If 2020 has taught us anything, it’s that before we commit to that musical festival, holiday accommodation or wedding venue, we need to know exactly what it’s going to cost us if plans change.
And the savvy suppliers are adapting their offerings to meet our new need for flexibility.
New SA domestic airline Lift, which takes to the skies this week, allows ticket holders to cancel up to 24 hours before departure for a full credit voucher.
And that’s not all: you can make booking changes – as many as you like – up to 24 hours before departure; you can transfer your flight to someone else; and you can change the name on the ticket because you made a mistake or you’re giving it to someone else.
All for no extra charge, except for when the name change needs to happen within 24 hours of your flight, in which case a “small fee” will apply.
This week FlySafair, which was operating 75% of flights after restrictions lifted midyear, introduced similar flexibility, for a R50 extra fee.
Companies offering travel insurance are no doubt hiking their premiums to match the increased risk of cancellations, but should also be relooking at their Ts and Cs.
“We understand that life happens – plans change, hot spots are identified, emergencies arise and sometimes you have no choice but to cancel or postpone your travel plans,” the airline told its customers.
“That’s why we recommend adding our Life Happens service for only R50 to your flight basket, which automatically upgrades your ticket to one that can be refunded to a voucher. Tickets may be refunded to a voucher up to 24 hours before your trip, so you’re covered, even last minute.”
Companies offering travel insurance are no doubt hiking their premiums to match the increased risk of cancellations, but should also be relooking at their Ts and Cs.
Refusing to pay out when a policy holder’s travel plans are cancelled – due to government restrictions – because they were offered a credit voucher by an airline or cruise company is not justified. Not in the case of those who do not wish to and will not use that voucher for future travel.
Make sure you ask very specific questions about the circumstances in which your policy will pay out before you invest in that pricey travel insurance.
Before Covid, companies’ cancellation policies were based on the consumer cancelling for some reason.
The Consumer Protection Act allows consumers to cancel advance bookings for a refund, but it also allows companies to charge a “reasonable” cancellation penalty.
The closer to the event the cancellation happens, the bigger the penalty, as compensation for the fact that they are unlikely to replace the booking.
But no penalty can be charged, even for a last-minute cancellation, if, as the CPA puts it: “The consumer is unable to honour the booking because of the death or hospitalisation of the person for whom, or for whose benefit the booking, reservation or order was made.”
But clearly those policies don’t apply if the cancellation was not of the consumer’s making or choosing, which is what happened when the country went into hard lockdown as a response to the Covid-19 pandemic that was sweeping the world.
If wasn’t the fault of the suppliers either, which is why many organisations, including SA’s consumer goods and services ombudsman (CGSO) Magauta Mphahlele, have repeatedly urged consumers to accept a postponement of their booking or a credit voucher, rather than insisting on a refund.
“However,” said Mphahlele in a press release earlier this year, “suppliers must understand that they cannot impose a blanket no-refund, voucher policy or other alternative.”
But that’s exactly what so many of them have done.
In an extreme case I’ve been investigating – on hold pending the outcome of a CGSO inquiry – a KZN wedding venue is not only refusing to refund a couple the R17,000 deposit they paid for the 140-guest wedding they planned to have on April 4, but demanding another R30,000 as the outstanding amount of the total quote!
The venue owner’s lawyer told me: “(Their) failure to arrive for the event (on April 4) or engage with our client, amounted to a repudiation of the contract.”
The mind boggles.
The venue – along with all others – was closed on April 4. No wedding could legally take place, let alone one for 140 people, and there is no way the owners would have been able to host another function on that day in its place.
And yet the venue demands full payment for a large wedding, without outlaying a cent. Not a single samoosa provided.
On the other hand, I’ve had reports from people who have cancelled holidays and weddings and been refunded in full without a quibble.
Anna Cressey of England booked a three-night stay for two in Cape Town’s Gorgeous George Hotel in September this year.
Forced to cancel the booking after her airline cancelled her tickets, the hotel offered her a choice of a free date change to 2021 or a full refund of her deposit.
She opted for the full refund.
“It took me many frustrating hours to unpick other bookings and obtain refunds or vouchers,” she told me. “The Gorgeous George Hotel showed what efficient, effective, no-fuss customer service looks like.
“I can’t wait to stay there now!”
Of course she can’t.
Companies both big and small have revealed a lot about their regard for their customers in the way they have chosen to handle Covid-19-related cancellations.
Best we take note.
