Canceled package deals can carry stiff penalties

ByABC News
December 11, 2008, 3:48 PM

— -- Question:Several months ago, my son booked a five-night trip to Las Vegas on Travelocity. The trip cost $1,656 for the hotel and airfare, and he paid for it using a Chase Visa debit card.

He later decided to cancel the trip due to pending surgery. He called Travelocity and was told he could get about $900 back on the hotel portion of the trip, but the airfare was non-refundable Travelocity said the refund had to go back to the credit card he used to purchase the trip, but he has since closed the account.

Now, because he'd lose so much money, he isn't sure if he should cancel the trip, And if he cancels, he doesn't know how to get his credit because that account was closed. Can you help?

Cathy Reinhardt, St. Louis

Answer:Reinhardt's son bought a flight and hotel package from Travelocity with stiff cancellation penalties, which appeared both in a "review the policies" section before his purchase and in his confirmation e-mail.

With packages, prices of the components are masked. The hotel, airline and travel agency may all attach cancellation fees and restrictions to the purchase.

On the hotel side, early changes to Reinhardt's Las Vegas trip would result in a $25 fee; last-minute adjustments (within three days of departure) would mean a charge of $179. Because he canceled earlier, Travelocity agreed to refund $902, the amount of his hotel stay, less fees.

The air portion of Travelocity's packages are non-refundable, representative Joel Frey says. The rule departs from usual non-refundable fares, which typically allow travelers to cancel and receive a credit for use within one year, minus change penalties.

"We can make special requests to the airline for credit," Frey says. "The airlines, however, are not required to provide a refund or a credit and consider our requests on a case-by-case basis."

Because Reinhardt's son canceled for medical reasons, Travelocity asked him for documentation from his doctor, then worked to salvage some of his airfare. The airline agreed to a refund, minus penalties, which came to $529.