Negotiating the Fairest Compensation when Bumped
part 2
You should always get more than the
legal minimums
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The first offer isn't
necessarily the best or final offer, but there are limits on
what the airline can and will do for you.
Strike a balance to get the most you can both in cash-equivalent
and non-cash compensation.
Part
of a series on being bumped from flights, see the other
articles in this series listed on the right. |
In the first part of this
double article we talk about how to optimize the
many non-cash elements
of a total compensation package for when you're bumped off a
flight.
Now, in the second part, we
focus in on how to get the most appropriately generous cash-equivalent compensation too, and help you understand how to
value the award the airline is giving you.
Negotiating Cash Type Compensation for
Being a Volunteer
In addition to various other
compensatory actions, you will be offered some sort of travel
voucher - probably either a voucher that can be used to pay for
a certain dollar value of future travel, or a free ticket of
some nature.
There are plenty of 'fine
print' issues to understand in each of these two situations so
as to best understand exactly what you are being offered, and if
there are any catches associated with it that might reduce its
value to you.
The Nature and
Value of the Compensation Offered
So how much do you actually
get from the airline for volunteering? Rates of
compensation vary all over the board, from as low as $100 up to
$500 and sometimes (rarely) more, and sometimes you'll get a
free ticket instead of a cash voucher.
This is one of the hardest
parts of the deal to negotiate, because it is the most 'visible'
and 'accountable' part of the transaction for the gate agent.
They are, in some form or another, measured by how generous they
are with giving away vouchers and tickets, but other things
(like meal vouchers) are things they might have a drawer full
of, all available to give away at any time for any reason.
You of course want to
optimize and understand the issues to do with this part of the
total deal as best you can, but if you're trying to negotiate a
better deal, sometimes it is better to consider some of the
other parts of the total deal, rather than to focus on talking
up a $200 voucher to a $300 voucher.
Free Ticket Issues
It used to be that it was
common for airlines to give you 'free tickets' rather than
'cash' vouchers, but this is much less common now.
But if
you are offered a 'free ticket' voucher, there are four things
you need to understand :
Availability restrictions
Are there any availability
restrictions on the ticket - is it good for any
seat on any flight at any time, or is it booked in a restricted
class of service?
You should ask this
question, and in an attempt to find out what the restricted
booking class is/means, ask how it compares to the booking class
typically required for eg a free ticket (you want it to be less
restrictive than the free ticket inventory) or an advance
purchase promotional fare (this might be acceptable).
Blackout dates
Less commonly these days,
but still sometimes found, are situations where the ticket has
blackout dates when it can't be used (eg the days around
Thanksgiving).
Usually this is now managed
'automatically' (and more opaquely) by simply restricting which
inventory class the ticket can be booked in (see the preceding
section) but sometimes airlines will be up-front and specify
certain dates that the tickets can't be used for.
Ticket Expiry
When does the
free ticket expire - there are actually two parts to this
question. The first part is when the free ticket voucher
needs to be converted to an actual flight booking, and the
second is when the booked flights need to be flown.
You would hope that the free
ticket would allow you to book your flights any time in the next
year, and that the booked flights could be taken any time within
a year of them being booked. So, for example, if you get a
voucher on 15 July 2009, maybe that means you have to book your
flights prior to 15 July 2010, and you have to take your flights
prior to 15 July 2011. This is a generous window of time.
Ticket transferability
Can only you use
your voucher, or can you use it to book travel for other
people? Ideally, it would be nice if the voucher could be
used for a free ticket for anyone, not just yourself, and
ideally, you should be able to choose who the person will be
that travels at any future time. But with a year to book
your flights and another year to travel on them, the chances are
that even if it is restricted only to yourself, you'll still be
able to get value from the voucher.
If by some chance you get
two tickets, can they be used separately or must they be used by
two people traveling together? Can they both be assigned
to other people?
Route
restrictions
Is the ticket good to go anywhere the airline
flies? Typically, the ticket may be restricted to perhaps
only the lower 48 states (ie no AK or HI), and definitely not be
valid for international travel, but sometimes you might be
surprised and strike it lucky.
Cash Voucher Issues
More commonly these days
you'll be given a voucher of some description - what used
to be known as an 'MCO' - a 'miscellaneous charges order', and
it will be valid for something between perhaps $100 and $500
that can be used for future travel purchases.
Note that although this is
sometimes referred to as a cash voucher, it can't be converted
into cash.
There are a few important questions to ask about these vouchers as well.
Who will redeem the
voucher?
Is the voucher
valid only on the airline that bumped you? What about
code share flights on other airlines? Regional flights on
other carriers?
Can it be spent in
several smaller amounts?
Can the voucher
be partially redeemed on several occasions? For
example, if you get a $300 voucher, could you use it to buy a
$200 ticket and then get 'change' and have a remaining $100
voucher for another purchase.
How long is the
voucher valid for?
Normally the vouchers need to be
used within a year of issue date, but of course, you can use the
voucher within that year to book future travel beyond that year
(the same as in the example 2 of c.1 above).
Voucher assignability
Can the voucher
be assigned to anyone else, or can it only be used for
purchases in your name?
What can it be used
for?
Can the voucher
only be used for buying tickets, or can it be used for other
things too (in particular, for paying excess baggage fees)?
Maybe you might want to use
it to buy a membership in the airline's lounge program? Or
maybe you might want to use it to buy some miles from their
frequent flier program? Find out if there are restrictions
on how you can use the voucher.
Which is Better - a Free Ticket
or a Cash Voucher?
This depends of course on
the restrictions that may be associated with the free ticket and
the value of the cash voucher. And, much of the time, it
is a moot point because you won't be offered a choice.
You should try and guess as
to where you might choose to fly with your free ticket, and then
consider what a typical airfare to fly to that place would be,
and this will give you a bit of a feeling for the equivalency of
the ticket compared to the voucher.
One last thing to consider -
you probably won't earn frequent flier miles on a free ticket,
but you will if converting cash into a roundtrip ticket.
This might mean the difference of potentially 5000 or more
frequent flier miles, which at a theoretical value of perhaps 2¢
each represents a $100 value.
Airline Specific Policies
While most airlines will
negotiate most things in most situations, there are two
exceptions of a sort.
However, even in these
situations, if there is a shortage of volunteers (rather than the
more common surplus of volunteers) there may still be some extra
'sweetener' you can secure from the gate agent.
United
Airlines
United has a formal bumping
compensation policy - it pays $400 in travel vouchers.
Delta
Airlines
Delta has instituted an
interesting system whereby it operates an auction, giving
preference first to would-be volunteers who offer to accept the
least amounts of compensation.
Be sure to also read the
first part of this two part article, which is about
negotiating non-cash type
extra benefits when being bumped.
Part
of a series on being bumped from flights, see the other
articles in this series listed on the top right.
Related Articles, etc
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Originally published
24 Jul 2009, last update
30 May 2021
You may freely reproduce or distribute this article for noncommercial purposes as long as you give credit to me as original writer.
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