The skyrocketing cost of airfare today is enough to make me cry as an adult.
According to the latest Consumer Price Index report, the average price of airfare has increased by more than 42% over the past year. Spending with airlines and travel agencies has also increased significantly. Meanwhile, passengers are facing frustrating disruptions such as flight delays and cancellations, increased wait times, and lost baggage, making air travel less reliable than it once was.
This story is part of CNET Money Tips, CNET’s helpful tips for saving money now and protecting your wealth for the future.
“The travel industry is under immense stress globally and on the brink of collapse,” said Brian Kelly, founder of The Points Guy, which is owned by CNET’s parent company. “I’ve never seen travel industry infrastructure fail consumers more on a daily basis.”
Brian Kelly, The Points Guy
Kelly would know. He’s traveled to 85 countries and taken more than 500 plane flights in total. I wanted to get some advice for So Money listeners (and myself), so I reached out to him for some pro tips. In the podcast episode, Kelly shares his thoughts on the current state of airlines and why conditions for passengers could improve over time. To travel at the cheapest price, he says, it helps to book as far in advance as possible and use a comparison tool like Google Flights. Having some flexibility in your travel dates can also help.
I was blown away by his insight, and here are some of his tips for advocating for yourself and saving money and hassle on your next trip this holiday season.
1. Don’t be fooled by offers of travel “protection”
There are many reasons why you might have to cancel a trip, and taking out insurance can sometimes be a wise investment. Travel insurance can provide financial coverage for damaged rental items, lost luggage, flight delays, medical expenses, ticket cancellations, and more. But be wary of travel “protection” programs with numerous clauses and caveats that airlines routinely sell at checkout.
Kelly called the policy “garbage” and said, “If you want real travel insurance, don’t buy it directly from the airline.” Instead, he recommended checking your credit card’s travel insurance benefits, which may give you lots of coverage at no extra cost, or comparing policies on the independent marketplace InsureMyTrip.com.
2. Buy refundable tickets
With so many unknowns outside of your control, a cheaper alternative to flight insurance can be a refundable airline ticket, which allows you to cancel for any reason, like a change of plans or illness, and get a full refund. “Some people don’t realize that it’s only going to cost them an extra $50,” says Kelly, who also opts for refundable hotel room reservations.
One trick he recommends is to secure your refundable ticket first, then wait until a day or two before traveling to see if a non-refundable plane seat or hotel room is still available at a lower rate. If so, you can cancel and rebook your ticket, saving you money.
3. Know your passenger rights
Due to staff shortages, airlines are forcing passengers to delay or cancel flights. If this happens to you, don’t think your only option is to rebook or receive an airline credit. Kelly said most customers don’t realize they are entitled to a 100% cash refund if their flight is delayed or canceled.
“Airlines are rude about refunds. You shouldn’t get a refund in the form of a coupon. You need to get it in cash,” he said.
Kelly said if you miss a flight for personal reasons, you can still apply for a refund through the airline’s website and potentially get a refund. Sometimes the quickest way to find the airline’s instructions for applying for a refund is to Google the airline and then “apply for a refund.”
“It never hurts to ask,” Kelly said.
4. Direct flights could save you money
Adding a stopover may lower the overall cost, but it means more uncertainty about the trip and could result in extra costs if one of your connecting flights is canceled and you need to book accommodations. “Every time you unnecessarily add another flight, you’re asking for trouble,” Kelly said.
But if you have to take a connecting flight for some reason, allow at least two hours for your layover. For international flights, Kelly recommends allowing four hours between connecting flights.
5. Book a backup flight with your card miles
For events that can’t be delayed, like a wedding, cruise or speaking event, Kelly recommends booking one flight with your credit card and then using miles to reserve a back-up seat on another airline departing from the same airport a few hours later. “Worst case scenario, if your original flight gets delayed or canceled, you have a back-up flight because they sell out these days,” he said.
If you use your miles to secure a new flight, most airlines have eliminated cancellation fees for award reservations, meaning you can cancel the flight and get your miles back for free.
“Airlines are hurting consumers, so I don’t mind providing some information that can help myself and my readers protect themselves,” Kelly said.
For more travel tips this holiday season, check out my favorite ways to save money on food, gas, travel, and more. Also, find out the cheapest days to fly and how to skip busy airport lines with TSA Precheck, Global Entry, and Clear.
