Future travel credits is an excellent option for travelers, vacationers and tourists to go on a trip or vacation if it has been postponed or canceled by unforeseen circumstances such as COVID.
Historically, many booking conditions of a reservation did not allow for a full or partial refund, causing headaches for travelers. The good news is that many travel companies have adapted to the recent times and provide a flexible option to retain travel credits if they had to cancel.
Various factors can disrupt your travel such as the COVID pandemic, extreme weather conditions, staffing issues and other unusual circumstances.
Keep in mind that travel credits are not only for airfare and hotels. Many companies will provide a refund via travel credit for car rentals, pre-paid accommodations, cruises and more.
It’s important to read the fine print or work with a knowledgeable travel agency such as Superior Cruise & Travel, a KROZ Company, to help you understand the ins and outs of travel reimbursements.
How Do Future Travel Credits Work?
Most people compare future travel credits with credits they incur with a retailer. For example, a clothing retailer allows shoppers to purchase various items from different brands, depending on the credit value.
However, in the travel industry, it can be different.
Future travel credits represent a value you can spend and remain attached to air tickets, cruise tickets, car rental bookings, hotel bookings, etc. For example, if you have future travel credits from one company, you typically can’t use them with a different company (unless in some cases they are a subsidiary or partner).
Sometimes, the airline, resort package or cruise line requires new tickets to be of the same or more value than the original. Although the expiration date of future travel credits varies from company to company, the average pandemic era duration is 12-24 months as most suppliers are lenient due to the COVID-19 global health crisis that has caused travel restrictions and social distancing protocols.
Typically, your travel credit will be held in a “travel bank” for future use and record keeping. Once the travel company issues the ticket, they will deduct it or you will forfeit the amount if you fail to use it.
The primary benefit of future travel credits is that you can typically redeem it for almost anywhere (different from your original destination). For example, suppose you had initially planned for Mexico but circumstances out of your control caused the trip cancellation. In this case, you can redeem your travel credits to go to Asheville, NC and call it Mexico 2.0 instead. You’ll want to double check the fine print or call the airline, cruise company, hotel or car rental.
How to Leverage Future Travel Credits?
Our travel experts recommend checking with the company you have travel credits with. Understand what your options are and what the timeline looks like. In some cases, you’ll have more flexibility than you may have originally thought. Some airlines, cruise companies and hotels have partner or sister-sites that credits can be applied for.
If you have a flight or cruise credit for one airline or cruise, determine whether you can use it to purchase two cheaper flights or cruise tickets.
We strongly recommend getting a refund to the original payment method if the reservation is fully refundable. This way, you have more options available to you. Future travel credits are the second best option and can really set your travel plans up for future success.
Need to Plan and Book Your Vacation?
In today’s travel climate, it is crucial to seek advice from a seasoned travel agent. This will help you understand all of your options and get the most out of your future travel credits. If you need to cancel a trip, don’t panic. Travel credits can help mitigate your loss into an exciting future trip! Call us today at 1.800.992.8064 to learn more!