Overbooked and Canceled Flights: What are Your Rights?

Even the most organized business traveler is sooner or later going to hear those dreaded words, "Sorry, your flight has been canceled." And most people who fly regularly have encountered that most inconvenient of situations - an overbooked flight. However, you do have rights, even though it may sometimes seem as though your only right is to be ignored by the harassed ticket counter staff.

A $10 Billon Problem

Flight delays and canceled flights can be a huge problem, both for the individual traveler as well as the economy as a whole. It's estimated that flight delays cost around $10 billion in an average year and, as every business traveler knows, a canceled flight can be a major inconvenience when it comes to trying to reschedule meetings and events. Whereas all airlines have cancellations and delays, some have fewer than others. In general, the most reliable US airlines are Southwest, JetBlue and Continental.

Overbooked Flights

As most frequent travelers realize, all airlines routinely overbook flights as, on any given day, a certain number of passengers won't show up for whatever reason. The overbooking of flights is determined by a process known as yield management, which is complex and sophisticated. The goal of this system is to sell as many seats at the highest fare, as well as to ensure that every plane is completely full. The system is so accurate, that the chances of being bumped are slim - only about one passenger in every 10,000 is bumped. All airline reservations agents are required to tell you if a flight is overbooked, although they are not required to give you exact numbers.

But what are your rights? Well, as soon as you purchase a ticket, you are essentially agreeing to be bumped from an overbooked flight. However, nobody will be involuntarily bumped until an offer of compensation has been made and volunteers have been found to take another flight - and there are usually enough volunteers. If not enough people volunteer, then the airline will choose people to be bumped. If you are bumped involuntarily, you are entitled to monetary compensation as well as a seat on the next flight.

It's something of a mystery how the airlines decide who is going to be bumped; generally if you bought a cheap ticket or checked in late, you are at greater risk. If you purchased a full fare ticket and/or are a premium flyer with your airline, your chances of being bumped are reduced. Airlines may give preference to someone who is traveling for an emergency or due to some hardship - but not for a business meeting.

Sorry, Your Flight is Canceled!

Basically, if your flight is canceled, your airline must provide you with a seat on another flight; ideally this should be as close as possible to the time of your original flight, although their obligation is simply to get you to your destination, not necessarily on time. Airlines actually aren't obligated to provide you a seat on another carrier in the event of a weather delay (only for delays due to mechanical reasons) although most airlines will work with you to get you to where you're going. And you are generally entitled to hotel and meal vouchers in the event of a mechanical delay, but not in the event of a weather delay.

If you are provided with a seat on another flight due to a cancellation, legally the airline doesn't have to compensate you any further. However, if your new flight is leaving more than four hours later than your original flight, you can ask for a hotel voucher. If the new flight is unacceptable, you are entitled to a full refund, even on a non-refundable ticket. All airlines have a contract of carriage which explains much of this; you can find it on the airline Website or at the ticket counter.

Don't Forget...

If your airline does provide you with a seat on another carrier, ask the agent for the booking reference or confirmation number - that way you know the seat is confirmed. You should also not take it upon yourself to buy a ticket on another carrier and then try to get a refund on the original ticket after you have taken the flight. Your airline isn't obliged to help you. And most airlines will only allow one change to the ticket in the event of a cancellation, although if a better flight option becomes available, always ask if you can change again.