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Originally Posted by Platy
I would be most enlightened to know, NM, whether you know this for a fact. Has someone in QF told you this? Have you seen this written in their process documentation? Or is this your own personal assessment of their logic?
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It is my interpretation of discussions with several people, including QF accounts, travel agents and others in the industry. I would be extremely surprised if it was ever documented anywhere by the airlines. This is not unique to Qantas, but a common practice in the airline industry.
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Originally Posted by Platy
Remember that it used to be possible to book, change and cancel flexible fares such as domestic J WITHOUT paying for them until time of travel (and WITHOUT paying the regressive $27.50 booking fee using the phone). In those days the 6 week refund also applied so I can't see that your logic is particularly valid.
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Indeed, and some people extracted maximum benefit from that. But as I noted above, this policy is not unique to Qantas.
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Originally Posted by Platy
I do not believe this is a justifiable reason for holding onto people's money for 6 weeks. Do you?
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Certainly not. And I think I noted previously that I do not condone the practice, but merely gave an explanation as to why it was introduced in the first place. And the example that commenced this thread has no justification for delaying the refund process in my opinion.
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Originally Posted by Platy
Are you happy to have $1,000s riding around your credit card for that length of time to your total disadvantage (not just the interest accrued but the fact that your credit limit is being compromised as well).
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I would not be at all happy. And I have been in a situation where I had to cancel a $10,000 ticket the day before I was due to depart. That ticket was replaced by two new tickets, costing a total of over $15,000. I was looking down the barrel of a $10,000 entry on my Diners Club card that would need to be paid to DC before the 6 week refund cycle quoted by Qantas. It was through the subsequent discussions with various people at QF accounts and our corporate travel agent that led to my understanding of the background.
I was much relieved when the credit was processed in about 3 weeks and just days before the DC payment was due.
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Originally Posted by Platy
Do you accept this type of behaviour from other suppliers (hotel, car hire, companies, restaurants, etc)? I doubt it. If a different vendor accidently mischarges you or whatever you expect an immediate refund against your card, which they seem very easily to be able to do.
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Again I must point out that I do not find this acceptable behaviour. I Have never said that I do find it acceptable. I just understand why the airlines do it. That does not mean I think it is right.
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Originally Posted by Platy
Don't you think also that the huge cost of flexible tickets (CNS-BNE busines class just went up 3.25% not to mention recent fuel surcharges) that we are paying for just that - flexibility?
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With any airline ticket you are paying for a service. Some of them involve flexibility, some don't. The airlines set their fares based on what they believe the market will bare. Increasing fare is the airline's prerogative and they can charge what they like. We have the choice as to whether we pay what they are asking, and other airline's have the choice to operate in the same market of they believe they can make money - of course that is providing they meet the regulatory requirements which may or may not be fair, but that is another story altogether.
So yes, I do believe we pay for flexible tickets because the airlines know we perceive the flexibility as a benefit worth paying extra. But false bookings or booking seats that we never intent to fly just screws things up for everyone.
People have also been known to do things like purchase seats on multiple peak time flights because they know the busy routes (lets us SYD-MEL on a Friday evening) can get full. So they book a seat on each of the afternoon flights knowing they will use one of them and just cancel the others. That is a pretty selfish approach that causes all sorts of ramifications, including the delayed refund policy.
At least if the booking has not been ticketed, the airline will cancel it at some time before the flight closes and they can get someone else onto the flight. But if the ticket has been issued (and hence charged to someone's credit card), the reservation remains active until the flight is closed at which time the person is deemed a no-show and the gate agents can scramble to find a standby passenger for the seat.
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Originally Posted by Platy
Perhaps it is done because they want you to be COMMITTED to spend that money with them even if you cancel - they would much rather keep the money riding as a credit than pay you out because it ensures that you spend that money with QF sooner or later (and in the mean time they are earning interest on the credit, not you!).
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Sometimes they don't offer the ability to use the refund amount as a credit, such as in my own example above. I was not given the option to use the $10,000 cancelled fare as a credit towards they other two tickets purchased at the same time.
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Originally Posted by Platy
QF/Jetstar and others are quite simply screwing their customers with this sort of behaviour - it is not justifiable to treat customers in that fashion.
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I am not disagreeing with you.
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