I think we can all agree that having something to look forward to right now is needed more than ever, so while we are in the opening days of 2021, there are many folks that are thinking vacations. Even if they don’t expect to travel until the summer, fall, or later, travel is so high on the list of things we missed last year, that the urge to start planning a trip – now – is huge!
Still, there may be some concerns about booking right now when things are still so uncertain – especially if you’re considering a trip that’s months away – because if there is one thing we learned from 2020, is that things can change quickly! However, there was actually one good thing that came out of the travel challenges during the pandemic, and that is that most destinations have become quite generous with cancellation policies. Whether it is full and complete refunds without penalties – often as late as 24 hours prior to departure – or travel credits that are good for several years, airlines, cruises, and destinations recognize that planning travel at the moment requires flexibility and they want to help their clients have peace of mind when booking a trip. While this is all good news, it’s important to note that not every destination offers the same type of cancellation flexibility, so it is super important to read that fine print and/or have your travel agent explain your options before you book.
So, let’s take a look at how some destinations and other vacation suppliers are currently handling cancellations.
Hotels and Resorts
While many hotels have offered refundable cancellations within 24 hours of arrival, generally if you have a full vacation package at a resort, the more typical policy is final payment at least 30-45 days prior to your arrival. Now you’re more likely to find easy change/cancellations within 24 hours with no penalty or fee. If the destination issues you a resort credit rather than a refund, you will generally have as much as a year or more to use the credit. Policies of course vary by hotel chain as well as when you first booked. Here are examples of current cancellation policies from a couple of popular vacation destinations:
- Walt Disney World “Book With Confidence” – To provide additional flexibility, Disney-imposed change and cancellation fees are waived up to the date of check-in for reservations with arrivals through April 30, 2021.
- Sandals/Beaches Free Room Cancellation and 100% Refund – Free room cancellations for reservations cancelled 31 days or more prior to check-in date (with the exception of the Over-The-Water Suites). This is only applicable to the land/room portion of the booking. Flight cancellations are subject to airline carriers’ penalties and restrictions. In addition all reservations made prior to January 31, 2021 for travel until August 31, 2021 will automatically receive insurance coverage for medical expenses during resort stay and also includes several benefits while away. Best of all, the travel insurance is free, purchased on your behalf by Sandals/Beaches.
Cruises
As cruising has yet to restart after the pandemic, cruise lines – most of which are booking will into 2022 and beyond – are focused on providing long term options for those who want to plan a cruise. As a result, cruise lines have all stepped up to provide extremely generous cancellation policies – unheard of in an industry that typically required payment in full several months prior to sailing, with serious penalties for cancelling after that. Here’s how 3 of the most popular cruise lines are currently handling cancellations:
- Royal Caribbean – Cancel up to 48 hours before you sail and get a future cruise credit valid to book and sail by April 30, 2022, or 12 months after the date that you cancelled your original sailing. This policy currently applies to all cruises booked on or before January 31st, 2021.
- Norwegian – For cruises through June 30, 2021, you may cancel up to 15 days prior for a Future Cruise Credit (FCC), or a full refund when you cancel up to 60 days prior. For cruises sailing July 1 – October 31, 2021, you can cancel up to 15 days prior and receive a FCC, or a full refund when you cancel up to 120 days prior.
- Princess – Under their “Book with Confidence” policy, for bookings made through March 2, 2021, you can cancel up to 30 days prior to sailing for voyages departing through October 31, 2021, and receive your cancellation fees back as a Future Cruise Credit. Your FCC can be used on any sailing that departs within one year of your original departure date or May 1, 2022, whichever is later.
Airlines/Amtrak
Cancellation and change fees for flights and train tickets are one of the biggest changes from the pandemic, as refunds are far easier to come by than they ever have been previously. Airlines are now required to issue refunds if they cancel or change flights, and many have emphasized the flexible options they offer for customers who need to change or cancel. While every airline is different (read their policies carefully!), a number of airlines have discussed making easy and flexible cancellations/changes permanent – or at a minimum at least through 2023 or 2024.
As for Amtrak, most fares can be change or cancelled without penalty. It’s important to check the fine print on this as different fare types may have different stipulations, and some do have cancellation fees, including sleeping car accommodations if cancelled less than 121 days prior to departure.
A Word About Travel Insurance
One of the best ways to protect your vacation investment is with the purchase of travel insurance. This is something that I’ve always recommended to my clients, even before anyone had ever heard of coronavirus, because vacations are a sizeable investment in many cases – and life happens. Things like your flight getting cancelled due to weather (blizzards, thunderstorms, hurricanes etc.), or you missing your connection, can rapidly add unexpected costs to your trip. To say nothing of expenses due to an accident or illness outside of the U.S. (where many American health insurance plans don’t cover claims). So, travel insurance is something that you always want to get, pandemic or not. Now whether insurance companies will cover COVID related claims varies by company and policy. It is, admittedly tricky at the moment, since COVID-19 became a “named event” back in March, so many insurance companies consider it a known and foreseen event and will not cover claims due to this coronavirus. Others *may* cover it if COVID-19 is specifically noted in the policy as a covered reason for cancellation. Some companies do offer “Cancel For Any Reason” (CFAR) policies, and with these it is possible that some claims related to the current pandemic might be covered, but again, your mileage may vary. While CFAR policies generally need to be purchased at or shortly after the trip is booked, are more expensive – and don’t typically reimburse 100% – in some cases this may be your best option if available. It is super important to compare the different policies that are available to you, read the fine print, and ask the carrier for clarification on any coverage questions you have. No matter what, travel insurance should always be part of any vacation you book, so that you can protect your vacation investment as much as possible.
I’ve always said that there’s never a bad time to book a vacation, and now more than ever that is true! And happily, with flexible change and cancellation polices, you can do so with the peace of mind in case “life happens” to require a change to your plans.
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