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Here’s a simple, easy travel habit that could save you money the next time you buy airline tickets: After you book your tickets, check the fares again within 24 hours.
Why does this help? Because ticket prices can drop in that time frame and a government policy gives consumers 24 hours to get out of a ticket purchase penalty free.
“Over two out of three ticket prices will drop at some point within 24 hours of the original search or booking, with an average saving of 14%,” and sometimes airfare can drop as much as 20% in that window, according to travel research company Hopper. (Hopper's findings are based on testing 16 million searches.) For a $400 flight, that range translates to savings between $56 and $80.
Since 2011, this 24-hour cancellation policy has been in place by the Department of Transportation and works as long as the tickets are made at least one week in advance of the scheduled departure time. According to Hopper, five airlines (American, Delta, United, Southwest, and Frontier) extend this policy to tickets purchased within one week of departure.
There is one loophole consumers should be aware of. Caroline Costello at SmarterTravel.com warns, “When you book with American, the airline offers the option to put a flight on hold at no charge for 24 hours. If you don't select this ‘hold’ payment bubble when booking with American online, you aren't eligible for a no-charge refund within the 24-hour period,” Costello writes, explaining that American is capitalizing on the “or” in the Department of Transportation rule that “requires carriers to hold a reservation at the quoted fare for 24 hours without payment or allow a reservation to be cancelled within 24 hours without penalty.”
In other words, airline companies are required to do one (hold for 24 hours without payment) or the other (allow for free cancellation within 24 hours), and American’s policy chooses the former.
“It's the only major carrier that does this,” writes Costello.*
Costello adds that “fare lock” options offered by many carriers “are a sham.” Take for example United’s promise to hold a booking for 72 hours for a charge of $6.99. This lacks appeal given the fact that when you buy a ticket, baked into that deal is a 24-hour window to deliberate and cancel that purchase for a total refund.
Consumers can take advantage of this rule and fluctuating prices. Hopper says it is possible for consumers to "potentially book, cancel and rebook repeatedly, using the 24 hour cancellation policy multiple times."
So keep this simple habit in mind the next time you book your flight. It's easy. It takes only a few minutes. And it could save you a handsome chunk of change.
*Correction: An earlier version of this article included a quote from Costello that said American charges a hold fee if customers forgot to cancel or book their tickets within 24 hours. American does not charge a hold fee if you don't cancel or book tickets - it simply cancels your reservation after 24 hours.
