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1 in 4 Aussie air bookings refunded: study

And are travel credits really that risky?

Only one in four consumers have received a refund for flight bookings impacted by COVID-19, new research has revealed. 


In a survey conducted by financial comparison service Mozo, more than half (55%) of those polled who couldn’t use their air tickets on account of coronavirus said they received travel credits for their flights. 



Less than one in five (18%) customers lost money while one in seven (14%) lost money on booked tours and prepaid events. 


While flight credits may seem like a convenient option, Mozo found that settling for travel vouchers could pose risks. 


“From six month expiry dates, to purchase limits on new flights, lost credit and additional phone booking fees, flight credits are not always your ticket to a smooth take off,” Mozo spokesperson Tom Godfrey remarked. 


“Unlike a cash refund, when you accept a flight credit you take on the airline’s risk and can be flying into a number of tricky terms and conditions.” 


“So with domestic and international still up in the air, it’s best to land a refund if you can.” 


Mr Godfrey said whether or not consumers got a refund would “largely depend on the airline’s conditions of carriage and the type of fare you purchased”. 


Despite uncertainty over travel abroad in 2020, nearly a quarter of the Australians polled by Mozo said they still intended to travel overseas this year. 


One in seven (14%) respondents had even already bought cheap flights for next year, while one in ten (10%) were locking in flights for 2021.


Domestically, nearly half (44%) of those surveyed said they intended on flying within Australia this year, but only one in 17 (6%) had already purchased flights. 


Of those looking to holiday locally after the travel ban is lifted in Australia, one in four (27%) said they would do so to support Aussie tourism while one in 10 (10%) said a domestic vacation would be all they could afford.


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Written by: Mark Harada
Published: 5 May 2020

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