Online Booking Sites Rack Up Complaints over COVID-19 Travel Cancellations

Last year, at the onset of the COVID-19 pandemic, millions of travel plans all over the world had been cancelled. 

Given these sudden cancellations, travelers had the added problem of trying to secure refunds through online travel agencies (OTAs). Those who made flight reservations through third-party sites such as Expedia or Priceline had difficulties getting their cash back. 

The US Department of Transportation (DOT) saw an evident upswing in consumers filing formal complaints regarding this travel concern. From January 2020 to December 2020, different OTAs received a total of 14,604 complaints―94% were about obtaining refunds for unused or lost tickets, fare adjustments, or bankruptcies. 

Additionally, Expedia became the subject of a class-action lawsuit because of refusing refunds for flights canceled due to the COVID-19 outbreak. 

One of those who filed a lawsuit against the online travel booking service was Daniel Mahoney, who claimed that Expedia violated the Washington Consumer Protection Act by refusing to refund his airline ticket’s price. 

The lawsuit read: 

“Despite its role as middleman or broker in its customers’ purchase of air travel on these airlines, Expedia did not intervene or take steps to ensure that its customers were given the right to receive a refund on pandemic canceled flights.” 

As stated in the Air Travel Consumer Report, the DOT received a total of 102,550 complaints against airlines, travel agencies, and tour operators last year compared to 2019’s overall complaints of 15,342. 

These numbers caused more Consumer Reports to urge new DOT officials headed by Secretary Pete Buttigieg to better protect consumers in terms of refund policies. 

This is one reason why having a relationship with an agent or travel advisor is important. During the pandemic, OTAs’ business models were not built for such circumstances. That’s why many consumers who booked through these sites got the “short end of the stick.” 

Travel agents had far better success at keeping the client informed and getting them refunds months before OTAs did.

This is why forecasts arise that travel advisors are going to be in higher demand as travel recovers―consumers want to make sure they have an advocate on their behalf, and there’s no one else who proved worthy for that position than travel advisors. 

“An individual company that will remain nameless took five months to refund guests, and after 143 phone calls we got their refund. If someone on their own has to make 143 phone calls, it wouldn’t have happened. It’s really true that without a travel advisor you’re on your own. I’ve also gotten multiple phone calls from non-existing clients but friends of friends who booked directly with airlines or a website and I was able to help them when they were stuck and couldn’t get a hold of anyone.” - Susan Rice, President of New Era Travel