It’s disappointing enough to have an event canceled after waiting for it for months, but then losing money on something you couldn’t experience at all (and maybe never again) adds insult to injury.
More than half of American adults (54%) who paid for activities canceled due to the pandemic have lost money, according to a new study from Bankrate.com. The most common categories of lost money include canceled short-term home rentals (49%), sporting events (48%), flights (47%), concerts (45%), live theater (43%), and hotels ( 36%). ). ).
Bankrate, in association with UK-based market research firm YouGov, conducted the survey in late July, with a total sample size of 2,624 American adults. While Bankrate didn’t have hard figures on the dollar amounts of how much people were losing on average, the financial services company did get information on how often consumers could get full refunds, partial refunds, less than half the price of the original purchase or nothing at all in the six basic categories mentioned above.
Even to travel this summer, many people had already booked trips long before the start of the pandemic. The most common direct cancellations with little or no chance of getting a refund have been for hotel and flight reservations, as well as for live concerts. Nearly six in 10 people who have not received refunds for canceled travel plans said they had already completely given up their efforts to try to receive a refund.
About a third of Americans who booked but later canceled short-term home rentals got some (but not all) of their money back, while less than a quarter of consumers received partial refunds for canceled flights, hotel stays, music live and sporting events.
Ted Rossman, an industry analyst at Bankrate, says this suggests it’s a “boom or bust” period, meaning customers either get their money back quickly or don’t get it back.
It has to do with who has the customer’s money. Basically someone else has already been paid, and now the original buyer wants it back, and the middleman doesn’t have enough funds to cover it.
Rossman points to StubHub as an example. “The main flaw in their business model was that they paid suppliers before the event; they have since adjusted and no longer do, “explains Rossman.” They never thought that thousands and thousands of events would all be canceled at once. This left them with insufficient funds to repay buyers, so they are offering 120% credit going forward, which is why many people are upset. They want their real money back and they don’t know when they will be able to attend a sporting event or concert again. “
Also a curious finding: The researchers found that consumers who made $ 40,000 or less per year were more likely to lose hope compared to those who made $ 80,000 or more per year. Rossman admits that this statistic surprised him.
“I really don’t know, to be honest. Maybe they paid less for tickets in the first place? Although adjusted for revenue, even a lower ticket price could be significant relative to one’s overall means,” says Rossman. “It could also be that low-income households have less free time to spend in disputes over a refund. Or they just think it’s useless, as if the system is against them and they don’t have the power to defend themselves. “
Rossman says the most common complaints he’s been hearing concern ticket reseller sites, short-term home rentals, and online travel agencies. In all three cases, it is the intermediary.
For consumers seeking refunds, Rossman suggests starting requests with the original point of purchase. If the merchant does not cooperate, consumers should consider their credit or debit card issuers as an alternative. A third option is to appeal to the individual ticket seller, homeowner, or travel provider.
“While everyone’s situation is different, I recommend persistence. Be courteous but firm,” says Rossman. “Be willing to make multiple attempts by phone, online chat, email, and consider other alternatives such as arbitrations and small claims courts.”
