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Journalist's Hands-On Experiences | 'Free tickets' set no one free: Consumers face difficulties after purchasing airline tickets with low price

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2024.12.17 09:16
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Purchasing suitable airline tickets is an essential part of the journey. With the tourism industry recovering, many airlines have launched promotions to attract customers, among which "free tickets" are the most appealing. Travelers can purchase round-trip tickets on designated routes for zero cost, saving significant travel expenses. Naturally, "free tickets" are in high demand, but even with a ticket in hand, traveling with it is not so simple.

Ms. Cheung shared her experience of buying a "free ticket" but then facing changes and cancellations. Hong Kong Airlines suddenly announced on August 5 that it would issue free tickets again, available for purchase from August 6 to August 12, on its official website. Ms. Cheung was lucky enough to secure a ticket for a round trip from Hong Kong to Beijing and received a confirmation email.

However, 20 days later, she received a text notification about changes to the departure times for both legs of the trip. The departure on November 5 changed from 20:45 to 20:55, and the return on November 10 changed from 09:30 to 09:15. Since the minor changes, Ms. Cheung accepted them. A month and a half later, however, she received another text about a second change, this time affecting the departure time, which shifted from 20:55 to 15:55, requiring her to take an extra half day off work.

The final change came three days before departure, moving the outbound date from November 5 to November 6. Ms. Cheung immediately called the airline for clarification, but the customer service representative claimed the original flight was canceled. Since her holiday, hotel, and attraction tickets were already booked, there was no way to negotiate a resolution. The representative offered a refund without compensation, leaving Ms. Cheung feeling dismissed. Ultimately, she had to opt for a refund and quickly purchase tickets on other platforms.

Regarding "free tickets," Ms. Cheung noted that the difficulty securing tickets depends on the final destination (popular locations like Japan and Taiwan). The ticket-grabbing events usually start at noon, but one often has to wait until the afternoon to actually access the event page for selection. The waiting period is the first major hurdle, while the second hurdle is that if the desired travel dates have no available tickets, she would have to try different dates multiple times. Consequently, the finalized travel dates often differ slightly from her original expectations. Additionally, "free tickets" are not entirely free; additional fees and fuel surcharges remain. For instance, although her ticket from Hong Kong to Beijing was listed at zero dollars, she paid HK$694.

As for the cancellation terms, the order confirmation on the Hong Kong Airlines website vaguely states at the bottom that this fare may be subject to special rules and restrictions, meaning they retain all rights to interpretation, and any changes are at the passenger's own risk. The confirmation email also included numerous notes but only mentioned conditions for passenger-initiated cancellations or changes without addressing whether the airline could modify the flights. It wasn't until she clicked through the terms and conditions that she discovered the airline indeed mentioned, "After issuing tickets, we may still need to change the scheduled flight times." The email also stated that if they made a significant change that the passenger could not accept and could not book an acceptable alternative flight, the passenger had the right to a refund according to clause 10. Ms. Cheung pointed out that the airline typically does not make changes immediately but waits until consumers have finalized their hotel arrangements before casually sending out notifications, sometimes turning a normal arrival time into a red-eye flight or forcing a change in planned check-in times.

Similarly, Ms. Tao encountered sudden changes to her flight after purchasing a "free ticket." Last year, she secured a ticket for a round trip from Hong Kong to Nanjing, but upon arrival at Nanjing Airport, she received an email stating her return flight had been changed. The email did not clearly indicate what had changed, so Ms. Tao assumed it was just a delay. When she arrived at the airport at the original flight time, she discovered that the flight had been canceled, and the return flight was rescheduled for the next day. Despite calling the airline, she was not informed of the reason for the change and could only take the newly arranged flight. If she opted for a refund, she would not receive any money back, so Ms. Tao had to stay an extra day in Nanjing.

"Free tickets" come with risks, and consumers must make their own choices

Professor Terence Chong, Executive Director of the Lau Chor Tak Institute of Global Economics and Finance at CUHK, pointed out that one reason tickets are cheaper is that airlines oversell tickets—selling more tickets than available seats. They have the right to ask excess passengers to leave the flight. In other words, the benefit of purchasing a "free ticket" is the low price, while the risk is the possibility of being bumped from the flight. Therefore, consumers need to weigh their options when choosing tickets. However, he also noted that consumers can buy travel insurance in advance to cover some additional costs incurred due to ticket changes, such as time lost and accommodation fees.

Prof. Chong also mentioned that "free tickets" are currently a business model used by individual companies, which can drive economic growth for those airlines. Still, it is not widespread and will not significantly impact the overall economy.

He explained, "Whether it can stimulate the economy depends on whether it generates profit." If this method yields more revenue for the company than before, it can reflect economic growth. From an economic perspective, filling a plane from half full to full under the same labor and material costs allows airlines to minimize losses from empty seats, thus creating positive economic benefits.

Traveler compensation depends on the reason for flight changes and requires careful attention to refund and change policies

Young DAB Chairperson and practicing lawyer Victor Lau stated that airlines schedule flights with designated dates and times. However, delays or cancellations are common due to staff shortages, weather issues, and air traffic control. Different airlines have their internal guidelines for handling these situations, and consumers need to pay attention to the information provided by the airline and airport, such as the latest arrangements (times, boarding gates, etc.). He also noted that "free tickets" typically come with some specific refund and change terms, allowing airlines to manage these tickets effectively. How consumers can claim compensation depends on the reason for the flight changes. If the airline never had the flight in the first place, it would be considered false advertising; if the airline cancels flights without reason, it constitutes a dispute between the consumer and the airline. Consumers can file complaints with the Consumer Council, small claims tribunal, or customs and apply for compensation, making it crucial for them to understand the cancellation terms.

Lau also suggested that the government could take inspiration from the high-speed rail ticketing system, requiring airlines to display the number of remaining tickets and placing oversold tickets on a waiting list. This way, even if overselling occurs, consumers can board based on the order of their purchases, which provides a psychological preparation. Additionally, the government could introduce changes to travel insurance in collaboration with insurance companies to protect consumer rights.

Airlines claim no differential arrangements exist

In response, Hong Kong Airlines stated that according to company policy, all passengers are equally protected regardless of ticket type, and there are no differential arrangements. If a passenger's original flight is canceled or changed, they will receive an advance notification and can choose to reschedule or apply for a refund (including any paid additional fees and fuel surcharges). Refund methods are communicated via email, and passengers can also express their rescheduling preferences on the Hong Kong Airlines website or apply for a refund. If passengers choose to continue their journey, the airline will arrange for them to take the next available flight with seats.

While losing a free ticket may seem minor, it can lead to losses such as service fees and hotel costs. Consumers should remain vigilant and understand the terms so they can pursue appropriate avenues for compensation if their interests are harmed.

Related News:

HK Airlines: Bookings in Christmas, Spring Festival reach 85%, additional flights to Seoul, Tokyo to be launched in winter

HK Airlines to give away more than 25,000 free air tickets from Monday

Tag:·airlines· free ticket· low price· business model· economic growth

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