As hotels are known to do, airlines also overbook their space to compensate for people who don’t show up for their reservation. Sometimes though, it ends up that everyone who booked the flight arrives. That’s when carriers find a way to entice one or more people to give up their seat, put their plans on hold and take the next flight to their destination.

We’ve heard these requests. The announcements start while you’re waiting at the gate and some continue on until the flight boards. Announcements like, “We’re overbooked for this flight. We’ll offer you a $200 flight voucher to wait and take the next flight out”. If no one comes forward for that offer, the value typically increases. Recently a United Airlines passenger received a $10,000  voucher as compensation for being bumped from a flight. Wow, wouldn’t that be a sweet deal? However, I wonder about the terms and conditions that were attached to using that voucher. Before agreeing to and signing for any amount, here are things to consider.

Questions to ask about flight compensation

  1. Which airlines can I use the flight voucher for? For instance, Air Canada and United Air are members of the Star Alliance group of airlines and American Air is a member of the OneWorld Alliance. Can I use this voucher on any Star Alliance or OneWorld flight?
  2. Can I use the flight voucher for European or Asian routes? Or do I need to book only on domestic flights?
  3. Where and how can I redeem the vouchers? Some will not permit using the voucher with a travel agent or through a website but require you deal directly with the issuing airline.
  4. Are there blackout dates associated with the flight voucher? Read the fine print and if you don’t like the terms, ask for a better deal, or a refund.
  5. Is it possible to use the voucher to cover fees and taxes or will it only cover the flight cost?
  6. When will the flight voucher expire? The voucher might be valid for less than a year.
  7. Is the voucher transferable to someone else? Some airlines permit transferring and others don’t.
  8. Is the flight voucher redeemable for multiple trips? For instance, if the voucher is for $600 and you book a flight for $400, can you use the remainder to put towards another flight at another time?
  9. The airline is legally required to offer you cash but typically offers vouchers first, however, if no one accepts the voucher, you can step forward and request cash. With its many restrictions, the voucher is worth about half of its face value. If you are offered cash first but are willing to take a voucher, ask for the voucher at double the cash offer.

If you’d like to be bumped from your seat to receive the flight voucher or cash, just talk to the service representatives at your gate before boarding. Let them know you’d be willing to forfeit your seat, if necessary and for the right price. Just be sure to ask these questions before committing to the compensation.

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