Travel disruption can derail even the best-plotted business trip with the need to rebook flights in a timely manner. Civil Aviation Authority (CAA) statistics show that 1.4% of flights were cancelled with less than 24-hour notice in the UK alone last year, while year-to-date figures showed 1.6% of flights were cancelled in the US as of August 2024. So, while most itineraries go according to plan, it’s important to prepare for these instances. Why are flights cancelled? Anything from mechanical issues to staff strikes can cause costly delay.

Whether you’re booking flights for your team or travelling for business yourself, learn how to rebook cancelled flights efficiently and claim appropriate compensation through the airline or with flight cancellation insurance.

Why are flights cancelled?

Airport flight cancellation occurs for many reasons, whether it’s extreme weather or safety reasons. Mechanical errors, overbooked flights, and staff shortages can all cause disruption with little notice to travelers.

Weather events are one of the main causes of airport flight cancellation. While modern aircraft are designed to withstand high-pressure environments, unusual events like volcanic ash clouds and blizzard conditions will typically cause disruption.

Technical issues also lead to mass cancellations, such as the global cyber outage in 2024 that led to flight disruption across United States, Europe and Asia. In this incident, Delta Airlines alone cancelled 20% of its flights when employees couldn’t log into their software.

Understanding passenger rights when business flights are cancelled

Airport flight cancellations can be costly for business travel admins, not only in terms of rebooking cancelled flights but also considering the cost of additional meals and accommodation for employees during delays. What is, and isn’t, covered by the airline will vary by region and carrier.

Airlines bear responsibility for their passengers, so when flights are delayed or cancelled, they should organize an alternative flight at no extra cost. They should also provide meals and accommodation for significant delays and offer full refunds if no alternative transport is acceptable.

Flight delay refunds within the United States

There are no federal laws in place within the United States to protect consumers in the event of a flight cancellation. These policies are defined by individual airlines instead. When booking a business flight, it’s important to check the airline’s terms and conditions for clarity regarding cancellations and delays.

Most will issue full refunds for cancellations, but some will only accommodate travelers on a later flight. If the airline’s unable to provide a new flight within a timely manner, you can expect additional compensation.

Airlines might offer refunds as cash or credit. Credit vouchers are often pushed over a cash refund but be aware of expiration dates for these, as some expire within a year. When drafting a company travel policy, create a clear framework for preferred refund methods.

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Flight delay refunds within the EU

By contrast, the European Union provides a high degree of passenger protection. Business travelers can either select a seat on the next available flight or claim a full refund. If no suitable flight is available from the original airline, you have the option of rebooking cancelled flights with a different carrier. The original airline is required to cover the fare difference if the rebooked flight is more expensive.

EU legislation also covers business travelers in the event of significant flight delays. If these last for longer than three hours, travelers are entitled to additional compensation of up to 600 euros depending on the itinerary.

Flight delay refunds within the UK

Under UK law, passenger rights are protected, but the exact method for compensation and rebooking will vary by airline. Airlines should notify the booker about how to claim for cancelled flights, and this information will also be on their website.

In the UK, compensation depends on the notice given for cancellation, whether this disruption is within the airline’s control, and the length of disruption.

For flights under 1,500km, the CAA states that business travelers could be entitled to £220 compensation, reduced by 50% if the replacement flight is comparable to the original flight in duration. For long-haul journeys, compensation goes up to a maximum of £520.

Am I entitled to compensation if my flight is cancelled?

In most cases, you will receive compensation for cancelled flights, but this will vary by global region and consumer protection laws. It’s also worth checking your airline’s terms and conditions.

Will the airline pay for the hotel if the flight is cancelled in Europe?

Yes, if the delay is long enough passengers within the EU will receive adequate compensation to cover the cost of an overnight stay.

What to do when a business flight is cancelled

Most business trip run smoothly, but what happens when a traveler arrives at the airport and sees that dreaded cancellation notice at departures? Here are the immediate steps to take to prevent further disruption.

1. Choose between rebooking and other options

Gather information to make an informed decision. Your airline must offer alternative travel, but this could involve rebooking on the next flight, waiting a day, taking a train, or even using a competitor.

2. Compare alternative flights in-app

Rebooking the next flight is usually preferred, where possible. Airlines will usually suggest an alternative itinerary immediately, automatically rebooking passengers onto the next available flight. There’s no need to wait in a lengthy queue to confirm flight details, either. This can be done swiftly through the airline’s own app or online portal.

3. Rebook cancelled flights with an online platform

If the airline doesn’t automatically offer a new seat on the next flight, travel planners can use online booking tools like Booking.com for Business to find the best alternative business flights.

Complicated itineraries might require rerouting several legs of the journey, so it’s best to get an overview of team member movements to avoid further disruption. Cancellations can be stressful. Travel managers should ask employees about preferences, whether they’d prefer to get home quickly or stay the night at a hotel.

4. Speak to airline staff about compensation

Weather disruption or IT issues can bring full systems down, meaning there may be no immediate alternatives. At this stage, travelers will need to speak directly to the airline’s customer support agents, particularly if they are already at the airport. Stay calm while the staff strive to find a solution, whether it’s a rebooking or a refund. Retain all receipts for costs incurred during delays, including food and drink, phone calls, and accommodation.

5. Leverage airline loyalty programmes

Loyalty clubs are well worth the money during lengthy flight delays or cancellations, providing access to business lounges and first preference when booking new flights. First class and business class passengers should speak to airline representatives to find out what perks they can expect given during a lengthy delay.

6. Prioritize employee safety

The safety of travelling employees should always come first, including when it comes to flight cancellations. Use a travel management solution that includes full visibility over travelling employees so you can track any unexpected itinerary changes and provide 24/7 customer care.

Does business travel insurance cover flight cancellations?

While airlines have a duty of care to cover the cost of rebooking flights, dependent on region and consumer law, additional losses might require business travel insurance. Most policies cover travel abandonment, but the specificities of flight cancellation insurance will vary by policy and provider.

Cancellation reimbursement often applies to expenses incurred during a delay or cancellation that may not always be covered by the airline, such as accommodation, meals, transportation and phone calls.

Standard business travel insurance covers things like lost luggage, and medical treatment, as well as work-related coverage for things like business equipment.

As with filing any insurance claim, it’s important to retain receipts, boarding passes, and any other documents. If you engage with the airline, retain transcripts of these conversations.

What counts as extraordinary circumstances for flight cancellation?

When flights are cancelled due to ‘extraordinary circumstances’ passengers may not automatically receive compensation. These are factors outside of the airline’s control, such as:

  • Extreme weather conditions
  • Airport worker strikes
  • Terrorism
  • Security risks
  • Political unrest

While these issues give grounds for rejecting compensation claims for cancelled flights, many airlines will still provide flight delay refunds as a measure of goodwill. And where compensation isn’t provided, comprehensive business travel insurance should fill in the gaps.

Is it worth getting trip cancellation insurance for business travel?

For businesses, the expense of a cancelled flight can go beyond the fare itself. It also leads to lost productivity, the cost of unused accommodation or event tickets, and the cost of communication while travelers and admins rebook.

A good business trip insurance policy will potentially offset these additional costs, so it’s worth looking into one with flight cancellation insurance.

How to stay calm when dealing with travel disruption

Travel disruption is a headache for travelers and admins alike, causing stress and frustration. Once you’ve received notice of a flight delay or cancellation, take the time to assess the situation and stay calm.

  1. Gather all information: Pull details from the airline app, employees, travel providers, and booking platforms to see what your options are regarding alternative transportation.
  2. Maintain lines of communication: The travel manager and business traveler should keep in close contact. Managers should outline the steps that will be taken to assist travelers.
  3. Take a break: For lengthy delays, get away from the stressful crowds. Make use facilities like airport lounges to feel refreshed and maintain productivity or book a hotel for the night as required.

Retain documents: Whether it’s through the airline or an insurance provider, your company likely need to file a reimbursement claim for cancelled flights at some stage. Filing away all documentation of the cancellation gives reassurance of a refund.

Stay ahead of flight cancellations with the right tools

Technology ensures a more seamless travel experience for businesses, from booking to aftercare. The best way to rebook a cancelled flight and stay calm throughout the process is by arming business travelers with the right digital tools.

Airline apps

Before any journey, business travelers should download the airline’s app. This holds electronic boarding passes and loyalty programme information, facilitating the check-in and boarding process. Airline apps will also automatically notify travelers in the event of a delay or cancellation. When seats are automatically rebooked, travelers can log into the app to make changes in real-time as well.

Communication apps

Businesses can use collaborative tools like Slack, Microsoft Teams and Asana to manage internal communications at a distance. Set up travel-related channels or chat groups to keep the full team updated of any itinerary changes.

Corporate travel trackers

Companies have a duty of care for travelling employees, and traveler trackers ensure full visibility over movements, even when there’s a change of plan. Booking.com for Business partners with Traxo to view business travel bookings in a centralized place, along with a real-time map showing all traveler whereabouts. This facilitates full support and informed decision making.

Travel management systems

The best travel management platforms prevent disruption where possible with clear procedures for travel admins and business travelers to follow. Set up a portal with the tools travelers need to feel supported and stay compliant during fast-paced situations, including:

Tools like Booking.com for Business keep all itineraries in one place to better track potential issues in real time. The best ways to rebook cancelled flights involve flexibility. These let you cancel or rebook business flights and accommodation without penalty, minimising the cost of cancellations.

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