https://www.luxtravelsite.com/site-content/luxtravelsite.com/images/167707024410451.png

Uh oh: United updates its policy on incorrect fares and system-gaming

NEWS - 22-02-2023


There is a lot of talk surrounding mistake prices, but good luck getting them honored on United Airlines.


On Friday, February 17, the Chicago-based carrier made some substantial revisions to its contract of carriage agreement for customers who purchase mistake fares.


United has updated its definition of mistake fares to include "tickets priced at a zero or close to zero fares," and as of right away, United "reserves the right" to cancel those prices.


In addition, the airline included language guaranteeing reimbursement for any "reasonable, actual, and verifiable out-of-pocket expenses paid by the purchaser in reliance upon the ticket purchase."


In other words, if you buy a nonrefundable hotel, vehicle, or tour package along with a mistake fee, the airline will cover that cost when it decides to cancel and refund the ticket in order to make you whole. 


The carrier also offered some more clear explanations of what it means by an "improper reservation" in addition to the updates surrounding incorrect fare policies.
Consider yourself specifically forewarned if you purchase flights from United that "are or likely will be delayed" and then "make a claim or obtain a reward" from United.


In some circumstances, your ticket is subject to cancellation, and United may also close your MileagePlus account, remove your miles, nullify any upcoming flight credits, forbid you from traveling with the airline, and charge you for any sums due in connection with these fraudulent actions.


Although United did not specify what it meant by "booking a delayed ticket and subsequently filing a claim or obtaining a benefit from the airline," I would assume that this update may be directed at passengers who consciously book delayed flights at the last minute in order to receive compensation.


Long-delayed passengers frequently receive future travel vouchers or miles from United, and under the EU 261 regulation, compensation is mandated on flights to and from Europe. 


You are entitled to compensation of 600 euros (about $640) when a long-haul trip to or from the European Union is delayed by at least four hours or canceled as a result of a problem under the airline's control.
Flights to and from Israel, as well as a few other nations, are subject to similar regulations.


United appears to be against passengers abusing the system by scheduling delayed flights in order to obtain compensation.
In fact, the price of a last-minute walk-up ticket for a trip between the United States and Europe that is delayed could be less than the amount of money you would be compensated under the EU 261 law.


Although United declined to explain the rationale behind these contract of carriage revisions, it's theoretically possible that some passengers have abused these guidelines and demanded reimbursement in the thousands of dollars.
With these new regulations that might result in a lifetime ban (along with other penalties from the airline), the carrier is now putting an end to that behavior. 


From the standpoint of the passenger, however, not much actually changes when a mistake fare policy is incorporated into the contract of carriage.


That's because American airlines are obligated to adhere to Department of Transportation regulations, which in fact have a clause addressing mistake fares.


As part of its ban on post-purchase airfare hikes, the DOT mandated in the early 2010s that airlines honor these tickets.
The regulation didn't appear to be intended to honor errors, though.


After establishing that mistaken fares are, in fact, incorrect, the agency altered its regulation in 2015 to let carriers cancel and reimburse them.
In accordance with the revised regulation, the DOT also mandates that airlines pay back any out-of-pocket expenses passengers incur as a result of relying on their tickets.


Although this is the first time the airline has included the rule in its contract of carriage, as you can see, United's modification regarding mistake pricing follows the DOTs.


You must accept the terms of United's contract of carriage in order to purchase a ticket from the airline.
You cannot continue with the purchase procedure without selecting the "I agree" checkbox.


Thus, whether you like the new regulations or not, you must follow them if you want to fly with United.
If not, heed this warning: you risk being denied access to United Airlines, disqualified from the MileagePlus loyalty program, or worse.