High travel costs are driving more people to choose cheaper, nonrefundable booking options for flights, hotels and rental cars.
But consumer advocates warn that what seems like a sweet deal upfront could cost travelers everything if their plans change.
Christopher Elliott, a syndicated columnist, consumer advocate and founder of The Elliott Report, recently referred to 2025 as "the year of nonrefundable travel."
He says when you book a hotel room or rental car at a discounted or special rate, there’s little chance of making changes to that reservation.
"Once you've paid the money, you're locked in," Elliott said. "If you have second thoughts, too bad, they're keeping your money."
Watch as travelers say what they think about non-refundable travel:
Know what you’re booking
The appeal is understandable. Traveler Daniel Osterman says he's willing to take the risk for potential savings.
"I'm OK with the prepay. I think it's a good idea if you're able to save a bit of money on something," Osterman said.
But Kelly Sloan takes a different approach, especially when traveling with children.
"We don't usually use it. Especially traveling with little ones," Sloan said.
Elliott says a major problem is transparency in how these deals are presented to consumers.
"If you want to offer a nonrefundable airfare or nonrefundable hotel rate, that's totally fine. But you have to tell people about it," Elliott said, "and the issue people are running into is that they don't know that what they're buying is nonrefundable."
He advises consumers to read the fine print carefully and watch for potentially misleading language, such as "For your convenience, this room is prepaid."
"You see a really low fare or a really low price. It looks great, and then you see a little asterisk below that. Click on that little link and read that because you might find something in there that you're not comfortable with," Elliott said.
How to protect yourself while finding deals
With travel costs rising, it’s becoming increasingly important for travelers with prepaid expenses to protect their financial investment.
Travel insurance platform SquareMouth reports that in 2024, 40% of paid travel insurance claims were due to trips getting canceled or cut short.
That's why Elliott almost always recommends booking rooms or airfare that offer some protection, even if they cost more upfront.
"The economy premium option, for example, where you can get a credit and sometimes you can even get refunds with it," Elliott said.
Elliott points out that a fully refundable fare or hotel room may not cost much more and may include other benefits, such as a free checked bag. Non-refundable basic fares may require you to pay to reserve a seat or check a bag.
For those who do choose nonrefundable options, travel insurance can provide a safety net.
According to SquareMouth, travelers can save by only insuring the amount they'd actually lose. If facing a 50% hotel cancellation fee, for example, only insure 50% of the cost.
Still, some travelers like Santino Corleon say nonrefundable travel is just too risky.
"Sometimes things happen and next thing you know, you can't get your money back," he said.
The travel booking decision boils down to a simple question: Are you willing to gamble your trip cost for upfront savings, or do you pay extra for when life inevitably gets in the way?
Smart travelers weigh their options carefully, so you don’t waste your money.
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