To Save on Flights, Clicking “Buy” is Not the End

This is an updated version of an article originally posted to our .com blog, which was unfortunately hacked a few months ago.

Doing a price comparison before booking a trip is standard procedure for saving money on travel.  There are search engines such as Kayak that tally up ticket prices for airlines and third-party sites, and even academic theories on when is the best time to buy.  But regardless of when you pull the trigger, there are still ways to save after making that flight purchase.

The third-party travel website Orbitz, for example, offers a price assurance coverage, which promises consumers that, once they book their hotel or flight, if the price drops and anyone else books the same exactly itinerary (same dates, flights, and restrictions) for less through Orbitz from then on, they will be refunded for that difference. Refund values range from $5 to $250 for flights and $5 to $500 for hotels, and there is no need to submit a request.  Orbitz keeps track of all purchases made through its website, and if you qualify for the price assurance, you will automatically get a check in the mail 6-8 weeks after you’ve completed the trip.

But what if you see lower fare soon after you book your ticket?  This happened to me twice recently.  I spent a while tracking flight ticket prices, and as the travel date approached, finally decided to buy.  No less than a few hours later, though, prices for the same exact itinerary had dropped by around $20!  If this happens on the same day in which you booked your ticket, you usually have two options.  First, you can appeal to the company’s “low price guarantee” policy, which essentially is an offer to undercut competitors’ rates. Many travel and airline sites have this, including Orbitz, Expedia, and even United.  All you have to do is submit a claim on the website with links to the lower fare for the exact same itinerary and wait for customer service to verify it.  Remember to also make several print-outs of the screen with the lower fare, so you have proof if you run into trouble having it approved.  Orbitz’s and United’s guarantee apply only to the day of booking, while Expedia gives you 24 hours to find and claim the lower fare.

If you find a lower fare within 24 hours, another option is to simply cancel your original reservation and book the other one.  Most sites give you 24 hours to cancel without any fees. Third-party sites have a policy of retaining their own booking fees if you cancel, but several of them have not been applying fees for the last two years or so anyway. Doing this is a better option if you are afraid your lower fare guarantee claim will not be approved, or if you have a coupon for another site that can now be used.

Last week, I chose to just cancel my reservation and re-book it.  Earlier in the day, I had booked my flight through Orbitz because it had the cheapest fare for the exact itinerary I wanted (United did not even show that itinerary when I searched for it in the morning).  But when I ran the same search in the afternoon, the fare had both dropped on Orbitz and was now showing on United for the same price.  Orbitz offers a $50 coupon valid on your next trip through its “low fare promise,” but I had a coupon for 10% off a purchase on United (earned through an old United promotion).  I decided 10% off now was better than a potential $50 in savings in the future, since the latter would depend on validation from Orbitz’s customer service.  I canceled my Orbitz reservation online without any penalties, and re-booked my itinerary on United. Ultimately, I saved $50 from what I would have spent had I kept the reservation I made that same morning.

Price comparison does not end when you click “buy.”  If you keep track of prices on your itinerary for another 24 hours, you may find a pleasant surprise.  Who knows – it could even be that the fare on an itinerary you liked even better than the one you booked drops too. And if you book on Orbitz, the search keeps going; their price assurance means you could get a check later on if someone else books your same itinerary for less.  And if you can’t find a lower fare and don’t get any money back, by doing this follow-up you can at least rest assured that you got a good deal on your travel plans.

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Paying Dearly for Travel Mistakes – and Avoiding Some of the Costs

I just came across today’s entry on the NY Times’ blog “You’re the Boss”, which tells a story that I believe resonates with many of us.  Jay Goltz, a small business owner in Chiago, explains how he lost $1,400 in airfare – and possibly some more in hotel fees – by accidentally booking the wrong dates for his trip.

We all make mistakes, and frequently there’s a cost involved in that.  In his case, he ended up at the mercy of Air France and its rules, as it had been almost two weeks since he had booked his original flight: Continue reading

Paying for Education, One Purchase at a Time

If you have student loans to repay to Sallie Mae or are trying to save for education through a 529 Plan, you may want to use Upromise to help you out.  Upromise is a service that gives you cash for certain purchases from grocery stores, restaurants, online retail sites etc., which can then be transferred to your student loan account or 529 Plan – essentially a cash back program under which the cash is redeemed for education expenses.

To be honest, the cash back rates for Upromise are generally lower than most other programs such as ShopDiscover.  However, Upromise covers a much larger number of merchants and combines different programs to generate even more potential rewards.  Discover’s 5% cash back at Target.com and the Apple Store, for example, beats Upromise’s 2% and 1% rates at these online sites, respectively.  Upromise, however, offers 2% cash back on eBay and 1% on several travel sites, such as Orbitz and Travelocity, while Discover has not partnered with those sites as of yet.  Furthermore, Upromise also gives up to 8% cash back on restaurants that belong to the Rewards Network (for a full list visit rewardsnetwork.com) and on in-store purchases at a few places such as Bed Bath & Beyond (1%) and the Sunglass Hut (6%).

Upromise also allows you to add your grocery cards to your account, so that you get cash back on Upromise for certain items on top of your grocery stores’ discounts and/or points.  Participating stores include Safeway, Harris Teeter, and CVS.

Now the best feature of Upromise I think is that it allows you to add friends and family to your network.  That is, if they create a Upromise account and add you as a beneficiary, they can use the cash back program to help you pay for your education.  Alternatively, for online shopping, you can simply send them a “guest shopping” link, so that they do not even have to sign up for Upromisem but you can still earn cash on the program whenever anyone shops through that link.  So if your mom usually does the groceries and uses store cards, you may want to have her sign up for Upromise and help you pay off your loans; and if your grandparents are coming to visit, you might to want to send them your Upromise “guest shopping” link so that their trip can help you get some money into your 529 Plan.