The Airline Refund Crisis

and the rise of pay-as-you-fly
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One of the biggest issues in the travel sector since the start of the pandemic has been the thorny issue of refunds.

When global travel was effectively stopped, the industry had to work out what to do about the tickets that had already been paid for.

Companies and individuals had paid out billions of euros, pounds and dollars on tickets that would no longer be used.  Where did that money sit? Could you get it back and within what timescale? Some airlines said they wouldn’t give money back but only issue vouchers. Some in the industry faced an existential crisis because of the refund demands.

The repercussions of the decisions made at that time are still playing out in the sector.

The German Business Travel Association (VDR) has been calling for airlines to only take payment at the moment of departure in order to resolve the issue. Lufthansa has now made changes to its Pay-as-you-Fly scheme for corporates to allow this. Will other airlines follow suit?

In this latest BTN Podcast, the discussion features Christoph Carnier, president of the VDR, Guillaume Bizet of Areka Consulting and our own COO, David Bishop of Gray Dawes Group, along with regular host Mark Frary.

And for business travel updates on the go, be sure to check and follow YourCast – our brand new podcast for all things business travel. Search Gray Dawes YourCast wherever you get your podcast of click on the following links:

To help you navigate the changes of business travel, we’ve created the brand-new Traveller Toolkit. This invaluable online resource is packed full of easy-to-use guides and checklists for every stage of every journey. We detail exactly what you need to know and do before, during and after your trip.

You’ll also find innovative and interactive virtual trips, which walk you through each step of  being at the airport, on the train and in the hotel. You can even check the travel restrictions and health status of your destination with our comprehensive COVID-19 Country Tracker, updated five times daily to ensure you have the very latest information to help keep you and your travellers safe.

Travel is changing. But with common sense and a good TMC behind you, travellers should have the confidence to once again take to the skies. It’ll soon be business as (un)usual.