

A refundable flight ticket is particularly worth it if: 

• Your travel plans aren’t set in stone
• You’re traveling for work and last-minute changes aren’t unusual
• You’re booking far in advance and plans could shift
  ‍

Refundable flight tickets: Pros and cons

Pro: Refund value

This depends on the airline but in general, you should receive a full refund of the original airfare (including taxes and fees) when you cancel a refundable ticket. If it’s likely that your travel plans will change, this means you can cancel and rebook as needed, without worrying about the impact on your bank balance. 

Be sure to explore the fare rules when purchasing your ticket so you have full transparency on how the airline handles refunds.

Plus, you typically receive more frequent flyer points when you book a refundable fare, making them even more enticing. 

Con: Cost

Unfortunately, the cost of refundable tickets would be largely considered a con. Refundable tickets come at a premium, compared to non-refundable options; although the ability to be flexible is often enough to outweigh the added cost. 

The pricing strategy for refundable tickets differs between airlines and some can offer more competitive prices on some routes. However, keep in mind that prices tend to go up, not down, as the departure date nears (gone are the days when last-minute flights are cheaper).

Although if you need to cancel or change your travel dates with a budget carrier, you’ll typically incur a bigger fee, often making a refundable ticket more worthwhile.

Pro: Cancellation period

Most airlines offer fairly generous cancellation periods, allowing refundable tickets to be canceled right up to the scheduled departure time for a full refund. 

However, it’s important to check the fare rules of your ticket before booking, as they can differ per airline and some have stricter rules or may charge cancellation fees, even for a refundable ticket. 

Bonus: The 24-hour rule

Okay, this isn’t specific to refundable plane tickets but while we’re here, it’s a handy piece of refund information to know for your next booking experience. 

Under a US Department of Transportation regulation, airlines must allow free cancellations or changes within 24 hours of booking the flight, provided that:

• the flight departure date is at least 7 days away
• the flight was booked directly through the airline (and not with a third-party booking site)
• the flight originates in or is flying to the US

So, if your plans change within 24 hours of booking the ticket (whether it’s refundable or not), be sure to contact the airline ASAP to find out how you can secure a refund under these rules.

Refundable vs non-refundable tickets

Still unsure whether to buy refundable or non-refundable fares? Here are the nitty-gritty differences between them. 

Refundable vs flex fares

You’ve probably seen the term ‘flex fare’ as you do your ticket research, as these are becoming an increasingly popular offering from airlines. 

And, you might assume it’s another name for a refundable ticket, but here’s where it gets confusing: some airlines do call their refundable tickets flex fares but for other airlines, these are different things. 

Most commonly, a flex fare isn’t refundable, but it does usually allow you to change your travel dates for a small fee or receive a partial refund. Think of a flex fare as the in-between of a refundable and non-refundable ticket.  

Although, as we mentioned, some airlines refer to refundable tickets as flex fares, so it’s important to read the fine print when booking your ticket to be sure what you’re getting.

Refundable ticket vs flight credit vs travel voucher

When canceling a flight, there are several ways you can be refunded.
However, not all options are created equal; here’s the difference between a refundable ticket, a flight credit and a travel voucher. 

Refundable ticket

• Your money is refunded to the original payment method (e.g., your credit card)
• Usually only available on flexible or higher-priced fares
• It can still come with restrictions
• Offers flexibility if your travel plans aren’t set in stone
  ‍

Flight credit

• You don’t receive a refund, but instead, you’re given a credit with the airline 
• The credit usually needs to be used within 12 months of issue
• Flight credits are typically given when a flight is disrupted or canclled by the airline, or voluntarily canceled, but the booking conditions don’t include a refund
  ‍

Travel voucher

• Typically issued as a goodwill gesture or as compensation from the airline due to situations like flight delays, cancelations or overbookings. 
• These are generally less flexible, cover limited routes and are non-transferable
  ‍

Are refundable tickets worth it?

In most circumstances, refundable tickets are worth the extra cost, especially for those with uncertain travel plans. Travel doesn’t allow for a lot of flexibility (with set flight times, unpredictable weather, flight cancellations — the list goes on) but this is a small way to help you have a little more control over your plans.

If the cost is causing you to pause on purchasing a refundable ticket, you might like to consider PayLater. Our innovative layaway model allows you to lock in great travel deals today, with a small deposit, and pay the remainder off in weekly or bi-weekly instalments.

This means you can secure a ticket sooner, rather than later, and enjoy flexible payment plans and spread the cost of your refundable ticket over weeks. You don’t need to worry about if you’ll grab a refundable ticket but rather when. 

How to refund your ticket

If you do need to cancel your ticket, it’s best to get in touch with your airline or travel agency where you booked the ticket as soon as you can.

You may be able to complete the cancellation process via your online account with the airline but if in doubt, you might want to call customer service for more personalised advice.

To start a refund on Paylater Travel tickets, please reach out to our customer support team via chat or email and they will assist you.