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Travel
A photo of a woman at an airport waiting to board her flight shutterstock.com / GBJSTOCK

73% of travelers have lost money on flight disruptions — Airlines don’t compensate for your missed plans. Here’s how to recoup the ‘delay tax’

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.​

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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.

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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.​

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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.”

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Eric Esposito Freelance Contributor

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.

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