Flight delays aren’t just a drain on your time and emotions. These far-too-frequent travel frustrations can tack on a lot more money than you intended to spend.
A survey from the passenger rights platform AirHelp shared with Newsweek gives a sense of just how common and costly these delays are getting. According to their findings, 57% of Americans said they waited at least two hours for their flight, while another 14% said their flight was canceled in the past 12 months.
For those caught in these travel nightmares, there were usually a lot of extra bills to pay. In fact, these hidden airline costs now have a nickname: “the delay tax.”
AirHelp found that 73% of U.S. passengers lost money due to this “delay tax.” The biggest setback was from missed earnings potential, which AirHelp estimated at $484.19 per traveler. After that, AirHelp reported that passengers spend an average of $311.87 on accommodations, $221.33 on local transit, $114.58 on food and drink, and $93.72 on clothing and toiletries.
Speaking with Newsweek, AirHelp’s CEO Tomasz Pawliszyn pointed out the immense human toll these delays put on passengers, saying, “Disruptions cause significant stress and frustration for travelers, and many even miss important personal events or experience health impacts as a result.”
Worse, AirHelp also finds that, while 81% of passengers know they have rights, a staggering 79% don’t know what those rights are or how to deal with lost time and money.
Will airlines swoop in to save your wallet?
Some regions like the European Union have consumer protections on the books to compensate you for flight delays. In the U.S., not so much. Instead of federal laws, what you receive in delay reimbursement totally depends on your airline’s commitments.
But keep in mind that a “commitment” in an airline’s mind probably doesn’t line up with all the costs you paid during your delay or your missed plans. The less tangible and quantifiable your losses, the less likely you’ll see that money back from an airline.
Professor Michal Strahilevitz from Saint Mary’s College of California argues airlines should take customer care more seriously “in an ideal world.” But she admitted to USA Today that in the current framework, “Airlines do not compensate passengers for pain, suffering, or emotional distress caused by delays.”
And data shows that many passengers begrudgingly accept this “delay tax” by doling out their own dollars. AirHelp found that well over half of passengers didn’t try to get reimbursements either because they didn’t know it was possible or because they thought it was too difficult.
Must Read
- You can now build wealth like a landlord for as little as $100 — and no, you don't have to chase down rent or take 3 A.M tenant calls
- Goldman Sachs used to hoard prime real estate deals for the ultrarich. Two ex-analysts just opened the door for $250
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Can you dodge the “delay tax?”
Although it’s not necessarily fair, passengers have to accept the reality that most, if not all, delay-related costs will fall on their shoulders.
But all that doesn’t mean you’re vulnerable to the “winds” of fate on flight day. Sure, you can’t predict a delay or cancellation, but you can protect your money before heading to the airport.
First, know your rights. As mentioned above, some regions like Europe have consumer protections in place for travelers, so be sure you know what an airline’s legal responsibility is if you’re traveling internationally.
Domestically, you can check the full list of what U.S. airlines cover on the handy U.S. Department of Transportation’s “Airline Cancellation and Delay Dashboard.”
While knowing about these consumer protections is great, wise passengers are even more proactive because, even if an airline provides a meal voucher or comped hotel room if you have to stay overnight, they do not have to cover the costs of your other missed hotel reservations or plans. Ideally, that means buying a comprehensive travel insurance plan that will help you recover costs if your flight falls through.
But the ultimate “travel hack” is to get super obsessive about documentation. Save every receipt for every purchase. And don’t forget to take plenty of screenshots or photos of delay notifications. While that may seem excessive, it can all pay off should you need to file a claim down the line.
As Raymond Yorke of the travel protection agency Redpoint Resolutions told USA Today, “The travelers who get reimbursed quickest are almost always those who kept receipts, took photos, saved emails, and wrote down what happened — in real time.”
You May Also Like
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
- Robert Kiyosaki issues grim warning for baby boomers. Many could be ‘wiped out’ and homeless ‘all over’ the country. How to protect yourself now
Eric Esposito is a freelance contributor on MoneyWise who loves making financial topics accessible and understandable to readers. In addition to MoneyWise, Eric’s work can be found in publications such as WallStreetZen and CoinDesk.
