Why do airlines offer vouchers to switch flights?

When a flight has more passengers who are ready to fly than there are seats available, airlines must first ask passengers to give up their seats voluntarily, in exchange for compensation, before bumping anyone involuntarily. Airlines may offer passengers incentives, such as money or vouchers, to volunteer.



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In situations where a flight is overbooked, airlines will generally try to solicit volunteers to take another flight in exchange for compensation. This is known as voluntary denied boarding. If there aren't enough volunteers, the airline may have to force people to be bumped off the flight.

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Depending on the airline and your situation, you'll either receive a travel credit or a monetary refund after your change is approved. Airlines will usually waive the change fee and grant a travel credit that can be used within a year of the original booking date.

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If the airline makes a significant change to your itinerary: Don't worry if the fare for the new flight is higher than what you paid for yours; if there's an open seat, the airline will likely move you to the flight you request for free, regardless of what it says it costs.

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There are no federal laws requiring airlines to provide passengers with money or other compensation when their flights are delayed. Each airline has its own policies about what it will do for delayed passengers. If your flight is experiencing a long delay, ask airline staff if they will pay for meals or a hotel room.

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Note: While airlines are not required to issue a refund for non-refundable tickets, they are free to do so or they may issue a credit or travel voucher for future use on the airline.

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Sometimes, when an airline asks for volunteers to give up their seats and fly on a different flight, there are not enough volunteers. When this occurs, the airline will select passengers to give up their seats. This is called “involuntary denied boarding” or “bumping.”

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Frontier Airlines bumped the biggest proportion of passengers of the 15 largest US carriers in early 2023. Of every 10,000 Frontier passengers, 3.73 were involuntarily denied boarding due to oversales, the DOT said. Allegiant, Delta, Endeavor, and Hawaiian didn't bump any passengers in the quarter, per the DOT.

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Overbooked flight compensation under US regulations
If the airline does not make any substitute travel arrangements for you, you are entitled to 400% of the one-way fare price, not to exceed $1,350 as well as any optional fees paid as part of your reservation (e.g. bag fees, seat upgrades, etc.).

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So the airline has offered you a voucher, which is perfectly legal, but you'd rather just have the cash. You'll need to proactively ask your airline for a cash refund in writing. The same goes for if you've booked through an online travel agency like Expedia. They are also covered under DoT rules.

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However, airlines may offer their customers a voucher instead of a refund in such cases. In some situations, a travel voucher may seem more attractive to air travellers than a refund (repayment), as they can use the voucher on future trips with the same airline or other partner airlines to save on ticket costs.

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If you contact the airline or ticket agent to obtain a required refund and you are refused that refund, you should file a complaint against the airline or ticket agent with the Department at https://secure.dot.gov/air-travel-complaint.

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Read the law to the customer service rep if you have to. Be nice, but firm. But, if you already accepted a voucher for a flight the airline canceled, you are still legally entitled to and can ask for a refund instead.

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The airline is required to compensate you for a canceled flight if you were notified less than 14 days before your original scheduled departure date. However, compensation is not required if the airline proves that extraordinary circumstances (e.g., weather) caused the cancellation.

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Once passengers have boarded the aircraft, the compensation structure is $100 in credit for a delay between three and five hours, $175 in credit for a delay between five and six hours, or a $250 credit for a delay of six hours or more.

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When a flight delay occurs, you are entitled to assistance and a choice between rerouting, reimbursement, or rebooking. If you arrive at your destination more than 3 hours after your scheduled arrival time, you are entitled to the same reimbursement, rerouting, and rebooking structure as a denied boarding.

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