The flight, hotel travel credits expire
Travel credits and IOUs are set to expire in the near future, creating an upcoming conundrum for travelers, the Wall Street Journal reported. A number of airlines have provided individuals with a COVID-19 extension on IOU expirations through the end of 2021. However, many travelers don’t think they’ll be traveling this year, especially not to destinations in Asia or Europe.
Documents filed with the United States Securities and Exchange Commission (SEC) indicate that the four largest United States air carriers – Southwest, Delta, United and American – had $ 10 billion in unused travel credits at the end of last year.
Beyond airlines, the WSJ reported that one person paid $ 1,300 for accommodation in France for a trip canceled due to COVID-19. Although the hotel gave the individual a year and a half to spend the credit, American tourists still cannot travel to this country and the individual does not think he will cross the pond in 2021. L The hotel has reportedly stated that it intends to reimburse the individual once the voucher expires, which is permitted by French law, but the traveler is not sure that will happen.
Business travel management company TripActions reports that nearly 30% of the unused travel credits in its system lapsed in the first quarter or will be by the end of March.
Airlines’ profits had declined in the fourth quarter, as they did in all other quarters of the past year, with COVID-19 essentially serving to anchor the industry globally. However, airline executives have been optimistic about the market’s return, especially regarding the advent of vaccines that will allow people to travel safely again.
“We have been encouraged as more and more customers travel, and we are seeing a gradual improvement in our revenues, financial results and daily cash consumption,” said Ed Bastian, CEO of Delta Airlines, in a press release, as previously stated.